Cognizant Forecast Misses Estimates as Clients Cut IT Spending

Technology Reuters

IT services provider Cognizant Technology Solutions Corp forecast current-quarter revenue and profit below analysts' estimates, as clients worldwide cut back on routine IT services spending.

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Shares of the company, which also reported its first revenue miss in six quarters, fell 4 percent in premarket trading on Monday.

Cognizant forecast adjusted profit between 78-80 cents per share and revenue of $3.18 billion-$3.24 billion for the three months ending March.

Analysts on average were expecting a first-quarter profit of 81 cents per share and revenue of $3.32 billion.

Cognizant's revenue rose 17.9 percent to $3.23 billion in the fourth quarter ended Dec. 31.

The company's net income rose to $423.4 million, or 69 cents per share, from $362.9 million, or 59 cents per share, a year earlier.

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Excluding items, the company earned 80 cents per share.

Analysts on average had expected a profit of 78 cents per share and revenue of $3.24 billion, according to Thomson Reuters I/B/E/S. (Reporting by Abhirup Roy in Bengaluru; Editing by Sriraj Kalluvila)