Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

Cognizant quarterly results beat expectations, appoints new CEO

Published 06/02/2019, 12:31
Updated 06/02/2019, 12:35
© Reuters. The Cognizant logo is seen at the SIBOS banking and financial conference in Toronto
VOD
-
CTSH
-
ACN
-

(Reuters) - Cognizant Technology Solutions (NASDAQ:CTSH) Corp on Wednesday beat Wall Street estimates for quarterly results, benefiting from higher spending by clients in the healthcare and financial industries.

The company also said Francisco D'Souza, its chief executive officer since 2007, will give up the role to become executive vice chairman. Brian Humphries, CEO of Vodafone (LON:VOD) Business, will replace D'Souza, effective April 1.

Before joining Vodafone in 2017, Humphries was a senior executive at companies including Dell and Hewlett Packard.

While services to big banks remain its biggest source of income, revenue from the sector rose just 1.7 percent to $1.45 billion in the quarter. Its healthcare services revenue grew nearly 7 percent, adding $1.20 billion (925.57 million pounds) to the total revenue.

The company competes with Accenture (NYSE:ACN) as well as with major Indian IT companies such as Tata Consultancy Services, Wipro and Infosys.

Cognizant reported net income of $648 million, or $1.12 per share, in the fourth quarter ended Dec. 31, compared with a net loss of $18 million, or 3 cents per share, a year earlier

Excluding items, the consulting and outsourcing services provider earned $1.13 per share, beating the average analyst estimate of $1.07 per share.

© Reuters. The Cognizant logo is seen at the SIBOS banking and financial conference in Toronto

Revenue rose to $4.13 billion from $3.83 billion and narrowly beat the average analyst estimate of $4.11 billion, according to IBES data from Refinitiv.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.