Categories Earnings, Technology

Infosys beats Q3 earnings estimates; revenue comes in line

Infosys (NYSE: INFY) reported better-than-expected earnings for the third quarter of 2020 while revenue matched forecasts. Shares were up 6.5% in premarket hours on Friday.

Total revenues increased 8.6% year-over-year to $3.24 billion, coming in line with estimates. Revenues increased 9.5% in constant currency.

Infosys beat Q3 2020 earnings estimates while revenue matched expectations

Net income was $627 million, or $0.15 per share, compared to $502 million, or $0.12 per share, last year. Analysts had forecast earnings of $0.14 per share.

Nilanjan Roy, CFO, said “Operating margins improved further during the quarter driven by relentless cost optimization and operating leverage. Cash generation was extremely strong with cumulative free cash flow crossing $1.5 billion. Return on Equity increased further to 25.9% driven by margin expansion and increased shareholder payouts.”

Digital revenues grew around 40% year-over-year to $1.31 billion while core revenues fell nearly 6% to $1.92 billion. Large deal signings during the quarter amounted to $1.8 billion.

Also read: Constellation Brands Q3 2020 Earnings Report

The number of $100 million-clients totaled 28 at the end of the quarter and the number of $50 million-clients amounted to 61. The top 25 clients contributed 34.2% to total revenues during the quarter.

Operating profit increased 5.4% year-over-year to $711 million. Operating margin was 21.9%.

For fiscal year 2020, the company expects revenue to grow 10-10.5% in constant currency. Operating margin is expected to grow 21-23%.

In a separate press release, Infosys stated that its audit committee found no evidence of financial impropriety or executive misconduct during its investigation related to whistleblower complaints.

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

Most Popular

Should investors worry about Micron’s (MU) weak Q4 results and guidance?

The semiconductor industry is a rapidly growing business segment that currently thrives on the digital transformation wave. The demand for memory chips and other semiconductor products increased over the years,

What has Bed Bath & Beyond (BBBY) outlined for this fiscal year?

Shares of Bed Bath & Beyond (NASDAQ: BBBY) were up on Friday, a day after the company delivered disappointing results for the second quarter of 2022. The company reported a

NKE Earnings: Highlights of Nike’s Q1 2023 results

Nike, Inc. (NYSE: NKE) has reported a decrease in net profit for the first quarter of 2023, despite a modest increase in revenues. The company's stock suffered a big loss

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