Infosys Tops EPS Estimates, Plunges on Revenue and Guidance


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Infosys (NYSE: INFY ) has become the punching bag of choice on Wall Street as the week comes to a close. Although it topped estimates on the EPS front, it has taken a nosedive on its weak revenue and guidance.

The Bangalore, India-based firm posted fourth quarter EPS of $0.77, up 3.3 percent year-over-year. It beat the Wall Street consensus of $0.74 per share.

Fourth quarter revenue soared 18 percent to $1.91 billion, but fell short of expectations of $1.99 billion.

Fiscal 2013 EPS grew 13 percent to $3.02, edging estimates of $2.99.

Full-year revenue jumped nearly 20 percent to $7.39 billion, but narrowly missed analysts' hopes of $7.45 billion.

Strong Growth in All Segments

Infosys hit a grand slam during the fourth quarter with strong revenue growth in all segments.

The company's manufacturing segment grew most at 23.5 percent during the fourth quarter and 28.2 percent in fiscal 2013. Its retail, consumer product group, logistics, life sciences and healthcare segment came in at a close second, climbing around 23 percent in the quarter and 24.8 percent versus fiscal 2012.

Meanwhile, the financial services and insurance segment also saw double-digit growth, finishing up nearly 17 percent for the quarter and 15.6 percent for the year.

Infosys' energy, utilities, communication and services segment was the only one that didn't experience a double-digit increase during the quarter, but still posted a solid 9.6 percent gain. For the year, it joined all other segments with double-digit growth, rising 12.4 percent.

New Director

On April 11, Infosys' board of directors appointed Leo Puri as additional director. Puri is also a senior advisor at Indian management consulting firm McKinsey & Co.


Infosys' board of directors recommended a final dividend of $0.49 per share, subject to approval at the company's annual meeting on June 15.

Weak Guidance

According to The Times of India , Infosys has forecasted conservative revenue growth for fiscal 2014. While analysts projected growth as high as 12 percent, the outsourcing magnet predicts sales will climb six to 10 percent, as notes The Times of India.

Market Reaction

After rising above $54 on Thursday, Infosys has tanked on word of its weak revenue and guidance. The stock has tumbled nearly $10 and rests at a three-month low as of this writing.

Infosys is down over 18 percent on Friday.

(c) 2013 Benzinga does not provide investment advice. All rights reserved.

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