(By Balachander) IT services provider Cognizant Technology Solutions Corp. (NASDAQ:CTSH) slashed its full-year earnings outlook and guided second quarter below consensus, citing slower than expected acceleration in demand, and its shares plunged 8 percent in premarket trading on Monday.
The Teaneck, New Jersey-based company now expects non-GAAP earnings per share (EPS) of $3.62 from prior expectations of $3.69. Revenue is now projected to be at least $7.34 billion from at least $7.53 billion projected earlier, representing a revenue growth of at least 20 percent, down from at least 23 percent expected earlier.
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Analysts expect EPS of $3.45 on revenue of $7.54 billion.
Meanwhile, CTSH reported first-quarter non-GAAP EPS of 86 cents from 71 cents in the year-ago period, while analysts' expected 79 cents. GAAP EPS increased to 79 cents from 67 cents.
Revenue jumped 25 percent to $1.71 billion, in line with consensus estimates.
For the second quarter, the company forecasts non-GAAP EPS of 87 cents on revenue of at least $1.79 billion. Analysts' expect EPS of 83 cents on revenue of $1.84 billion.
CTSH ended Friday's regular trading session at $69.66. The stock has been trading in the 52-week range between $53.54 and $78.75.