Cognizant Tech misses by $0.13, misses on revs; guides Q2 revs below consensus; slashes FY19 EPS, revs guidance
- Reports Q1 (Mar) earnings of $0.91 per share, excluding non-recurring items, $0.13 worse than the S&P Capital IQ Consensus of $1.04; revenues rose 5.1% year/year to $4.11 bln vs the $4.16 bln S&P Capital IQ Consensus.
- Co issues downside guidance for Q2, sees Q2 revs of $4.11-4.15 bln vs. $4.29 bln S&P Capital IQ Consensus. Guidance assumes negative 130 bps for foreign exchange.
- Co lowers guidance for FY19, sees EPS of $3.87-3.95 (Prior 'At least $4.40), excluding non-recurring items, vs. $4.43 S&P Capital IQ Consensus; sees FY19 revs of $16.55-16.8 bln (+2.7-4.2% vs. previous view of +6.3-8.3%) vs. $17.34 bln S&P Capital IQ Consensus. Co now sees negative 90 bps for foreign exchange vs. prior view of negative 70 bps.
--> Few downgrades already :
Cognizant Downgraded to Sector Weight at KeyBanc
Cognizant Downgraded to Market Perform at Oppenheimer
Cognizant Downgraded to Neutral at Goldman; PT $64
Cognizant Downgraded to Underweight at JPMorgan; PT $65