ReutersMay 03, 2019 03:06:35 IST
(Reuters) - Cognizant Technology Solutions Corp's first-quarter profit and revenue fell short of analyst estimates and the IT services and outsourcing company cut its full-year revenue forecast, hit by lower demand from banking and insurance customers.
Shares of the company were down 1.65 percent at $65.50 after the bell on Thursday.
Revenue in its financial services unit fell 1.7 percent to $1.44 billion in the quarter. Growth in the business, Cognizant's biggest, has been sluggish, pressuring overall revenue growth.
"Our revised full-year outlook reflects the first-quarter underperformance and expectations of slower growth in Financial Services and Healthcare for the remainder of 2019," said Chief Financial Officer Karen McLoughlin.
The company forecast full-year 2019 revenue growth in the range of 3.6 percent and 5.1 percent in constant currency. It had earlier forecast revenue growth between 7 percent and 9 percent.
Revenue rose to $4.11 billion from $3.91 billion, but missed the average analysts’ estimate of $4.16 billion, according to IBES data from Refinitiv.
Excluding items, the consulting and outsourcing services provider earned 91 cents per share, missing the average analyst estimate of $1.04.
The company's results were unveiled ahead of the scheduled press release time.
(Reporting by Sayanti Chakraborty in Bengaluru; Editing by Bernard Orr)
This story has not been edited by Firstpost staff and is generated by auto-feed.
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