Categories Earnings, Technology

Infosys Q4 profit rises 2%, guides FY20 revenue above consensus

Infosys (NYSE: INFY) reported a 2% increase in earnings for the fourth quarter of 2019 helped by higher revenues as well as lower income tax expenses. The bottom line came in line with the analysts’ expectations while the top line exceeded consensus estimates. The company guided revenue growth for fiscal 2020 above the Street’s view.

Net profit rose 2% to $581 million while earnings remained flat at $0.13 due to higher weighted average shares. Revenues grew by 9.1% to $3.06 billion.

Digital revenues climbed 41.1% year-over-year to $1.04 billion while core revenues declined 1.3% to $2.03 billion. The company had another quarter of over $1.5 billion large deal total contract value in the fourth quarter. Realization per billed employee was steady which reflected rising usage of automation in core services and faster growth in newer digital services.

Infosys (NYSE: INFY) reported a 2% increase in earnings for the fourth quarter of 2019.

Looking ahead into fiscal 2020, the company expects revenue growth in the range of 7.5% to 9.5% in constant currency and operating margin in the range of 21% to 23%. The company intends to deploy various measures of operational efficiencies across the business.

For the financial year 2019, the company’s board has recommended a final dividend of $0.15 per American Depository Receipt (ADR) or INR 10.50 per share.

For the fourth quarter, by client geography, North America contributed to a higher 61.2% of the share to the total revenues compared to the previous year quarter while Europe, Rest of the World and India contributed a lesser share.

Also read: Will Aurora Cannabis survive in marijuana race?

During the quarter, the company’s active number of clients were 1,279, up 6.2% from the prior year quarter, and it added 101 clients during the period, which was 38% higher than last year. Revenue per employee declined by 1.1% to $54,000 while total employees increased by 12% to 228,123.

In comparison, its peers International Business Machines (NYSE: IBM) is scheduled to report earnings results for the first quarter of 2019 on April 16, 2019, after the market closes. Wipro Limited (NYSE: WIT) is scheduled to post its fourth-quarter earnings report on April 16, 2019, after the market closes.

During March-end, Accenture (NYSE: ACN) reported better-than-expected earnings results for the second quarter of fiscal 2019. During February-end, HP Inc. (NYSE: HPQ) posted better-than-expected earnings for the first quarter of 2019.

Shares of Infosys ended Thursday’s regular session down 0.99% at $10.97 on the NYSE. Following the earnings release, the stock inched down over 3% in the premarket session.

 

We’re on Apple News! Follow us to receive the latest stock market, earnings, and financial news at your fingertips

Most Popular

Infographic: Nvidia (NVDA) Q4 revenue up 61%; earnings beat

Nvidia Corporation (NASDAQ: NVDA) Wednesday said its fourth-quarter revenues and profit increased in double-digits amid elevated demand. The results also topped the Street view, driving the stock higher during the

Nutanix (NTNX) Earnings: 2Q21 Key Numbers

Nutanix (NASDAQ: NTNX) reported second quarter 2021 earnings results today. Total revenue remained flat at $346.4 million compared to the same period a year ago. GAAP net loss was $287.3

Macy’s (M) expects digital channels to generate approx. $10 billion in sales by 2023

Shares of Macy’s Inc. (NYSE: M) were down 2.7% in morning trade on Wednesday. The stock has gained 37% since the beginning of the year. A day ago, the retailer

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top