Categories AlphaGraphs, Earnings, Technology
Cognizant (CTSH) outclasses Q3 earnings and revenue estimates; stock gains
Cognizant Technology Solutions’ (NASDAQ: CTSH) earnings and revenue for the third quarter 2019 surpassed the market’s estimates. The IT solutions provider reported adjusted EPS of $1.08 on revenue of $4.25 billion. Wall Street had expected the company to report earnings of $1.05 per share on revenue of $4.21 billion. Cognizant shares were trading up about 4% immediately after the earnings announcement during the extended trading hours.
Third quarter 2019 GAAP EPS increased to $0.90 from $0.82 in the prior-year quarter. Revenue growth of 4.2% in the recently ended quarter was due to the strong performance in Products and Resources segment as well as Communications, Media and Technology segment, which registered revenue growth of 12% and 9%, respectively.
Financial Servicesrevenue grew modestly by 2%, while Healthcare revenue decreased 1% versus the year-ago quarter.
The Teaneck, New Jersey-firm had guided fourth quarter revenue to grow in the range of 2.1-3.1% in constant currency.
For the full-year 2019, the company expects adjusted EPS to be in the range of $3.95-3.98 and revenue to grow in the range of 2.1-3.1% in constant currency.
“Today we are announcing a simplification of our operating model and a cost reduction program, which will allow us to fund investments in growth,” said CEO Brian Humphries. Cognizant announced 2020 Fit for Growth Plan, which will focus on four core areas; Data, Digital Engineering, Cloud, and IoT.
Cognizant plans to optimize its cost structure and expects to complete this program by the end of 2020. This plan will result in total charges of approximately $150-200 million primarily related to severance and facility exit costs. The company expects annualized gross savings run rate of approximately $500-550 million in year 2021.
CTSH stock had declined 6% so far in this year and 10% from this time last year.
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