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Cognizant Technology Q4 Profit Rises As Revenue Climbs 17%

Cognizant Technology Q4 Profit Rises As Revenue Climbs 17%
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2/7/2013 7:01 AM ET

Cognizant Technology Solutions Corp. (CTSH: Quote) on Thursday reported higher profit for the fourth quarter, as revenues climbed over 17 percent from last year, amid growth across all segments. The company issued first-quarter and full year earnings outlook above Wall Street expectations.

Net income grew to $278.78 million from $240.13 million in the prior year. Earnings per share climbed to $0.92 from $0.78. Excluding stock-based compensation expense, earnings were $0.99 per share, while it stood at $0.84 per share last year.

On average, 24 analysts polled by Thomson Reuters expected earnings of $0.91 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues in the quarter climbed 17.1 percent to $1.95 billion from $1.66 billion in the previous year. Analysts expected revenues of $1.95 billion for the quarter.

Segment-wise, Financial Services revenue increased nearly 20 percent to $815.4 million, while Healthcare revenues climbed 25.7 percent to $500.1 million. Manufacturing/Retail/Logistics revenues were $408.71 million, up 21 percent from last year. For 2012, net income increased to $1.05 billion or $3.44 per share from $883.62 million or $2.85 per share in 2011. Full year revenue climbed 20 percent to $7.35 billion.

Looking ahead to the first quarter, the company sees reported earnings of $0.92 per share and adjusted earnings of $1.01 per share. Revenue for the quarter is anticipated to be at least $2 billion.

Analysts look for quarterly earnings of $0.93 per share on revenues of $2 billion.

For the full year, reported earnings per share are expected to be at least $3.95, and adjusted earnings per share are estimated to be $4.31.

Annual revenue is expected to be at least $8.60 billion, up at least 17 percent from the prior year.

Wall Street estimates that full year earnings will be $4.00 per share on revenues of $8.58 billion.

CTSH closed at $76.27 on Wednesday.

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by RTT Staff Writer

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