Cognizant (CTSH) Q4 Earnings Beat Estimates, Revenues Up Y/Y
Zacks Investment Research | Feb 06, 2018 09:51PM ET
Cognizant Technology Solutions Corp. (NASDAQ:CTSH) reported fourth-quarter 2017 non-GAAP earnings of $1.03 per share, which beat the Zacks Consensus Estimate by 6 cents and increased 18.4% from the year-ago quarter. The figure was better than management’s expectation of 98 cents.
The company recorded a one-time provisional income tax expense of $617 million related to the Tax Reform Act, which reduced GAAP earnings by $1.04 per share in the fourth quarter. This one-time expense was primarily attributable to the deemed repatriation tax on undistributed earnings of foreign subsidiaries.
Revenues of $3.83 billion were in line with the Zacks Consensus Estimate but improved 10.6% year over year driven by growth in all the four domains. The figure was within management’s guidance of $3.79-$3.85 billion.
2017 at a Glance
In 2017, earnings increased 11.2% year over year to $3.77 per share.
Revenues increased 9.8% to $14.81 billion. Segment-wise, Financial services (38.1% of revenues) Healthcare (28.8% of revenues), Products and Resources (20.5% of revenues) and Communications, Media and Technology (12.6% of revenues) improved 5%, 10.1%, 14.3% and 17.7%, respectively.
Cognizant Technology Solutions Corporation Price and Consensus
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