Infosys Ltd ADR (NYSE:INFY) stock was falling on Friday following the release of its earnings report for its fiscal fourth quarter of 2018.
The fall of INFY stock comes despite Infosys Ltd ADR releasing a solid earnings report for its fiscal fourth quarter of the year. This includes earnings per share of 26 cents on revenue of $2.81 billion. Earnings per share and revenue from the same time last year were 24 cents and $2.57 billion. Wall Street was looking for earnings per share of 25 cents on revenue of $2.78 billion for the fiscal fourth quarter of 2018.
It’s possible that INFY stock is instead being dragged down by the company’s plans for the future. CEO Salil Parekh had this to say in the earnings report.
“We will execute our strategy around the four pillars of Scaling our Agile Digital business which is today US$2.79 billion in revenue, Energizing our client’s Core technology landscape via AI and automation, Re-skilling our employees, and Expanding our localization in markets such as US, Europe, and Australia.”
This basically follows the same outline that previous CEO Vishal Sikka had for the company. Sikka was replaced by Parekh back in January and investors may have been hoping for a change in direction with a new CEO. One change is that the company is selling its Skava and Panaya subsidiaries. These were acquired by Sikka during his time as CEO.
Infosys Ltd ADR’s outlook for the full year of 2019 was also included in its most recent earnings report. The company says that it is expecting revenue for the fiscal year to increase by 7% to 9% from fiscal 2018 revenue of $10.94 billion. This would have it beating out Wall Street’s revenue estimate of $11.7 billion for the fiscal year.
INFY stock was down 7% as of noon Friday.
As of this writing, William White did not hold a position in any of the aforementioned securities.