 "Cognizant beats Street view, Q3 earnings up 11 percent")
US-based Cognizant Technology Solutions Corp posted third-quarter profit ahead of Wall Street estimates, helped by growth across all its business units.
The company’s earnings rose 11 percent at $227.1 million, or 73 cents a share, compared with $203.7 million, or 66 cents per share, a year ago as robust demand from its clients drives growth across all its business units.
However, the key takeway from the results is that Cognizant had given a guidance of 5.7 percent growth for its Q3 revenue growth. Analysts were however expecting 6.5 percent, but it has beaten that also, coming in at 7.8 percent.
IT services exporter Cognizant, which has not missed market estimates for over two years, projected fourth-quarter adjusted earnings of 82 cents a share, on sales of at least $1.66 billion.
Analysts, on average, had expected earnings of 71 cents a share, on revenue of $1.58 billion.
Discretionary development spending by clients has been spurring growth at Cognizant, while many of its biggest rivals in India’s showcase software and services sector have raised concerns over economic uncertainties restricting their growth.
“Cognizant has delivered another strong quarter of industry leading revenue growth with non-GAAP operating margins within our target range. Growth during the quarter was again broad-based across our portfolio of industries, services and geographies,” said Francisco D’Souza, President and CEO in a statement.
The company’s 2011 Guidance- Fourth Quarter and Full Year
• Fourth quarter 2011 revenue anticipated to be at least $1.66 billion.
• Fourth quarter 2011 diluted EPS expected to be $0.76 on a GAAP basis and $0.82 on a non-GAAP basis, which excludes $0.06 of estimated stock-based compensation expense.
• Fiscal 2011 revenue expected to be at least $6.11 billion, up at least 33% compared to 2010.
• Fiscal 2011 diluted EPS expected to be $2.83 on a GAAP basis, and $3.05 on a non-GAAP basis, which excludes $0.22 of estimated stock-based compensation expense.
• EPS guidance excludes the impact of any future non-operating foreign currency exchange gains or losses.
**Watch video:**Cognizant Q3 profit beats Street view, ups FY11 guidance
With inputs from Agencies
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