Cognizant (CTSH) Q3 Earnings Beat, Revenues Increase Y/Y
Zacks Investment Research | Oct 30, 2019 10:50PM ET
Cognizant Technology Solutions (NASDAQ:CTSH) reported third-quarter 2019 non-GAAP earnings of $1.08 per share that beat the Zacks Consensus Estimate by 3 cents. However, the figure decreased 1.8% from the year-ago quarter.
Revenues of $4.25 billion also surpassed the consensus mark of $4.21 billion. The figure improved 5.1% at constant currency (cc) year over year.
Quarter Details
Segment-wise, Financial services (35.1% of revenues), which includes insurance, banking and transaction processing, grew 3% on a year-over-year basis at cc to $1.49 billion. Growth was driven by improvement in project-based work related to insurance and contribution from the previously-announced partnership with three Finnish financial institutions to transform and operate a shared core banking platform. However, softness continued with the company’s largest banking clients.
Healthcare (27.7% of revenues) declined 0.9% year over year at cc to $1.18 billion. The downside resulted from a contract dispute with a customer and the ongoing industry consolidation, which reduced spending and sped up the shift of work to a captive at a large North American client.
However, Life Sciences delivered double-digit growth, driven by large enterprise deals. The company witnessed good traction with digital operation services, momentum in the shared investigator portal for clinical trials and contribution from Zenith Technologies.
Notably, in July 2019, Cognizant completed the acquisition of Zenith Technologies, thus expanding its IoT portfolio. This will enable the company to become a single-source provider of end-to-end smart factory capabilities.
Cognizant Technology Solutions Corporation Price, Consensus and EPS Surprise
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