US Equity Market Update for October 12, 2015
Infosys’ price movement
Infosys Limited-ADR (INFY) has a market cap of $38.4 billion. Infosys’ YTD (year-to-date) price movement was a mix of ups and downs in 2015. After the earnings report for 2Q16, it fell by 6.6% to close at $17.88 per share as of October 12, 2015. The price movement on a weekly, monthly, and YTD basis is -8%, 1.1%, and 15.3%, respectively. It’s trading at -5.9% on a trailing five-day basis.
At times, it broke all of the major supports in 2015. Currently, it’s trading at -2.2% below the 20-day moving average, 0.8% above the 50-day moving average, and 5.9% above the 200-day moving average.
The First Trust ISE Chindia Fund (FNI) invests 6.2% of its holdings in Infosys. FNI tracks an index of stocks from China and India. The stocks are screened by market cap and weighted in tiers. FNI’s YTD price movement was -3.4% as of October 9, 2015.
The company’s competitors and their market caps are:
IBM (IBM) – $148.1 billion
Hewlett-Packard (HPQ) – $52.7 billion
Cognizant Technology Solutions (CTSH) – $40.3 billion
Wipro Limited-ADR (WIT) – $21.9 billion
Infosys’ performance in 2Q16
The company reported net revenue of $2,392 million in 2Q16—a rise of 6% compared to net revenue of $2,256 million in 1Q16. In 2Q16, 82 new clients were added. The gross profit and EPS (earnings per share) rose to $904 million and $0.23 per share in 2Q16—a rise of 10% and 9.5% on a quarterly basis. The cash and cash equivalents rose by 3.3% in 2Q16. The current ratio rose to 3.7 and the debt-to-equity ratio fell to 0.23 in 2Q16—compared to the current ratio and debt-to-equity ratio of 3.5 and 0.25 in 1Q16.
On September 2, 2015, Infosys Finacle launched Finacle Payments Bank and Finacle Small Finance Bank solutions for India’s market.
On September 10, 2015, Infosys and ATP announced a strategic partnership to leverage the latest technological advances in mobility, cloud, and analytics to transform tennis fans and players’ experience around the world.
On September 21, 2015, the company signed a three-year agreement with TOMS Shoes to become its worldwide partner. Infosys will maintain and develop its digital platform.
Infosys is in consulting, technology, outsourcing, and next-generation services. It provides strategic consulting, operational leadership, and the co-creation of breakthrough solutions.
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