Stocks News Spotlight: Cognizant Technology Solutions (NASDAQ:CTSH)

On Wednesday, Cognizant Technology Solutions Corporation (NASDAQ:CTSH) started its trading session with the price $76.63 and now trading at price of $78.78 by scoring 6.6%. Day range of the stock was $76.63 – $78.99. CTSH stock traded with total volume of 2423307 shares while the average trading capacity remained 3526183 shares.  Earnings per share was $3.23. CTSH has total market capitalization of $44.60B.

Cognizant Technology Solutions Corporation (NASDAQ:CTSH) today announced its fourth quarter and full year 2017 financial results.

Highlights – Fourth Quarter 2017

Quarterly revenue rose to $3.83 billion, up 10.6% from the year-ago quarter.

Quarterly GAAP diluted EPS was $(0.03), compared to $0.68 in the year-ago quarter.

Quarterly non-GAAP diluted EPS1 was $1.03, compared to $0.87 in the year-ago quarter.

Revenue for the fourth quarter of 2017 rose to $3.83 billion, up 10.6% from $3.46 billion in the fourth quarter of 2016. GAAP net loss was $(18) million, or $(0.03) per diluted share, compared to GAAP net income of $416 million, or $0.68 per diluted share, in the fourth quarter of 2016. 2017 GAAP net loss included a one-time incremental income tax expense of $617 million related to the U.S. Tax Cuts and Jobs Act (“Tax Reform Act”). Non-GAAP diluted EPS was $1.03, compared to $0.87 in the fourth quarter of 2016. GAAP operating margin was 17.2% and non-GAAP operating margin1 was 19.7% for the fourth quarter of 2017.

Francisco D’Souza, Chief Executive Officer said that Consistent and solid execution throughout 2017, along with continued investments to further accelerate the shift to digital during the year, gives us confidence that we can deliver a strong 2018. As companies that are already leaders in their industries integrate their domain knowledge with today’s tremendously powerful technologies like artificial intelligence, analytics and cloud, we see a new generation of digital heavyweights emerging. Cognizant is resolved to be the go-to partner to these digital-industrial leaders and also to our fast-growing digital-native clients.

Highlights – Full Year 2017

Revenue increased to $14.81 billion, up 9.8% from 2016.

GAAP diluted EPS was $2.53, compared to $2.55 in 2016.

Non-GAAP diluted EPS was $3.77, compared to $3.39 in 2016.

Revenue for 2017 increased to $14.81 billion, up 9.8% from $13.49 billion for 2016. GAAP net income for 2017 was $1.50 billion, or $2.53 per diluted share, compared to $1.55 billion, or $2.55 per diluted share, for 2016. Non-GAAP diluted EPS was $3.77 in 2017, compared to $3.39 in 2016. GAAP operating margin was 16.8% and non-GAAP operating margin was 19.7% for 2017.

First Quarter & Full Year 2018 Outlook

The Company is providing the following guidance:

First quarter 2018 revenue expected to be in the range of $3.88 billion to $3.92 billion.

First quarter 2018 non-GAAP diluted EPS2 expected to be at least $1.04.

Full year 2018 revenue expected to be in the range of $16.00 billion to $16.30 billion.

Full year 2018 non-GAAP diluted EPS expected to be at least $4.53.

“Our full year 2017 results reflect the successful on-going execution of our long-term strategy, which is expected to drive sustainable revenue and earnings growth, while ensuring we maintain our ability to invest in the business and our financial strength and flexibility,” said Karen McLoughlin, Chief Financial Officer. “Additionally, today we announced a substantial increase in our quarterly dividend. We are also evaluating the longer term impact the new U.S. tax legislation may have on our capital return program.”

Return of Capital Program – Dividend

The Company has reported a quarterly cash dividend of $0.20 per share on Cognizant Class A Common Stock for shareholders of record at the close of business on February 22, 2018.  This dividend will be payable on February 28, 2018. The Company expects to repurchase $1.2 billion of shares by the end of 2018, including the $300 million Accelerated Share Repurchase commenced in December 2017.

Cognizant Technology Solutions Corporation (NASDAQ:CTSH) has year to date performance of 4.06% and weekly performance of -4.96%. The stock has been moved at 6.19% over the last six months and 40.07% throughout last twelve months.  The stock has performed 0.82% around last thirty days, and changed -0.50% over the last three months.  Cognizant Technology Solutions Corporation provides information technology (IT), operations and technology consulting, infrastructure, and business process services worldwide. The company operates through four segments: Financial Services, Healthcare, Manufacturing/Retail/Logistics, and Other.

 

About the Author

Kyle Webster
Kyle Webster
Kyle Webster is a self taught investor and follows the value investing approach to picking stocks. He possesses over 10 years of investment experience, an M.B.A. from Louisiana State University, and is also certified in Risk Management Assurance. Kyle is a Certified Internal Auditor, Data Miner, and author with a career broadly spanning over multiple business areas. He has exploited those observations and developed investment tactics within a fundamentally sound long-term investment strategy. He currently covers Research News category for our site. He can be reached via Email Contact -  kyle@mostvolatilestocks.com.

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