UPDATE 1-Cognizant profit beats view, financial sector demand climbs
- Country:
- India
Cognizant Technology Solutions Corp beat second-quarter profit estimates on Wednesday, as clients in the financial industry spent more on information technology services.
Shares of the Teaneck, New Jersey-based company rose 3.6% to $67.50 in after market trading. Revenue from its financial services segment, which accounts for more than a third of its total revenue, rose to $1.47 billion, above estimates of $1.46 billion. Revenue from healthcare services, however, fell 1.9% to $1.13 billion.
The company competes with Accenture as well as with major Indian IT companies Tata Consultancy Services, Wipro and Infosys. Cognizant said it expected current-quarter revenue to be between $4.23 billion to $4.27 billion, compared with the average analyst estimate of $4.2 billion, according to IBES data from Refinitiv.
The company forecast full-year 2019 revenue growth in the range of 3.9% and 4.9% in constant currency. It had earlier forecast revenue growth between 3.6% and 5.1%. The consulting and outsourcing services provider reported net income of $509 million, or 90 cents per share, in the quarter ended June 30, up from $456 million, or 78 cents per share, a year earlier.
Excluding items, the company earned 94 cents per share, above estimates of 92 cents per share. Revenue rose 3.4% to $4.14 billion, in-line with analysts' average estimate of $4.14 billion, according to IBES data from Refinitiv.
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