Cognizant drops after Q2 revenue comes in shy of expectations.
Cognizant Technology Solutions reported earlier today Q2 earnings per share of $1.19, above the consensus estimate of $1.10. The quarterly revenue came in at $4.01B, just below the consensus mark of $4.03B. "As our second-quarter results confirm, we're making solid progress on our plan to accelerate our shift to digital services and solutions," said Francisco D'Souza, Chief CEO. "We've been methodical in developing, aligning, and applying our portfolio of skills, services, and solutions to clients' needs, so they can become fully digital organizations. And we remain confident in our ability to invest for growth and achieve our financial targets." For Q3, Cognizant guided EPS to at least $1.13 and revenue in the range of $4.06B-$4.10B. The consensus estimates are $1.14 and $4.12B, respectively. For 2018, the company sees earnings of at least $4.50 and revenue of $16.05B-$16.30B. The estimates are $4.49 and $16.24B, respectively. "Year-over-year non-GAAP operating margin expansion reflects strong operational execution and positions us well to absorb planned investments in the second half of the year," said Karen McLoughlin, CFO. "As a result of this solid performance we are pleased to raise our full year non-GAAP EPS guidance. Our strong balance sheet and cash flows continue to support both our capital return program and our investments in the business designed to create long term value." Shares of Cognizant are down 8%, or $6.75, to $75.34 in morning trading.