logo
  Join        Login             Stock Quote

Cognizant Technology (CTSH) PT, Estimates Cut By Deutsche Bank After Q1, 'Buy' Maintained

 May 08, 2012 02:06 PM
 


(By Balaseshan) Deutsche Bank (DB) lowered its price target on shares of Cognizant Technology Solutions Corp. (NASDAQ:CTSH) to $80 from $85, while maintaining its "Buy" rating.

After the company's first quarter results, the brokerage reduced its 2012 EPS estimate by $0.08 to $3.36 and its 2013 estimate by $0.19 to $3.94.

CTSH posted 1Q revenue of $1.711 billion (up 2.9% sequential), above DB's estimate of $1.703 billion (up 2.3% sequential), and EPS of $0.79 beat its estimate by $0.01.

However, as the brokerage was worried about in its preview, 2Q-2012 guidance came in below normal seasonality at up 4.6% sequential, which CTSH expects to carry through to 3Q and 4Q (acceleration in late March and early April less than expected) in light of clients' underspending thus far (notably in pharma and banking).

[Related -Cognizant Technology Solutions Corp (CTSH): How Penetration Rates Are Faring?]

Expecting no 2012 discretionary spend pickup, CTSH lowered its 2012 revenue guidance 3 points to at least 20% year-over-year.

Cognizant is a provider of custom information technology, consulting and business process outsourcing services. It operates in four segments: Financial Services; Healthcare; Manufacturing, Retail and Logistics; and Other, which includes communications, information, media and entertainment, and high technology.

CTSH is trading up 5.75% at $59.54 on Tuesday.

iOnTheMarket Premium
Advertisement

Advertisement


Post Comment -- Login is required to post message
Name:  
Alert for new comments:
Your email:
Your Website:
Title:
Comments:
 

rss feed

Latest Stories

article imageInitial Jobless Claims Rose Unexpectedly

Claims unexpectedly rose in the latest report through last weekend to breach 300,000 for the first time read on...

article imageAll Quiet on the Record High Front

What can we glean from the media’s lack of attention to the market’s recent record read on...

article imageThe Chip Maker Short Sellers Should Be Watching

Investing in semiconductor stocks is always tricky. Industry cycles can lead to bumps in the road for the read on...

article imageChicago Fed: US Economic Growth Slowed In October

The pace of US growth slowed more than expected in October, according to this morning’s update of the read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.