Shares of Cognizant (NASDAQ: CTSH) fell 1.6% after the IT services firm reported first-quarter earnings of $0.91 per share, missing the street view of $1.03 per share. Revenues came in at $4.11 billion, up 5% year-over-year. However, analysts had projected revenues of $4.17 billion.
On a reported basis, the company posted a net profit of $441 million, or $0.77 per share, compared to $520 million, or $0.88 per share in the year-over period.
The stock has declined 11% in the trailing 52 weeks. Since the start of this year though, the stock has somewhat recovered, gaining 14%.
Brian Humphries, who took charge as Cognizant CEO on April 1, said, “While I am encouraged by our client centricity, our employees’ winning spirit, and our innovation, we are not yet delivering against the market opportunity.”
The company expects the ongoing execution of its long-term strategy to drive revenue and earnings growth in the current fiscal year. However, a weak first quarter forced the company to slash its full-year guidance.
READ: IMMUNOGEN IS CHEAP AHEAD OF EARNINGS, BUT IS IT WORTH?
The outlook for full-year revenue growth was slashed to 3.6% to 5.1%, from the prior guidance range of 7% to 9%. Full year adjusted EPS is now expected in the range of $3.87-$3.95, compared to the earlier projection of $4.40.
Meanwhile, the growth forecast for the second quarter was projected between 3.9% and 4.9%.
CFO Karen McLoughlin said, “Our revised full-year outlook reflects the first-quarter underperformance and expectations of slower growth in Financial Services and Healthcare for the remainder of 2019.”
Browse through our earnings calendar and get all scheduled earnings announcements, analyst/investor conference and much more!
Most Popular
What to look for when CVS Health (CVS) reports Q3 earnings
Healthcare company CVS Health Corporation (NYSE: CVS) is all set to report earnings next week, with Wall Street expecting a mixed outcome. The company has been facing challenges in certain
eBay (EBAY): A few factors that helped drive growth in Q3 2024
Shares of eBay Inc. (NASDAQ: EBAY) stayed green on Friday. The stock has gained 32% year-to-date. The ecommerce leader delivered revenue and earnings growth for the third quarter of 2024,
CVX Earnings: Chevron reports lower revenue and profit for Q3 2024
Energy exploration company Chevron Corporation (NYSE: CVX) on Friday announced third-quarter 2024 financial results, reporting a decline in net profit and revenues. Net income attributable to Chevron Corporation dropped to
Comments