Cognizant sees 86.5% profit growth from last year
Cognizant Technology Solutions Corporation, the I.T. firm and digital consultancy, reported second quarter results last week that saw it make strong gains on the previous year. Revenue for the quarter stood at $3.67 billion, an 8.9% rise from the year-ago quarter, while profit surged to $470 million, a phenomenal 86.5% rise from the same period a year ago.
Cognizant’s share price is up 27% so far in 2017
SOURCE: Yahoo Finance
Francisco D’Souza, the company’s CEO, said:
"Cognizant delivered strong second-quarter results, which reflect our continued progress in helping clients achieve the value of digitizing their entire enterprises, or what we call being digital at scale. We remain dedicated to accelerating our shift to digital services and solutions as we continue to invest in our core business and execute our margin improvement and capital return programs."
The company also revised the lower end of its guidance for the full year, from $14.56 billion - $14.84 billion to $14.7 billion - $14.84 billion. This implies a 9% or 10% growth in revenue for the year.
Karen McLoughlin, the company’s chief financial officer, added:
"Our second quarter results and improved full year outlook demonstrate solid execution in our plan to drive sustainable revenue growth while increasing margins. Our strong balance sheet and cash flows continue to support both our capital return program and our investments in the business to drive future growth."
Dominion holds Cognizant Technology Solutions Corporation in its Global Trends Managed Fund.
If you would you like to receive the Newsfeeds daily, please click here to sign up now!Help us make this Newsfeed better by rating this article. 1 star = Poor and 5 stars = Excellent
- Click here to print this story: Print
The views expressed in this article are those of the author at the date of publication and not necessarily those of Dominion Fund Management Limited. The content of this article is not intended as investment advice and will not be updated after publication. Images, video, quotations from literature and any such material which may be subject to copyright is reproduced in whole or in part in this article on the basis of Fair use as applied to news reporting and journalistic comment on events.