Cognizant Gains After Topping Estimates, Boosting ForecastsNick Turner
Cognizant Technology Solutions Corp., a provider of consulting and outsourcing services, rose to the highest price in more than three months after its quarterly results topped estimates and the company raised its forecasts.
Second-quarter earnings were 99 cents a share last quarter, the Teaneck, New Jersey-based company said today in a statement. Analysts had estimated 97 cents on average, according to data compiled by Bloomberg. Sales rose 20 percent to $2.16 billion in the period, compared with the $2.13 billion predicted.
Cognizant cited broad-based growth across industries and regions, and said it was benefiting from an economy that pushes customers to seek greater efficiency. The company relies on a global workforce, including employees in lower-cost countries such as India, to provide outsourcing help and other services.
“Economic pressures and long-term secular industry shifts have been driving fundamental changes in client demands,” President Gordon Coburn said in the statement.
The shares rose 0.8 percent to $74.01 at the close in New York and are little changed this year.
The company raised its annual earnings forecast to at least $3.96 a share, from $3.95. Sales will be at least $8.74 billion, up from a previous forecast of $8.6 billion.