Cognizant Technology Solutions Corporation offered up some mixed results Monday, as earnings for the fourth quarter topped analyst expectations, but fell short of both fourth-quarter revenue estimates and predicted first-quarter earnings estimates.The Teaneck-based provider of information technology and consulting services said in a news release that diluted earnings for the fourth quarter of 2015 came in at 80 cents per share, up from 67 cents in the fourth quarter of 2014. That exceeded the 78-cent estimate reported by the Associated Press. Net income came in at $423.4 million, or 69 cents per share, up from $362.9 million, or 59 cents per share, in the same period in 2014.
“We are pleased with our strong performance in 2015,” Francisco D’Souza, CEO, said in a prepared statement. “At a time when major technology shifts are disrupting all industries, clients are looking to a partner like Cognizant to work with them to create the winning business models of tomorrow at the intersection of the physical and digital worlds.”
However, while revenue for the quarter rose 17.9 percent, to $3.23 billion from $2.74 billion in the year-ago period, that fell short of expectations. Analysts had predicted $3.24 billion in revenue, the AP said.
For the full year 2015, diluted earnings came in at $3.07 per share, up from $2.60 per share for full-year 2014. Net income was $1.62 billion, or $2.65 per share, up from $1.44 billion, or $2.35 per share, for 2014.
Full-year revenue came in at $12.42 billion, up 21 percent from 2014’s $10.26 billion.
“In 2015, we strengthened our position as a leading digital transformation partner for our clients,” Gordon Coburn, president, said in a statement. “While digital opportunities significantly expand our addressable market, our rapidly growing consulting, infrastructure and business process services and geographic market expansion continue to be solid drivers of demand for our services.”
For the first quarter of 2016, Cognizant predicted diluted earnings of 78 to 80 cents per share. That was less than the 80 cents per share expected by analysts polled by Yahoo! Finance.
Diluted earnings for the full year are expected to be $3.32 to $3.44 per share, the company added.
It expects quarterly revenue to come in at $3.18 billion to $3.24 billion, and full-year revenue to be $13.65 billion to $14.2 billion.