Zacks: Brokerages Expect Cognizant Technology Solutions Corp (CTSH) Will Announce Quarterly Sales of $4.12 Billion

Wall Street analysts forecast that Cognizant Technology Solutions Corp (NASDAQ:CTSH) will announce sales of $4.12 billion for the current quarter, Zacks reports. Ten analysts have issued estimates for Cognizant Technology Solutions’ earnings. The highest sales estimate is $4.13 billion and the lowest is $4.11 billion. Cognizant Technology Solutions reported sales of $3.83 billion in the same quarter last year, which would suggest a positive year over year growth rate of 7.6%. The business is scheduled to announce its next quarterly earnings report on Wednesday, February 6th.

On average, analysts expect that Cognizant Technology Solutions will report full-year sales of $16.11 billion for the current fiscal year, with estimates ranging from $16.10 billion to $16.12 billion. For the next year, analysts forecast that the firm will report sales of $17.38 billion, with estimates ranging from $17.07 billion to $17.60 billion. Zacks Investment Research’s sales calculations are a mean average based on a survey of sell-side analysts that cover Cognizant Technology Solutions.

Cognizant Technology Solutions (NASDAQ:CTSH) last released its quarterly earnings results on Tuesday, October 30th. The information technology service provider reported $1.19 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.13 by $0.06. The business had revenue of $4.08 billion during the quarter, compared to the consensus estimate of $4.08 billion. Cognizant Technology Solutions had a return on equity of 22.54% and a net margin of 9.07%. The company’s quarterly revenue was up 8.3% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.98 EPS.

Several equities analysts recently commented on CTSH shares. Bank of America downgraded Cognizant Technology Solutions from a “buy” rating to an “underperform” rating and dropped their price objective for the company from $91.00 to $81.00 in a research note on Tuesday, September 4th. HSBC raised shares of Cognizant Technology Solutions from a “hold” rating to a “buy” rating in a report on Tuesday, September 18th. Nomura raised shares of Cognizant Technology Solutions from a “neutral” rating to a “buy” rating and set a $79.00 target price on the stock in a report on Wednesday, October 31st. Citigroup lowered their target price on shares of Cognizant Technology Solutions from $90.00 to $87.00 and set a “buy” rating on the stock in a report on Wednesday, October 31st. Finally, JPMorgan Chase & Co. cut shares of Cognizant Technology Solutions from an “overweight” rating to a “neutral” rating and set a $66.00 target price on the stock. in a report on Tuesday, August 14th. Two analysts have rated the stock with a sell rating, eight have assigned a hold rating, twelve have issued a buy rating and two have issued a strong buy rating to the company’s stock. Cognizant Technology Solutions currently has a consensus rating of “Buy” and a consensus price target of $83.95.

In other news, insider Sean Middleton sold 439 shares of the stock in a transaction dated Tuesday, September 18th. The shares were sold at an average price of $76.28, for a total transaction of $33,486.92. Following the completion of the sale, the insider now directly owns 5,135 shares in the company, valued at $391,697.80. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, General Counsel Matthew W. Friedrich sold 2,881 shares of the stock in a transaction dated Wednesday, September 5th. The stock was sold at an average price of $75.17, for a total transaction of $216,564.77. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 12,773 shares of company stock valued at $929,282. Company insiders own 0.60% of the company’s stock.

Several institutional investors have recently bought and sold shares of CTSH. Legal & General Group Plc raised its stake in Cognizant Technology Solutions by 7.0% in the third quarter. Legal & General Group Plc now owns 2,985,622 shares of the information technology service provider’s stock worth $230,323,000 after buying an additional 194,852 shares in the last quarter. Buckingham Capital Management Inc. raised its stake in Cognizant Technology Solutions by 12.2% in the third quarter. Buckingham Capital Management Inc. now owns 19,664 shares of the information technology service provider’s stock worth $1,517,000 after buying an additional 2,143 shares in the last quarter. Nordea Investment Management AB raised its stake in Cognizant Technology Solutions by 12.1% in the third quarter. Nordea Investment Management AB now owns 8,862,865 shares of the information technology service provider’s stock worth $683,773,000 after buying an additional 954,566 shares in the last quarter. Neuberger Berman Group LLC raised its stake in Cognizant Technology Solutions by 13.7% in the third quarter. Neuberger Berman Group LLC now owns 2,704,065 shares of the information technology service provider’s stock worth $208,578,000 after buying an additional 324,794 shares in the last quarter. Finally, Kentucky Retirement Systems bought a new position in Cognizant Technology Solutions in the third quarter worth about $2,522,000. Institutional investors own 88.12% of the company’s stock.

Shares of NASDAQ CTSH traded up $1.06 during midday trading on Friday, reaching $68.67. The company’s stock had a trading volume of 4,757,297 shares, compared to its average volume of 4,388,811. Cognizant Technology Solutions has a 12-month low of $65.14 and a 12-month high of $85.10. The company has a market capitalization of $39.15 billion, a PE ratio of 19.45, a PEG ratio of 1.25 and a beta of 0.96. The company has a quick ratio of 3.24, a current ratio of 3.24 and a debt-to-equity ratio of 0.06.

The firm also recently declared a quarterly dividend, which will be paid on Friday, November 30th. Shareholders of record on Tuesday, November 20th will be given a dividend of $0.20 per share. The ex-dividend date of this dividend is Monday, November 19th. This represents a $0.80 annualized dividend and a yield of 1.16%. Cognizant Technology Solutions’s payout ratio is 22.66%.

Cognizant Technology Solutions Company Profile

Cognizant Technology Solutions Corporation, a professional services company, provides consulting and technology, and outsourcing services worldwide. The company operates through four segments: Financial Services; Healthcare; Products and Resources; and Communications, Media and Technology. It offers business, process, operations, and technology consulting services; application design and development, and systems integration services; application testing, consulting, and engineering services; and enterprise information management services.

Read More: How do candlesticks reflect price movement?

Get a free copy of the Zacks research report on Cognizant Technology Solutions (CTSH)

For more information about research offerings from Zacks Investment Research, visit Zacks.com

Earnings History and Estimates for Cognizant Technology Solutions (NASDAQ:CTSH)

Receive News & Ratings for Cognizant Technology Solutions Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Cognizant Technology Solutions and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply