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Cognizant gets boost from insurance exchanges

The Associated Press

NEWS: Cognizant Technology Solutions Corp. said Tuesday that its third-quarter net income increased 15 percent on revenue gains, due in part to a boost in business from the Affordable Health Care Act.

DETAILS: The information technology consulting and outsourcing firm said that it saw growth in a number of its categories, including its health care segment as many clients prepared for the launch of new health insurance exchanges. Cognizant worked with states and insurers to help them prepare for the launch of the exchanges by improving computer network systems, connecting payers to the exchanges and more. Its health care business revenue increased 11 percent for the quarter.

NUMBERS: Net income increased to $319.6 million, or $1.05 per share, for the quarter that ended Sept. 30. That's compared with net income of $276.9 million, or 91 cents per share, in the prior year. On an adjusted basis, it earned $1.13 per share versus 98 cents per share. Its revenue increased nearly 22 percent to $2.31 billion.

Analysts polled by FactSet were anticipating earnings of $1.10 per share on revenue of $2.26 billion.

FUTURE: Cognizant said it expects to earn $4.01 per share for the year, or $4.37 per share on an adjusted basis, with revenue of at least $8.84 billion. Analysts were forecasting earnings of $3.99 per share on revenue of $8.78 billion.

STOCK: Shares of the Teaneck, N.J. company jumped $3, more than 3 percent, to $89.85 by late afternoon Tuesday, far outpacing the broader market's gains.