Shares of India-based outsourcing provider Infosys Technologies (NASDAQ:INFY) declined sharply after the company posted earnings that fell short of Wall Street estimates.
Infosys said that it earned $431 million during its fiscal second quarter, up 4.9% from the same period last year. Analysts had expected earnings of $444 million, though.
Revenue rose to $1.78 billion, up 2.9% from 2011, but well below the $1.86 billion that analysts had forecast.
Unsurprisingly, Infosys shares plunged about 10% in Friday morning trading.
The company also reduced its revenue outlook for the year. It now expects full-year revenue to grow 5% year-over-year, hitting $7.34 billion — 0.3% less than previously issued guidance.
Infosys also announced that it will replace its current CFO, promoting a vice president of finance to the role on Nov. 1.
Despite concerns over an economic slowdown on the continent, revenue from Europe increased 4.7% compared to the first fiscal quarter, while North American revenues edged up just 2.2%.
Company officials said the company continued to show growth during a “very tough time.”