IT services firm Cognizant Technology Solutions reported a 9.1% rise in third quarter revenue backed by higher spending from its healthcare and financial clients.
IT services firm Cognizant Technology Solutions reported a 9.1% rise in third quarter revenue backed by higher spending from its healthcare and financial clients. Revenue rose to $3.77 billion from $3.45 billion, a year ago. The company said on Wednesday that its net income rose to $495 million or 84 cents per share in the quarter ended Sept. 30, from $444 million or 73 cents per share, a year earlier. The company had earlier said that it expected current-quarter revenue to be between $3.73 billion to $3.78 billion, largely in line with the average analysts’ estimate of $3.76 billion, according to Thomson Reuters.
Notably, the stock of Cognizant Technology Solutions Corp hit a new 52-week high yesterday. The 52-week high event is an important milestone for every stock because it shows very positive momentum and is time when buyers come in. During such notable technical setup, fundamental investors usually stay away and are careful shorting or selling the stock.
Earlier, Cognizant Technology Solutions Corp. had raised the lower end of its 2017 revenue forecast, easing concerns of tighter spending from its healthcare clients amid uncertainty surrounding the US healthcare policy. The healthcare sector’s worry has been taking a toll on IT services providers lately, forcing them to give bleak forecasts. Cognizant gets a large chunk of its revenue from financial services and healthcare clients. In August this year, chief executive Francisco D’Souza told Reuters the heavy investments in healthcare have been paying off and the company expected to see continued demand from the sector. “The investments are really paying off, creating strong growth in the first half of the year, which gives us the confidence to take our guidance up for the full year,” chief executive Francisco D’Souza told Reuters in August this year.