TEANECK (dpa-AFX) - Cognizant Technology Solutions Corp. (CTSH) on Wednesday reported a higher profit for its fourth quarter boosted by strong revenue growth. The IT, consulting, and BPO services provider also issued earnings forecast for first quarter and fiscal 2012, above analysts' estimates. In a separate statement, the company said it has promoted Gordon Coburn to President and Karen McLoughlin to Chief Financial Officer, with immediate effect.
Fourth-quarter net income grew to $240.13 million or $0.78 per share from $206.17 million or $0.66 per share last year. Excluding stock-based compensation expense, adjusted earnings per share improved to $0.84 from prior year's $0.70.
On average, 23 analysts polled by Thomson Reuters expected earnings per share of $0.77 for the quarter. Analysts' estimates typically exclude one-time items.
Revenue climbed 26.9 percent to $1.66 billion from $1.31 billion a year ago, while 21 analysts estimated revenues of $1.67 billion for the quarter. Sequentially, revenues increased 3.9 percent.
Adjusted operating margin for the quarter was 20.1 percent, marginally higher than the company's targeted 19-20 percent range.
Looking ahead for the first quarter, the company said it expects earnings per share to be $0.79 on a reported basis and $0.85 on an adjusted basis on revenues of at least $1.70 billion. Analysts expect earnings of $0.79 per share and revenue of $1.72 billion for the quarter.
Further, for fiscal 2012, Cognizant sees earnings of at least $3.43 per share and adjusted earnings of $3.69 per share. Revenue would be at least $7.53 billion, up at least 23 percent from 2011. Analysts project earnings of $3.42 per share on revenues of $7.48 billion for 2012.
Regarding its management change, aimed to support the ongoing growth of the business, Cognizant said it also promoted Rajeev Mehta to Group Chief Executive - Industries and Markets, Chandra Sekaran to Group Chief Executive - Technology and Operations and Malcolm Frank to Executive Vice President, Strategy and Marketing.
Coburn served as Chief Financial and Operating Officer since 2007, while McLoughlin most recently served as Senior Vice President of Finance and Enterprise Transformation.
Mehta most recently served as Chief Operating Officer, Global Client Services and Sekaran was President and Managing Director, Global Delivery.
Chief Executive Officer Francisco D'Souza said, 'I will continue to lead Cognizant's overall strategy and direction while focusing my efforts on developing new services in emerging areas that offer significant long-term growth opportunities.'
CTSH closed Tuesday's trading at $72.01, down 0.50 percent, while it increased 2.76 percent in the after-hours trading to $74.
Copyright RTT News/dpa-AFX
