Categories Earnings, LATEST, Technology

Earnings Preview: Cognizant’s revenue to grow 8% in Q3

Cognizant Technology Solutions Corporation (CTSH) is set to report third-quarter 2018 earnings results on Tuesday, October 30, before market opens. Wall Street expects the company to report EPS of $1.13, reflecting a year-over-year growth of 12.9%. Revenue is anticipated to grow 8.3% to $4 billion.

Looking at the past four quarters, Cognizant has consistently surpassed estimates on earnings but on revenue, the company has come shy twice. The firm is seeing good demand for its various solutions such as cloud and analytics.

Cognizant’s strategy of acquiring different companies has proved fruitful as these acquisitions have helped the firm boost its cloud portfolio and digital capabilities as well as acquire a large customer base. The technology giant is also focusing its efforts on increasing its strategic client base. However, Cognizant continues to face numerous headwinds such as competitive pressures in the information technology sector.

In the second quarter, Cognizant surpassed earnings estimates but missed on revenues. Revenues grew 9% to $4 billion while earnings grew 28% to $1.19 per share. The company also saw revenue growth across all segments and regions.

For the third quarter, Cognizant provided an outlook for revenues in the range of $4.06 billion to $4.10 billion and EPS of $1.13. For full-year 2018, the company expects revenues of $16.05 billion to $16.30 billion and earnings of at least $4.50 per share.

Looking at the past three months, Cognizant’s shares are down 13% while over the past one month, the stock is down 6%. The stock was down 1.3% as of 2:50 pm ET on Friday.

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