Infosys Technologies Limited
) reported first quarter fiscal 2013. Quarterly earnings per ADS
from continuing operations of 73 cents, per share were in line with
the Zacks Consensus Estimate. Earnings grew 9.07% year over year,
led by growth in all areas and across the customer base.
Total revenue for the quarter was $1.7 billion, representing
year-over-year growth of 4.8%. The company saw growth in retail and
manufacturing and also in banking, insurance and financial
The company had a good quarter in terms of client additions.
Infosys added 51 new clients during the quarter. In addition,
during the quarter, the company launched Infosys BrandEdge™ in
partnership with Fabric, a WPP company. This is a comprehensive
cloud-based offering and also the first of its kind that simplifies
digital marketing by bringing together integrated marketing and
technology expertise on a single platform.
The company recorded an operating profit of $489 million
compared with $435 million in the prior-year period. Net income
after tax was $416 million for the quarter, which was up 8.3% year
Infosys maintains a strong liquidity position with cash &
cash equivalents, including investments in available-for-sale
financial assets and certificates of deposits, amounting to $3.6
billion at the end of the quarter.
For the fiscal ending March 31, 2013 management has lowered its
guidance. Infosys now expects revenues of at least $7.4 billion,
reflecting year over year growth of 5.0%. Management had guided
revenues in the range of $7.55 billion to $7.69 billion
Earnings per ADS are expected to be $3.03, up 1.0% from the
year-ago quarter. Previously, earnings were expected to be in the
range of 3.12 to $3.17 a share.
For the fiscal year ending March 31, 2013, the company expects
revenue to reflect year-over-year growth of 8.0% to 10.0%. Earnings
per ADS are expected to be $3.00 compared to a range of $3.12 to
Infosys currently holds a Zacks Rank of #3 which currently
implies a short-term Hold recommendation on the stock.
INFOSYS LTD (INFY): Free Stock Analysis Report
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