Cognizant Technology Solutions Corporation (NASDAQ: CTSH) followed suit with the trends of the independent IT-outsourcing by having decent earnings with lower guidance. Weakness in North America was listed as one of the top causes.
Revenue was in line with estimates at $1.71 billion. For 2012 Cognizant forecasts $7.34 billion in revenue and profits of $3.36 per share, and that is actually under the Thomson Reuters targets of $7.54 billion in sales and $3.45 per share in earnings.
Today’s news should not be a surprise to most investors, Indian IT-outsourcing outfits such as Wipro Ltd. (NYSE: WIT) and Infosys Ltd. (NASDAQ: INFY) as sector leaders. Now it is Cognizant’s turn for the drop in shares and this one is down over 15% a $59.09 and the 8 million shares traded early this morning is nearly 300% above its normal trading volume.
Wipro shares are down 1% at $9.33 and Infosys shares are down 1.2% at $45.09 in New York trading of the ADRs.
Computer Sciences Corporation (NYSE: CSC) remains ‘challenged’ with its shares at $27.00 versus a 52-week range of $22.80 to $45.14.
JON C. OGG