Cognizant Technology Solutions Corp (NASDAQ:CTSH) reported a better-than-expected quarterly profit on increased demand for its outsourcing services, and the information technology services provider raised its full-year adjusted profit forecast.
The company now expects full-year adjusted earnings of at least $3.64 per share, up from its previous forecast of $3.62 per share. It reaffirmed its revenue forecast of at least $7.34 billion.
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Analysts on average were expecting full-year earnings of $3.37 per share on revenue of $7.34 billion, according to Thomson Reuters I/B/E/S.
The outlook for IT services companies has been mixed at best. Indian outsourcing heavyweights Infosys Ltd and Wipro Ltd had forecast weak sales, citing slowing global outsourcing spend, while others like Capgemini raised growth targets.
Cognizant's net income rose to $251.9 million, or 82 cents per share, for the second quarter from $208 million, or 67 cents per share, a year earlier.
Excluding items, the company, which also competes with Accenture Plc and Computer Sciences Corp, earned 88 cents per share.
Revenue rose 21% to $1.8 billion.
Analysts on average had expected earnings of 80 cents per share on revenue of $1.79 billion.
Cognizant shares have fallen about 20% since May 7 when it lowered its full-year forecast for the first time in nearly four years. They were set to open 3.7% higher on Monday after closing at $57.86 on Friday on the Nasdaq.