Cognizant Technology Solutions Corp : Cognizant 2nd-Quarter Net Up 21% on Sales Growth Across Segments
08/06/2012| 06:51am US/Eastern
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By Chelsea Stevenson
Cognizant Technology Solutions Corp.'s (CTSH) second-quarter profit rose 21% as revenue saw double-digit growth in all of its segments.
Shares were trading 3.7% higher to $60 premarket.
The New Jersey-based company raised its full-year earnings guidance, now expecting at least $3.38 a share, from its previous forecast of $3.36 a share. It affirmed its revenue view.
For the current quarter, the company forecast earnings of 86 cents a share on revenue of at least $1.88 billion. Analysts currently expect 86 cents and $1.88 billion, respectively.
Cognizant has in recent quarters posted a string of strong results as its core financial-services and health-care customers continue to make IT services a priority despite uncertainties in the global economy. For the latest quarter, the company foresaw a "slower than anticipated acceleration in demand," though revenue climbed.
The company reported a profit of $251.9 million, or 82 cents a share, compared with a year-earlier profit of $208 million, or 67 cents a share. Stripping out stock-based compensation expenses, earnings rose to 88 cents from 72 cents.
Revenue rose 21% to $1.8 billion as revenue from the financial services and health-care businesses rose 20% and 25%, respectively. Cognizant in May predicted earnings of 87 cents a share on revenue of least $1.79 billion.
Operating margin widened to 42.6% from 42%.
Write to Chelsea Stevenson at chelsea.stevenson@dowjones.com
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