American multinational technology company Cognizant Technology Solutions Corp. (CTSH) has reported solid third-quarter 2021 results. Shares of the company rose 1.9% in early trade on Thursday.
Adjusted earnings per share (EPS) rose 9.3% year-over-year to $1.06, surpassing the Street’s estimate of $1.05 per share. (See Cognizant stock charts on TipRanks)
Total revenue soared 11.8% to $4.74 billion, marginally outpacing the consensus estimate of $4.71 billion. Financial Services revenue (32.6% of net sales) increased 5.1% to $1.54 billion. Products and Resources revenue rose 19.4% and Healthcare revenue jumped 10% to $1.35 billion.
According to the company, bookings during the quarter grew 24% year-over-year, bringing year-to-date bookings growth to 13%.
The CEO of Cognizant, Brian Humphries, said, “While the industry faces an unprecedented competition for talent, we attracted a record number of employees to Cognizant, and stayed focused on delivering against our client commitments and our strategic repositioning. We continue to make important investments to ensure Cognizant is well positioned to serve our clients as they embrace digital business models.”
Looking ahead, Cognizant expects fourth-quarter revenue to be between $4.75 billion to $4.79 billion. For full-year 2021, the company anticipates revenue of about $18.5 billion and adjusted EPS in the range of $4.02 to $4.06.
On October 28, Morgan Stanley analyst James Faucette maintained a Buy rating on the stock with a price target of $91. The price target implies 13.37% upside potential. (See Top Smart Score Stocks on TipRanks)
The Street is cautiously optimistic about the stock and has a Moderate Buy consensus rating based on 6 Buys, 3 Holds and 1 Sell. The average Cognizant price target of $84.72 implies 5.4% upside potential.
TipRanks’ Hedge Fund Trading Activity tool shows that confidence in Cognizant is currently Positive, as the cumulative change in holdings across all 13 hedge funds that were active in the last quarter was an increase of 1.8 million shares.
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