By RTT News,
February 05, 2014, 07:57:00 AM EDT
(RTTNews.com) - Cognizant Technology Solutions Corp. ( CTSH ), a provider of IT, consulting, and BPO services, Wednesday reported a higher fourth-quarter profit, as revenues climbed about 21 percent and met analysts' estimates. Looking ahead, the firm sees at least 16.5 percent growth in 2014 revenues. Cognizant also announced a two-for-one stock split.
Gordon Coburn, president of Cognizant said, "Our growth during 2013 was broad-based across our industries, geographies and service lines...We anticipate that the healthy demand environment we witnessed in 2013 will continue into 2014 and we are well positioned to capture it."
For the fourth quarter, the company posted net income of $324.33 million or $1.06 per share, higher than $278.78 million or $0.92 per share in the previous year.
Excluding stock-based compensation expense and acquisition-related charges, adjusted earnings per share totaled $1.15 per share for the recent quarter, while the firm posted $0.99 per share last year.
On average, 22 analysts polled by Thomson Reuters expected earnings per share of $1.06 for the quarter. Analysts' estimates typically exclude one-time items.
Quarterly revenues climbed 20.9 percent to $2.36 billion from $1.95 billion in the year-ago quarter, and came in line with analysts' estimates.
Revenues from Financial Services segment grew 22.3 percent to $997.15 million. Healthcare segment generated revenues of $613.29 million, up 22.6 percent from a year ago.
Manufacturing/Retail/Logistics also showed a revenue growth of 20 percent to $490.24 million.
Geographically, North America revenues climbed 18.3 percent, UK revenues were up 19.3 percent, and Rest of Europe experienced a revenue growth of 52.4 percent. Revenue from Rest of World climbed 26.6 percent compared to the same quarter last year.
Looking ahead to the first quarter, the company expects adjusted earnings per share to be $1.18, prior to the impact of upcoming stock split. Revenues are anticipated to be at least $2.42 billion.
Analysts project first-quarter earnings of $1.10 per share, on revenues of $2.42 billion.
For full-year 2014, adjusted earnings per share are expected to be at least $5.02, prior to impact of upcoming stock split; while Cognizant sees full-year revenue to be at least $10.3 billion, up at least 16.5 percent compared to 2013.
Analysts expect the company to report earnings of $4.77 per share, on revenues of $10.38 billion for 2014.
In addition, the board has declared a two-for-one stock split on its Class A common stock in the form of a 100 percent stock dividend. The company noted that stockholders of record as of February 21, 2014 would be entitled to one additional share of Class A common stock for each share held on the record date.
The stock dividend distribution may occur on or about March 7, 2014, and the company's Class A common stock is expected to commence trading on a post-split basis the business day following the distribution date, the firm said.
CTSH closed Tuesday's regular trading at $97.01 on the Nasdaq.
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