Cognizant Technology Solutions’ (NASDAQ: CTSH) Q2 earnings exceeded analysts estimates, while revenue came in-line with the market’s predictions. Cognizant reported adjusted EPS of $0.94 on revenue of $4.14 billion for the second quarter of 2019. Analysts had expected the IT solutions provider to post earnings of $0.92 per share on revenue of $4.14 billion. Cognizant stock rose about 4% in the extended trading hours.
After opening at $65.45 today, Cognizant stock turned to red in the afternoon session after Federal Reserve announced quarter-point rate cut and ended the day down 0.29% at $65.14.
“We are taking the necessary steps to position Cognizant for improved commercial and financial performance,” said CEO Brian Humphries.
The Teaneck, New Jersey-firm had guided second quarter revenue to be in the range of $4.11 billion to $4.15 billion, reflecting growth of 2.6% to 3.6%. When Cognizant reported its first quarter 2019 results, the company slashed FY19 outlook citing the disappointing Q1 performance and sluggish growth predictions in Financial Services and Healthcare segments for the remainder of 2019.
“We are implementing actions in the second half of the year that we expect will lower our existing cost structure and allow for greater investment in growth, talent, and digital solutions. Using our strong balance sheet we returned over $1.1 billion to shareholders in the second quarter,” said CFO Karen McLoughlin.
For the third quarter of 2019, Cognizant expects revenue to grow year-over-year in the range of 3.8-4.8% in constant currency.
For the full-year 2019, the company expects adjusted EPS to be in the range of $3.92-3.98 and revenue is expected to grow in the range of of 3.9-4.9% in constant currency.
Cognizant declared a quarterly cash dividend of $0.20 per share on its Class A common stock for shareholders of record as of August 22, 2019. This dividend will be payable on August 30, 2019.
Cognizant stock, which plummeted to a new 52-week low ($56.73) during the second week of May, had advanced 2% since the beginning of this year and slumped 20% in the trailing 12 months.