Cognizant Q1 Profit Beats View; Backs FY16 EPS Forecast, Tightens Revenue View

(RTTNews) - Cognizant Technology Solutions Co. (CTSH), a provider of IT, consulting, and business process services, reported Friday that its first-quarter net income was $441.2 million, or $0.72 per share, compared to $382.9 million, or $0.62 per share a year ago.

Adjusted earnings per share were $0.80, compared to $0.71 last year.

On average, 26 analysts polled by Thomson Reuters expected earnings of $0.79 per share. Analysts' estimates typically exclude special items.

First-quarter revenue of $3.20 billion was up 10% from last year's $2.91 billion, but was down 0.9% sequentially. Analysts were looking for revenues of $3.23 billion.

Looking ahead, for the second quarter, the company projects adjusted earnings per share in the range of $0.80 to $0.82 and revenues of $3.34 billion to $3.40 billion. Analysts expect earnings of $0.84 per share on revenues of $3.41 billion for the quarter.

For fiscal 2016, the company continues to expect adjusted earnings per share in the range of $3.32 to $3.44.

Revenues are expected in the range of $13.65 billion to $14.0 billion.

Karen McLoughlin, Chief Financial Officer, said, "Based on first quarter results and our visibility on deals ramping up throughout the year, we have tightened our 2016 revenue guidance range to $13.65-$14.0 billion, representing approximately 10-13% growth year-over-year."

Analysts expect earnings of $3.39 per share on revenues of $13.90 billion for the year.