Cognizant Technology Solutions 4Q Profits Fall on Revenue Hit
February 03 2021 - 4:45PM
Dow Jones News
By Adriano Marchese
Cognizant Technology Solutions Corp. on Wednesday reported a
fall in fourth-quarter profit as revenue took a hit after the
company exited a large customer engagement in Europe during the
period.
The New Jersey professional-services firm said earnings per
share were 59 cents, down from 72 cents in the comparable quarter a
year ago. Net income was $316 million, compared with $395 million a
year ago.
Adjusted earnings were 67 cents a share, missing analyst
consensus expectations of 90 cents a share, taken from FactSet.
Sales fell to $4.18 billion from $4.3 billion. The company said
revenue was reduced by $107 million after it made an offer to a
European customer to settle and exit a customer engagement in the
financial services segment. It noted that the offer included a
proposed-one-time payment and forgiveness of certain
receivables.
In the first quarter of 2021, the company expects revenue to be
between $4.34 billion and $4.38 billion, representing a growth of
2.8% to 3.8%.
For the full year, adjusted earnings per share are forecast to
be between $3.90 and $4.02 on expected revenue of between $17.6
billion and $18.1 billion.
Write to Adriano Marchese at adriano.marchese@wsj.com
(END) Dow Jones Newswires
February 03, 2021 16:30 ET (21:30 GMT)
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