Syntel Surging on Earnings Beat
Shares of Syntel (NASDAQ: SYNT) are seeing much strength during Thursday's trading session after the company announced quarterly results this morning, which thrilled investors.
Syntel's revenue for the fourth quarter increased 19 percent to $172.4 million, compared to $144.9 million in the prior-year period, and increased three percent sequentially from $167.6 million in the third quarter of 2011. During the fourth quarter, Applications Outsourcing accounted for 75 percent of total revenue, with Knowledge Process Outsourcing (KPO) at 15 percent, e-Business contributing eight percent and TeamSourcing at two percent.
The Company's gross margin was 42.1 percent in the fourth quarter, compared to 38.4 percent in the prior-year period and 39.8 percent in the third quarter of 2011. Selling, General and Administrative (SG&A) expenses were 11.4 percent of revenue in the fourth quarter, compared to 17.4 percent in the prior-year period and 21.9 percent in the previous quarter. Fourth quarter income from operations was 30.7 percent of revenue as compared to 20.9 percent in the prior-year period and 17.9 percent in the third quarter.
Currently, shares of Syntel are trading up over 16.4%, at about $52.90 per share.
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