TEANECK, New Jersey — Cognizant Technology raised its outlook for the year after strong performances in its health care and financial services units pushed both profits anid revenue beyond Wall Street expectations Monday.
Shares in the information technology and consulting company quickly soared to an all-time high and traded more than 8 percent higher, the biggest gain on the Standard & Poors index.
Cognizant earned $382.9 million, or 62 cents per share, for the three months ended March 31. A year earlier it earned $348.9 million, or 57 cents per share.
Earnings, adjusted for costs related to mergers and acquisitions and stock option expense, were 71 cents per share. That' 3 cents better than the projections of analysts surveyed by Zacks Investment Research.
Revenue hit $2.91 billion, also topping expectations, driven by a 43 percent revenue spike from its healthcare unit.
"The clients we serve are experiencing tremendous change in their businesses and are increasingly turning to Cognizant to navigate that change," said CEO Francisco D'Souza. "The investments we have made in digital, automation, utility-based delivery models, consulting and industry-specific expertise are clearly paying off."
Cognizant now expects full-year adjusted earnings of at least $2.93 per share on revenue of at least $12.24 billion. Its prior guidance was for earnings of at least $2.91 per share on revenue of at least $12.21 billion.
For the second quarter, it foresees adjusted earnings of at least 72 cents per share on revenue of at least $3.01 billion.
Analysts polled by FactSet anticipate full-year earnings of $2.94 per share on revenue of $12.28 billion and second-quarter earnings of 73 cents per share on revenue of $3.01 billion.
Shares of Cognizant Technology Solutions Corp., based in The Teaneck, New Jersey, rose $4.86, or 8.2 percent, to $64 in afternoon trading. Earlier in the session, the shares reached a new all-time high of $65.55. _____
Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on CTSH at http://www.zacks.com/ap/CTSH
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