Cognizant Earned 80 Cents per Share for Q4

This morning, Cognizant Technology Solutions (CTSH) reported Q4 earnings of 80 cents per share which was two cents more than expectations. The company had previously said it expected earnings of at least 77 cents per share. Quarterly revenue rose 17.9% to $3.23 billion.

“We are pleased with our strong performance in 2015,” said Francisco D’Souza, CEO. “At a time when major technology shifts are disrupting all industries, clients are looking to a partner like Cognizant to work with them to create the winning business models of tomorrow at the intersection of the physical and digital worlds. Our investments in disruptive technologies, new business models and best-in-class delivery uniquely position us to enable clients to drive digital transformation at enterprise scale.”

For the year, Cognizant made $3.07 per share. Revenue rose 21.0% to $12.42 billion. A year ago, their initial guidance for 2015 was for earnings of at least $2.91 per share and revenue of at least $12.21 billion. Overall, 2015 was a very good year for CTSH.

Now for guidance. This is their first look at 2016. Cognizant sees Q1 earnings between 78 and 80 cents per share. For the year, CTSH expects earnings to range between $3.32 and $3.44 per share. That’s very light. In Friday’s newsletter, I said I was looking for something around $3.45 per share. Don’t worry. I think the company is lowballing expectations so they can raise them later on.

Cognizant expects Q1 revenue between $3.18 billion and $3.24 billion, and full-year revenue between $13.65 billion and $14.20 billion.

Update: CTSH is trading about 7% lower this morning.

Posted by on February 8th, 2016 at 7:24 am


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