Improved demand helps Cognizant's 2Q and outlook

IT outsourcer Cognizant says strong demand lifts 2Q profit 19 percent; raises year forecast

Associated Press

TEANECK, N.J. (AP) -- Cognizant Technology Solutions Corp. reported Tuesday that its second-quarter net income jumped 19 percent as strong demand helped boost the information technology, consulting and outsourcing firm's revenue.

The Teaneck, N.J., company's quarter beat market expectations and it raised its forecast for the year.

Cognizant earned $300.4 million, or 99 cents per share, for the quarter, up from $251.9 million, or 82 cents per share, in the same months last year.

Revenue increased 20 percent to $2.16 billion from $1.8 billion.

Analysts were anticipating earnings of 97 cents per share on revenue of $2.13 billion, according to FactSet

Shares increased $1.90, or 2.6 percent, to $75.31. Its stock has traded between $60.92 and $81.08 in the past 52 weeks.

Cognizant said that healthy demand during the quarter helped it grow across different industries it serves — finance, health care, and manufacturing and retail — and in North America, Europe and other regions where it operates.

The company raised its outlook for the year, but its profit view still came in below analyst estimates. It now forecast earnings of at least $3.96 per share, up a penny from its previous outlook, on revenue of at least $8.74 billion, raised from $8.6 billion. Analysts were anticipating earnings of $3.99 per share on revenue of $8.65 billion.

Cognizant also anticipated earning $1 per share on revenue of at least $2.25 billion in the current quarter. Analysts predicted earnings of $1.03 per share on revenue of $2.22 billion.

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