Categories AlphaGraphs, Earnings, Technology

Cognizant Q4 results top expectations; names Brian Humphries as CEO

Earnings of Cognizant Technology Solutions (CTSH) rose sharply in the fourth quarter and surpassed the Wall Street forecast, supported by an 8% increase in revenues. However, the stock slipped in early trading Wednesday after the professional services provider issued weak guidance.

Cognizant Technology Q4 results top expectations
Cognizant Technology Solutions Q4 2018 earnings infographic

Earnings, on an adjusted basis, rose to $1.13 per share during the three-month period from $1.03 per share in the year-ago quarter, beating estimates. On a reported basis, the company posted a net profit of $648 million or $1.12 per share, compared to a loss of $18 million or $0.03 per share in the fourth quarter of 2017.

In the December quarter, revenues moved up 7.9% annually to $4.13 billion and came in above analysts’ forecast. The top-line growth was broad-based, with all the four business segments registering an increase. Also, the major geographical regions witnessed an improvement in performance compared to last year.

The top-line growth was broad-based, with all the four business segments registering an increase

“Cognizant executed well in 2018, diversifying our revenue base and client roster, and investing to build distinctive leadership in six advanced digital capabilities. With a disciplined plan for executing our digital strategy, we’ve set Cognizant up for the next stage of sustainable strong growth and value creation,” said CEO Francisco D’Souza.

Looking ahead, the company expects the ongoing execution of its long-term strategy to drive revenue and earnings growth in the current fiscal year. Revenues are estimated to increase between 7.5% and 8.5% in the first quarter. The growth forecast for the whole of 2019 is 7-9%.  Adjusted earnings are seen rising to at least $4.40 per share in fiscal 2019.

Cognizant’s stock sinks despite Q3 earnings beat and revenue match

During the quarter, the management appointed Brian Humphries as its new CEO, to replace co-founder Francisco D’Souza who is slated to step down later this year. Humphries, who has also been appointed to the board of directors, will assume his new position on April 1, 2019.

Also see: Cognizant Technology Q4 2018 Earnings Conference Call Transcript

Cognizant shares dropped about 7% in the past twelve months. The stock closed the last trading session lower and continued to loss in the early trading hours Wednesday.


Get access to timely and accurate verbatim transcripts that are published within hours of the event

Most Popular

Infographic: How UnitedHealth Group (UNH) performed in Q2 2024

UnitedHealth Group (NYSE: UNH) reported second quarter 2024 earnings results today. Revenues increased to $98.9 billion from $92.9 billion a year ago. Net earnings attributable to UnitedHealth Group common shareholders

SCHW Earnings: Highlights of Charles Schwab Corporation’s Q2 2024 results

Financial services company The Charles Schwab Corporation (NYSE: SCHW) on Tuesday reported a decrease in adjusted earnings and a modest increase in revenues for the second quarter of 2024. Total

BAC Earnings: Key quarterly highlights from Bank of America’s Q2 2024 financial results

Bank of America (NYSE: BAC) reported its second quarter 2024 earnings results today. Revenue, net of interest expense, of $25.4 billion increased 1% from the prior-year period, reflecting higher asset

Add Comment
Viewing Highlight