Infosys Reports In Line
Infosys Technologies Limited (INFY) reported first quarter fiscal 2013. Quarterly earnings per ADS from continuing operations of 73 cents, per share were in line with the Zacks Consensus Estimate. Earnings grew 9.07% year over year, led by growth in all areas and across the customer base.
Business Details
Total revenue for the quarter was $1.7 billion, representing year-over-year growth of 4.8%. The company saw growth in retail and manufacturing and also in banking, insurance and financial services.
The company had a good quarter in terms of client additions. Infosys added 51 new clients during the quarter. In addition, during the quarter, the company launched Infosys BrandEdge™ in partnership with Fabric, a WPP company. This is a comprehensive cloud-based offering and also the first of its kind that simplifies digital marketing by bringing together integrated marketing and technology expertise on a single platform.
Income
The company recorded an operating profit of $489 million compared with $435 million in the prior-year period. Net income after tax was $416 million for the quarter, which was up 8.3% year over year.
Balance Sheet
Infosys maintains a strong liquidity position with cash & cash equivalents, including investments in available-for-sale financial assets and certificates of deposits, amounting to $3.6 billion at the end of the quarter.
Outlook
For the fiscal ending March 31, 2013 management has lowered its guidance. Infosys now expects revenues of at least $7.4 billion, reflecting year over year growth of 5.0%. Management had guided revenues in the range of $7.55 billion to $7.69 billion earlier.
Earnings per ADS are expected to be $3.03, up 1.0% from the year-ago quarter. Previously, earnings were expected to be in the range of 3.12 to $3.17 a share.
For the fiscal year ending March 31, 2013, the company expects revenue to reflect year-over-year growth of 8.0% to 10.0%. Earnings per ADS are expected to be $3.00 compared to a range of $3.12 to $3.17.
Infosys currently holds a Zacks Rank of #3 which currently implies a short-term Hold recommendation on the stock.
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