Business software maker Sapient Corp. (SAPE), Wednesday posted a decline in first-quarter profit, hurt mainly by stock-based compensation expense and restructuring charges which offset growth in revenues. Nonetheless, excluding items, adjusted earnings for the quarter improved from a year ago and topped Wall Street estimates.
Sapient shares gained over 6 percent in after-hours trade on the Nasdaq.
"Despite a slower start to the year, our business is well positioned competitively and showing strong momentum," said Sapient Chief Executive Alan Herrick.
The Boston, Massachusetts-based company reported quarterly net earnings to common stock of $6.6 million or $0.05 per share, compared with $9 million or $0.06 per share last year.
Excluding items, adjusted earnings for the quarter climbed to $17 million or $0.12 per share from $15 million or $0.10 per share in the prior year.
On average, seven analysts polled by Thomson Reuters expected earnings of $0.09 per share for the quarter. Analysts' estimates typically exclude special items.
Gross revenues for the quarter totaled $303 million, compared with $269 million a year ago, while Service revenue advanced to $292.6 million from $260 million. Analysts had a consensus revenue estimate of $296.05 million for the quarter.
Results were offset by operating expenses that escalated to $291 million from $253.6 million a year ago.
For the second quarter, Sapient estimates service revenues of $300 million to $310 million. Analysts currently estimates revenues of $306.82 million for the second quarter.
The company noted that both SapientNitro and Sapient Global Markets are expected to grow sequentially, with the majority of the growth coming from SapientNitro.
Sapient stock closed Wednesday's regular trade at $11.19, up $0.03 or 0.27%, on a volume of 0.60 million shares. In after hours, the stock gained $0.71 or 6.34%, to trade at $11.90.
For comments and feedback contact: editorial@rttnews.com
Business News
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.