Infosys Technologies Earnings: Here’s Why the Stock is Skyrocketing
Infosys Technologies (NASDAQ:INFY) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 16.79%.
Infosys Technologies Earnings Cheat Sheet
Results: Net income decreased -5.24% to $434 million (76 cents per diluted share) in the quarter versus a net gain of $458 million in the year-earlier quarter.
Revenue: Rose 5.76% to $1.91 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Infosys Technologies Ltd. reported adjusted net income of 76 cents per share. By that measure, the company beat the mean analyst estimate of $0.72. It beat the average revenue estimate of $1.85 billion.
Quoting Management: “We were able to maintain our margins through efficiency improvements despite increased operating expenses. We remain focused on making the right investments for profitable and sustainable growth in the longer term,” said Rajiv Bansal, Chief Financial Officer.
Revenue increased 6.29% from $1.8 billion in the previous quarter. Net income increased 0.7% from $431 million in the previous quarter.
Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.78 to a profit $0.74. For the current year, the average estimate has moved down from a profit of $3.03 to a profit of $2.95 over the last ninety days.
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(Company fundamentals provided by Xignite Financials.)