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Companies likely to beat earnings estimates next week

Virtusa Corp. (VRTU) – “Growth through Acquisitions’
Virtusa Corp. (VRTU) – “Growth through Acquisitions’

IT outsourcing company Virtusa Corp. (VRTU) is scheduled to report first-quarter results on Tuesday, August 9, 2016, during pre-market hours.

Analysts are looking for earnings of 16 cents per share on revenues of $203.82 million.

Mid May, the company said it expects Q1 adjusted earnings of $0.14 to $0.18 per share on revenue of $202.5 million to $207.5 million, while foreseeing some sequential headwinds in the insurance segment.

Fiscal 2016 was a pivotal year for Virtusa, as it closed the Polaris buy, the largest acquisition in its history. The company expects to achieve Polaris revenue synergies exceeding $100 million, over the next three fiscal years.

For fiscal 2017, the IT consulting company projects revenues of $890 to $920 million and adjusted EPS of $2.10 to $2.30. Analysts expect revenues of $895.36 million on EPS of $2.08.

The full-year guidance reflects first-quarter headwinds, however on exiting Q1, Virtusa sees accelerating revenue growth, and expanding non-GAAP margins.