Cognizant Technology Solutions reports Q3 – revenue rises to over $4 billion
Cognizant Technology Solutions, a world leader in the provision of professional services to a wide range of industries, announced third quarter earnings last week. The company said it was continuing to shift services over to digital platforms, building new capabilities and helping clients “excel with digital services and solutions”.
Cognizant’s share price has risen 5% in 5 days
Source: Yahoo Finance
The company said that revenue for the three months ended September came in at $4.08 billion. That’s an 8% rise from the $3.77 billion it reported in the third quarter of 2017, and met analysts’ expectations. Net income, however, fell on a year on year basis. Cognizant reported earnings of $0.82 per diluted share for the third quarter of 2018. In the third quarter of 2017, it posted earnings of $0.82 per diluted share.
It is worth noting, in the company’s defence, that the poor showing on net income is a direct result of “higher net non-operating foreign exchange losses in 2018 driven by the depreciation of the Indian rupee versus the prior year period.” On a non-GAAP basis, earnings per share for the quarter came in at $1.19 – considerably higher than the $0.98 it delivered in the year-ago quarter.
Cognizant’s CEO and vice chairman of the board, Francisco D’Souza, made the following comment over the earnings: “We made continued progress in our shift to digital by building new capabilities and helping our clients excel with digital services and solutions. We’re speeding clients along their journey to create more engaging customer experiences, automate their processes, and modernize their technology foundations, a three-layer transformation we call digital at scale. Our performance this year demonstrates our ability to both invest for growth and achieve our financial targets.”
Dominion holds Cognizant Technology Solutions in its Global Trends Managed Fund.
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