Shares up 5% since 3Q17
Shares of information technology company Cognizant (CTSH) have risen over 5% since it announced its 3Q17 results in November 2017. Cognizant reported revenue of $3.8 billion in 3Q17, a rise of 9.1% YoY (year-over-year) compared to its revenue of $3.5 billion in 3Q16.
The company’s Consulting and Technology segment’s sales drove its overall revenue with a rise of 11.3% YoY in 3Q17. Its Outsourcing segment’s revenue rose 6.1%.
Cognizant’s non-GAAP (generally accepted accounting principles) operating margin was 20% at the end of 3Q17. Its non-GAAP EPS (earnings per share) also rose 14% YoY to $0.98 in 3Q17 compared to $0.86 in 3Q16.
Major milestones in 3Q17
Cognizant is focusing on improving its cost structure and expanding its operating margins. The company aims to achieve an operating margin of 22% by the end of 2019. Cognizant completed a $1.5 billion share repurchase program and declared a dividend of $0.15 in the last quarter.
Solid growth from Cognizant’s insurance business also ensured a YoY rise in its Financial Services segment.
For 4Q17, Cognizant expects revenue of $3.80 billion–$3.85 billion with minimum EPS of $0.95. For 2017, Cognizant expects revenue of $14.78 billion–$14.84 billion with minimum non-GAAP EPS of $3.70 and an operating margin of 19.6%.