Cognizant Shares Soar on Improved 2012 Outlook

by Christopher Freeburn | August 6, 2012 1:18 pm

Cognizant Shares Soar on Improved 2012 Outlook

Cognizant Technology Solutions (NASDAQ:CTSH[1]) announced that it earned $251.9 million during the second quarter[2], up from $208 million in the same period last year.

Adjusted EPS for the quarter was 88 cents. That beat the 80 cents a share that Wall Street was looking for, Reuters noted.

The company, which began as part of Dun & Bradstreet, recorded revenue of $1.8 billion, up 21% from 2011. That also topped analysts, who predicted revenue of $1.79 billion.

Company officials increased their earnings outlook for 2012 to $3.64 a share, up from earlier estimates of $3.62 a share. That handily exceeded the $3.37 a share analysts had anticipated.

Investors liked the news, sending Cognizant shares surging more than 11% in Monday mid-day trading.

The company also expects revenue for the year of $7.34 billion, which is in line with analysts’ projections.

Cognizant, whose financial services clients include JPMorgan Chase (NYSE:JPM[3]) and UBS (NYSE:UBS[4]), recently announced a $330 million agreement with ING (NYSE:ING[5]) to expand the services it already provides to the Dutch insurance company’s American unit.

Endnotes:
  1. CTSH: http://studio-5.financialcontent.com/investplace/quote?Symbol=CTSH
  2. during the second quarter: http://in.reuters.com/article/2012/08/06/cognizant-results-idINL4E8J63J320120806
  3. JPM: http://studio-5.financialcontent.com/investplace/quote?Symbol=JPM
  4. UBS: http://studio-5.financialcontent.com/investplace/quote?Symbol=UBS
  5. ING: http://studio-5.financialcontent.com/investplace/quote?Symbol=ING

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