Cognizant Technology Solutions Corp. (CTSH), a provider of IT, consulting, and BPO services, Wednesday reported higher third-quarter profit, as revenues climbed 12 percent with growth across all segments. Quarterly revenues met analysts' expectations. The company also lifted its outlook for full year 2014.
"Our overall demand environment remains strong and our results this quarter highlight that we are competing, winning and executing transformational engagements for clients in various industry segments globally," said Gordon Coburn, President.
For the quarter, the company's net income increased to $355.62 million or $0.58 per share from $319.63 million or $0.53 per share in the previous year.
Non-GAAP earnings per share were $0.66, while the firm posted $0.59 in the previous year.
On average, 13 analysts polled by Thomson Reuters expected the company to report earnings of $0.59 per share for the quarter. Analysts' estimates typically exclude special items.
Revenues for the quarter climbed 11.9 percent to $2.58 billion from $2.31 billion in the preceding year. Revenues were up 2.5 percent sequentially. Wall Street expected revenues of $2.57 billion for the quarter.
Financial Services segment revenue grew 13.4 percent, Healthcare revenues were up 9.2 percent, and Manufacturing/Retail/Logistics saw revenue growth of 8.6 percent.
Looking ahead, for the fourth quarter, Cognizant expects non-GAAP earnings per share to be at least $0.63. Excluding any impact from the acquisition of TriZetto, the firm sees revenue of between $2.61 billion and $2.64 billion for the quarter.
Analysts project fourth-quarter earnings of $0.59 per share, on $2.58 billion in revenues.
For full year 2014, the company currently anticipates non-GAAP EPS to be at least $2.57. Revenue is now projected to be between $10.13 billion and $10.16 billion.
Wall Street currently is looking for earnings of $2.36 per share, on revenues of $10.10 billion for the year.
Earlier, the company forecast 2014 earnings, excluding items, of $2.54, and revenue to be up at least 14 percent from 2013.
It was in mid-September that Cognizant entered into a definitive agreement to acquire privately held TriZetto Corp. for $2.7 billion in cash. TriZetto is a provider of healthcare information technology and service solutions.
Francisco D'Souza, chief executive officer said, "There is a tremendous opportunity in the marketplace as the advent of new digital technologies, global economic pressures, and an evolving regulatory environment force businesses across all industries to change and adapt faster than ever before."
CTSH closed Tuesday's trading at $48.49, down 0.82 percent. In the pre-market activity on Wednesday, the shares are up 2.91 percent.
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