CTSH Earnings Prediction
The chart below shows how CTSH performed 10 days before and after its earnings report, based on data from the past quarters. Typically, CTSH sees a +0.63% change in stock price 10 days leading up to the earnings, and a +1.38% change 10 days following the report. On the earnings day itself, the stock moves by +0.73%. This data can give you a slight idea of what to expect for the next quarter's release.
CTSH Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
5.04B
3.00%
4.00%
Gross Margin
31.80%
-0.13%
1.60%
Operating Margin
15.29%
-1.23%
0.59%
Net Margin
11.54%
7.65%
-1.11%
EPS
1.17
12.50%
2.63%
No Data Available
CTSH Earnings Analysis
Cognizant Technology Solutions Corporation (CTSH.O) Earnings Conference Call
Positive
Third Quarter Revenue Increase: 1. Revenue Growth: Cognizant reported third quarter revenue of $5 billion, reflecting a sequential growth of 3.5% in constant currency, driven by strong performance in Health Sciences and Financial Services.
Adjusted EPS Growth: 2. Adjusted EPS Increase: The adjusted earnings per share (EPS) grew approximately 7% year-over-year, marking the fourth consecutive quarter of year-over-year growth, with year-to-date EPS growth at approximately 5%.
Health Sciences Growth: 3. Strong Health Sciences Performance: The Health Sciences segment experienced a robust year-over-year growth of 7.6% in constant currency, supported by strong demand for differentiated offerings.
Large Deal Success: 4. Large Deal Momentum: Cognizant signed six large deals in the quarter, each with a total contract value of $100 million or more, bringing the year-to-date total to 19 such deals, surpassing the 17 signed in all of 2023.
Shareholder Returns Overview: 5. Shareholder Returns: The company returned $391 million to shareholders in the quarter, including $242 million through share repurchases and $149 million in dividends, with a total year-to-date return of approximately $900 million.
Negative
CMT Revenue Decline: 1. Declining Customer Segment: The Communications, Media, and Technology (CMT) segment experienced a 4% year-over-year decline in revenue, indicating ongoing challenges in discretionary spending within this sector.
Flat Bookings Performance: 2. Stagnant Bookings: Third quarter bookings were roughly flat year-over-year, with trailing 12-month bookings down 2% year-over-year, reflecting a lack of growth momentum in securing new contracts.
Cost Impact on Margins: 3. Increased Costs Impacting Margins: The company incurred $33 million in costs related to the NextGen initiative, negatively impacting GAAP operating margin by approximately 70 basis points, highlighting the financial strain from ongoing investments.
Cash Flow Strain: 4. Cash Flow Concerns: Despite a year-to-date free cash flow of approximately $1 billion, the company faced a significant $360 million payment to Indian tax authorities, which could strain future cash flow availability.
European Revenue Decline: 5. Geographic Revenue Decline: Revenue from Europe declined about 2% year-over-year, impacted by reduced discretionary spending, suggesting challenges in maintaining growth in this key market.
CTSH FAQs
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CTSH Earning Call Sentiment
Cognizant Technology Solutions Corporation (CTSH) Q3 2024 Earnings Call Transcript
CTSH.O
1.34%Positive
The earnings call presents a mixed picture: while there are positive aspects like revenue growth, strong EPS, and significant shareholder returns, there are also challenges such as integration costs, regulatory issues, and competitive pressures. The Q&A section highlights some optimism in growth and deal pipeline but also reveals uncertainty in AI productivity and market volatility. The guidance is relatively flat with slight growth potential, which aligns with a neutral sentiment. Without market cap data, assuming a moderate reaction, the stock is likely to remain neutral in the short term.