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Market Overview

A Preview Of Cognizant Tech Solns's Earnings


On Wednesday, February 03, Cognizant Tech Solns (NASDAQ:CTSH) will release its latest earnings report. Benzinga's report can help you figure out the ins and outs of the earnings release.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Cognizant Tech Solns EPS will likely be near $0.9 while revenue will be around $4.25 billion, according to analysts. Cognizant Tech Solns EPS in the same period a year ago totaled $1.07. Sales were $4.28 billion.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

The analyst consensus estimate would represent a 15.89% decrease in the company's earnings. Revenue would have fallen 0.79% from the same quarter last year. Here is how the Cognizant Tech Solns's reported EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020
EPS Estimate 0.90 0.69 0.93 1.04
EPS Actual 0.97 0.82 0.96 1.07
Revenue Estimate 4.15 B 3.83 B 4.22 B 4.23 B
Revenue Actual 4.24 B 4.00 B 4.22 B 4.28 B

Stock Performance

Shares of Cognizant Tech Solns were trading at $78.84 as of February 01. Over the last 52-week period, shares are up 22.66%. Given that these returns are generally positive, long-term shareholders should be content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Cognizant Tech Solns is scheduled to hold the call at 17:00:00 ET and can be accessed here.


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Posted-In: BZI-EPEarnings