Cognizant (CTSH) to Report Q4 Earnings: What's in Store?
Cognizant Technology Solutions CTSH is scheduled to report its fourth-quarter 2023 results on Feb 6.
CTSH expects fourth-quarter 2023 revenues to be between $4.69 billion and $4.82 billion, indicating a decline of 3.1% to an increase of 0.3%. Acquisitions are expected to contribute 100 basis points (bps).
The Zacks Consensus Estimate for the fourth quarter is pegged at $4.76 billion, indicating a year-over-year decline of 1.6%.
The consensus mark for earnings is pegged at $1.04 per share, unchanged in the past 30 days.
Cognizant Technology Solutions Corporation Price and EPS Surprise
Cognizant Technology Solutions Corporation price-eps-surprise | Cognizant Technology Solutions Corporation Quote
Cognizant’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 6.63%.
Let’s see how things have shaped up for the upcoming announcement.
Factors to Note
Cognizant’s fourth-quarter 2023 performance is likely to have benefited from significant growth in its digital business operations, fueled by an expanding partner base as companies worldwide accelerate digital transformation.
The company’s robust generative AI capabilities, driven by its growing investments to train thousands of Cognizant’s employees in generative AI, are expected to have been a key growth catalyst for the company in the to-be-reported quarter.
High demand across its logistics, utility and travel and hospitality segments is expected to have contributed well to overall top-line growth in fourth-quarter 2023.
Cognizant’s NextGen initiative is expected to have played a pivotal role in enhancing operational efficiency in the to-be-reported quarter.
However, Cognizant is suffering from weakness in the Financial Services segment. It continues to expect the challenging macro environment to hurt spending rates and affect top-line growth.
What Our Model Says
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
Cognizant currently has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
BlackLine BL has an Earnings ESP of +2.62% and a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
BlackLine is scheduled to release fourth-quarter 2023 results on Feb 13. BL’s shares have gained 10.1% in the past six months.
Twilio TWLO has an Earnings ESP of +31.37% and a Zacks Rank #2.
Twilo is set to announce fourth-quarter 2023 results on Feb 14. TWLO’s shares have gained 15.5% in the past six months.
Bill Holdings BILL has an Earnings ESP of +6.17% and a Zacks Rank #3.
Bill Holdings is set to announce second-quarter fiscal 2024 results on Feb 8. BILL’s shares have declined 33.4% in the past six months.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Cognizant Technology Solutions Corporation (CTSH) : Free Stock Analysis Report
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