Analysts expect Cognizant’s revenue to rise 9.7% in 2017
Analysts expect Cognizant’s (CTSH) revenues to rise 9.7% YoY (year-over-year) to $14.8 billion in fiscal 2017, compared with its revenues of $13.5 billion in fiscal 2016. Revenues are also expected to rise in fiscal 2018 by 9.4% YoY to $16.2 billion.
By comparison, Cognizant’s non-GAAP (generally accepted accounting principles) EPS (earnings per share) could rise 9.1% YoY in 2017 to $3.7 and 17.6% YoY to $4.35 in fiscal 2018.
Analysts expect Cognizant’s GAAP net margin to be 13.7%, with an operating margin of 19.6%, in 2017. The firm reported a net margin of 11.5%, with an operating margin of 19.5%, in 2016.
Its profit margins are, however, expected to improve marginally in 2018 and 2019 with the expected rise in revenues. While analysts expect Cognizant’s revenues to rise 9.7% in 2018, its net margin is expected to rise to 14% with an operating margin of 20.3%.
Cognizant’s operating margin and net margin are expected to improve to 14.8% and 21.3%, respectively, in 2019, compared with its revenue growth of 9.3% YoY.