- FY Adjusted EPS Forecast: Increased to a range of $4.62 to $4.70 from the previous $4.50 to $4.68. The estimate was $4.60.
- FY Revenue Forecast: Adjusted to between $19.3 billion and $19.5 billion, compared to earlier expectations of $18.9 billion to $19.7 billion. The estimate was $19.4 billion.
- FY Adjusted Operating Margin: Remains unchanged at 15.3% to 15.5%, aligning with the estimate of 15.3%.
- Second Quarter Results:
- Adjusted EPS: $1.17, surpassing last year’s $1.10 and the estimate of $1.12.
- Revenue: $4.85 billion, a slight decline of 0.7% year-over-year, but above the estimate of $4.8 billion.
- Segment Revenue for Q2:
- Financial Services: $1.45 billion, down 1.1% y/y, but higher than the $1.38 billion estimate.
- Products & Resources: $1.13 billion, down 4.3% y/y, slightly below the $1.16 billion estimate.
- Communications, Media & Technology: $816 million, up 1.2% y/y, slightly below the estimate of $831.3 million.
- Healthcare: $1.46 billion, up 1.5% y/y, above the $1.43 billion estimate.
- Full-Year 2024 Guidance:
- Adjusted Operating Margin guidance remains between 15.3% and 15.5%, indicating a year-over-year expansion of 20 to 40 basis points.
- Revenue guidance narrowed to a decline of 0.5% to growth of 1.0% in constant currency, an increase at the midpoint.
- Third Quarter Revenue Forecast: Expected to be $4.89 billion to $4.96 billion, a 0.2% decline to a 1.3% increase, or flat to a 1.5% increase in constant currency.
- Comments: CFO Jatin Dalal mentioned that sequential revenue growth of 2.1% in constant currency was driven by the Financial Services and Health Sciences segments, marking the strongest growth in two years.
- Analyst Ratings: 6 buys, 21 holds, 2 sells.
Cognizant Tech Solutions A on Smartkarma
Analyst coverage of Cognizant Tech Solutions A on Smartkarma by Baptista Research provides valuable insights into the company’s performance and future prospects in the technology sector. In the report titled “Cognizant Technology Solutions: Are Its AI Investments Coming In Too Late? – Major Drivers,” the analysts highlight the firm’s progress against strategic priorities in the first quarter of 2024, showcasing revenue growth exceeding guidance and improved operating margins year-over-year. Despite these positive indicators, flat sequential revenue and a year-over-year revenue decline of 1% raise concerns amidst a challenging demand environment.
Another report from Baptista Research, “Cognizant Technology Solutions: Solid Investment in AI and Automation Technologies! – Major Drivers,” discusses the company’s fourth-quarter 2023 results, emphasizing a $4.8 billion revenue in line with guidance despite macroeconomic pressures. However, a 1.7% year-over-year revenue decrease signals ongoing challenges. The bullish sentiment expressed by Baptista Research indicates cautious optimism regarding Cognizant’s strategic investments in AI and automation technologies amidst a competitive landscape.
A look at Cognizant Tech Solutions A Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 4 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Cognizant Technology Solutions Corporation, a provider of custom IT consulting and technology services, has received a positive outlook based on the Smartkarma Smart Scores. With a solid overall assessment, the company has achieved high scores in Growth, Resilience, and Momentum, indicating strong potential for long-term success. This bodes well for Cognizant Tech Solutions A as it navigates the dynamic landscape of the technology sector.
Despite average scores in Value and Dividend factors, the company’s expertise in technology strategy consulting, complex systems development, and data warehousing positions it well for future growth. Cognizant Tech Solutions A‘s ability to maintain momentum and resilience underlines its capacity to adapt and thrive amidst industry challenges. Investors may view the company favorably for its promising long-term outlook.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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