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Will Cognizant Beat Analysts’ Estimates in 4Q17?

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Feb. 1 2018, Published 11:49 a.m. ET

Revenue estimate of $3.8 billion in 4Q17

Cognizant (CTSH) plans to announce its 4Q17 results on February 7, 2018. Analysts expect Cognizant to post revenue of $3.8 billion. Wall Street has a low revenue estimate of $3.8 billion and a high estimate of $3.9 billion for Cognizant in 4Q17.

If Cognizant meets the average revenue estimate of $3.8 billion, it would mean a YoY (year-over-year) rise of 10.4% compared to its revenue of $3.5 billion in 4Q16.

Analysts expect CTSH to post non-GAAP (generally accepted accounting principles) EPS (earnings per share) of $0.97 with a low estimate of $0.94 and a high estimate of $1.03. In 4Q16, Cognizant reported EPS of $0.87.

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CTSH beat earnings estimates in the last four quarters

As we can see in the chart above, Cognizant has beaten analysts’ average EPS estimates in each of the last four quarters. The company posted EPS of $0.98 in 3Q17, beating the estimate of $0.96 by 2.1%. The company also posted EPS of $0.93, $0.84, and $0.87 in 2Q17, 1Q17, and 4Q16, respectively, beating estimates by 2.2%, 1.2%, and 1.2%, respectively.

Driven by four consecutive quarters of earnings beats, Cognizant stock rose over 27% in 2017. The shares of Cognizant’s peers Accenture (ACN), IBM (IBM), and Teradata (TDC) rose 33%, -4%, and 42%, respectively, in 2017.

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