Cognizant Technology Solutions Corp. (CTSH) 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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