Cognizant Technology (CTSH) earnings: expect 7% revenue growth

5:14 pm ET, 01 May 2019

Cognizant Technology Solutions Corporation (CTSH) is announcing earnings on May 02, after the market closes. Wondering what revenue and earnings will look like?

What should you expect from the upcoming earnings?

Revenue for the next quarter is expected to be $4.17B, which implies 7% growth rate year-over-year.

Earnings per share are expected to come in at $1.03. If this materializes, EPS will decline -3% year-over-year.

How did the stock do last month?

Over the last month, Cognizant (CTSH) returned +3.21%.

What do analysts say about the stock?

Cognizant (CTSH) average analyst price target is 13.98% above its current price ($72.96).

For the latest price and information on Cognizant, please visit Finstead and ask for "CTSH", "CTSH analysis" or "CTSH news".

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Cognizant Technology Solutions Corporation (CTSH) Stock Guide

Updated at: 3:31 pm ET, 17 Sep 2020

Before we start: if you're looking for CTSH stock price, you can quickly find it out by visiting Finny and typing "CTSH quote". If you're looking for a quick scoop on CTSH stock (chart, price target, market cap, news and buy or sell analysis), go to Finny and look for "CTSH". You'll get all this info in one place. Or you can just type "CTSH news" to get the latest stock news.

Looking to buy or sell Cognizant Technology Solutions Corporation (CTSH)? Interested in getting the full scoop on CTSH, including earnings and dividends, stock forecast, buy or sell analysis and key stats? If so, you came to the right place.

In this CTSH stock guide, we'll address key questions about CTSH, above and beyond what you can find on Yahoo Finance, Zacks, MarketWatch or Morningstar.

Here is what you'll be able to find in this guide:

Earnings and Dividends: earnings, earnings date, dividend rate and dividend yield;
Analyst Predictions: stock forecast and analyst ratings;
Analysis: Finny Score and buy or sell analysis;
Key Stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio, industry, sector, and number of employees.

And here is the list of questions we'll answer:
1. What are CTSH earnings?
2. What is CTSH dividend?
3. What is CTSH dividend yield?
4. What is CTSH stock forecast (i.e., prediction)?
5. CTSH buy or sell? What is CTSH Finny Score?
6. What are the reasons to buy CTSH? Why should I buy CTSH stock?
7. What are the reasons to sell CTSH? Why should I sell CTSH stock?
8. What are CTSH key stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

So let's start. Scroll down to the question that interests you the most.

Earnings and Dividends

1. What are CTSH earnings?

CTSH trailing 12-month earnings per share (EPS) is $2.96.

2. What is CTSH dividend?

CTSH forward dividend is $0.88.

3. What is CTSH dividend yield?

CTSH forward dividend yield is 1.32%.

Analyst Predictions

4. What is CTSH stock forecast (i.e., prediction)?

Based on CTSH analyst price targets, CTSH stock forecast is $69.02 (for a year from now). That means the average analyst price target for CTSH stock is $69.02. The prediction is based on 33 analyst estimates.

The low price target for CTSH is $50.00, while the high price target is $79.00.

CTSH analyst rating is Buy.

Analysis

5. CTSH buy or sell? What is CTSH Finny Score?

#{finnyScore:44}Our quantitative analysis shows 4 reasons to buy and 5 reasons to sell CTSH, resulting in Finny Score of 44.

6. What are the reasons to buy CTSH? Why should I buy CTSH stock?

Here are the reasons to buy CTSH stock:

  • European companies are becoming more willing to adopt long-term outsourcing programs, given cost and staff pressures. This shift could provide a meaningful tailwind for Cognizant’s expanding European operations.
  • New virtualized business models and cloud and mobile technologies provide long-term growth opportunities for Cognizant’s emerging mobile, cloud, analytics, and social capabilities.
  • Cognizant’s focus on relationship building and management has led it to foster close ties with market-leading companies. These very sticky relationships ensure significant recurring business.
  • CTSH profitability is improving. The YoY profit margin change was 2.87 percentage points. See CTSH profitability chart.
  • CTSH forward dividend yield is 1.32%, higher than the industry (0.43%) and sector (0.26%) forward dividend yields. See CTSH forward dividend chart.
  • CTSH average analyst rating is Buy. See CTSH analyst rating chart.
  • CTSH cash to debt ratio is 1.32, higher than the average industry (0.14) and sector (0.17) cash to debt ratio. See CTSH cash to debt chart.

7. What are the reasons to sell CTSH? Why should I sell CTSH stock?

Let's look at the reasons to sell CTSH stock (i.e., the bear case):

  • Although improving, Cognizant’s brand cachet is not as strong as some of the longer established industry participants.
  • Limitations on the number of H-1B visa holders that Cognizant is allowed to employ could starve the company of much-needed IT personnel.
  • With approximately 78% of revenue generated in North America, Cognizant is highly exposed to macroeconomic conditions in the region.
  • CTSH stock price ($69.89) is close to the 52-week high ($71.15). Perhaps now is a good time to sell? See CTSH price chart.
  • CTSH quarterly revenue growth was -3.40%, lower than the industry and sector average revenue growth (1.76% and 0.89%, respectively). See CTSH revenue growth chart.
  • CTSH PEG ratio (P/E adjusted for growth) is 6.73, which is high compared to its industry peers’ PEG ratios. See CTSH PEG chart.
  • CTSH average analyst price target ($69.02) is below its current price ($69.89). See CTSH price target chart.
  • CTSH short interest (days to cover the shorts) ratio is 2.84. The stock garners more short interest than the average industry, sector or S&P 500 stock. See CTSH short interest ratio chart.

Key Stats

8. What are CTSH key stats : revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

Let's look at the key statistics for CTSH:

Metrics CTSH
Price $70.09
Average Price Target / Upside $69.02 / -1.53%
Average Analyst Rating Buy
Forward Dividend Yield 1.32%
Industry Information Technology Services
Sector Technology
Number of Employees 281,600
Market Cap $36.31B
Forward P/E Ratio 16.91
Price/Book Ratio 2.17
Revenue (TTM) $16.76B
YoY Quarterly Revenue Growth -3.40%
Profit Margin 9.67%

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