Cognizant Hikes Sales Forecast On Lower Costs, Growing Investments
Cognizant’s net profit for the September-ended quarter rose 11.5 percent to $495 million.
Software services provider Cognizant raised its sales guidance for 2017 on improved cost structure and growing investments.
The U.S.-based firm expects its annual sales at $14.78 billion-14.84 billion, according to the press statement. That’s higher than its previous forecast of $14.70 billion-14.84 billion.
Karen McLoughlin, chief financial officer of Cognizant said the IT company improved cost structures during the quarter which allow it to invest in the business for growth.
We expect to close out 2017 with solid revenue and earnings growth while having undertaken a substantial return of capital to shareholders.Karen McLoughlin, Chief Financial Officer, Cognizant.
Net profit for the September-ended quarter rose 11.5 percent year-on-year to $495 million. Revenue increased 9.1 percent to $3.77 billion, in line with the company's expectations. The top line was aided by better execution and focused shift to digital services and solutions, Chief Executive Officer Francisco D'Souza said in the statement. The firm expects sales to rise to $3.79-3.85 billion in the fourth quarter.
Earnings per share, as per GAAP, expanded to $0.84 from $0.73 year-on-year.