Cognizant Follows IT-Outsourcing Trends South (CTSH, SIP, INFY, CSC)
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…
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
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Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.