Cognizant Technology Solutions Corporation meets expectations with full-year earnings
Cognizant Technology Solutions Corporation recently released its full-year earnings, meeting analysts' expectations with revenues of US$19b and statutory earnings per share of US$4.21.
Analysts project slight revenue increase for 2024
Following this strong performance, analysts are forecasting a slight increase in revenue to US$19.5b for 2024. They also expect earnings per share to rise by 6.8% to US$4.56. These projections indicate a positive outlook for the company's future growth.
Stable price target indicates confidence in Cognizant
Despite the anticipated growth, the consensus price target for Cognizant remains largely unchanged at US$78.12. This stable outlook reflects analysts' confidence in the company's performance and prospects.
Analysts' estimates show consensus with some variation
Analysts' estimates for Cognizant range from US$94.00 to US$65.00 per share, suggesting a consensus among analysts but with some variation in their views. While there are differing opinions, overall, experts agree on the company's potential.
Below-average revenue growth for Cognizant
Comparatively, the forecasted revenue growth for Cognizant is slower than the industry average. The company's revenue growth is expected to slow down substantially to an annualized rate of 0.8% until the end of 2024. This is below the historical growth rate of 4.4% over the past five years and significantly less than the 10% annual growth forecasted for other companies in the industry. These figures indicate that Cognizant may grow slower than its industry counterparts.
Business performance in line with estimates
Despite the slower growth projections, analysts reconfirm that Cognizant is performing in line with their previous estimates. This suggests that there has been no major change in sentiment towards the company, and it continues to meet expectations.
Overall, Cognizant's full-year earnings and positive revenue projections indicate a promising outlook for the company, while its slower growth rate presents a comparative challenge. Analysts remain confident in Cognizant's performance, with the stable price target reflecting their belief in the company's continued success.
Analyst comment
Positive news: Cognizant Technology Solutions Corporation met analysts’ expectations with its full-year earnings and is expected to see a slight increase in revenue and earnings per share in 2024. The consensus price target remains stable, indicating a positive outlook for the company.
As an analyst, I expect Cognizant to maintain its steady performance, but its slower revenue growth compared to the industry average suggests it may lag behind its counterparts. However, overall sentiment towards the company remains unchanged.
