Cognizant Tops Q2 Expectations

Cognizant Technology Solutions Corp CTSH reported stronger-than-expected results for the second quarter. The Teaneck, New Jersey-based company posted quarterly net income of $420.1 million, or $0.68 per share, up from $371.9 million, or $0.61 per share, in the year-ago period. Non-GAAP earnings rose to $0.79 per share from $0.66 per share. Its revenue climbed 22.6 percent year-over-year to $3.09 billion from $2.52 billion. However, analysts were expecting earnings of $0.73 per share on revenue of $3.03 billion. The average estimate among 21 Estimize users was for earnings of $0.74 per share and revenue of $3.03 billion. GAAP operating margin came in at 17.7 percent for the quarter, while non-GAAP operating margin was 20.2 percent. "Our second quarter sequential revenue increase in dollar terms was the strongest in our history," said Francisco D'Souza, Chief Executive Officer of Cognizant. "These results validate that our business strategy and our investments position us well to capture the emerging opportunities as clients look to transform into digital businesses. We increasingly work with our clients to help them re-imagine their businesses and build new capabilities to succeed in the digital era." For the current quarter, Cognizant projects earnings of at least $0.75 per share, on revenue of at least $3.14 billion. Analysts expected earnings of $0.75 per share on revenue of $3.13 billion. The company expects full-year earnings of at least $3 per share, on revenue of at least $12.33 billion. Analysts projected earnings of $2.97 per share on revenue of $12.32 billion. Cognizant shares rose 0.65 percent to close at $63.29 yesterday.