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.
by RTT Staff Writer
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