Cognizant Technology Solutions
(CTSH - Get Report)
is engaged in providing customized information technology solutions and outsourcing services.
On a year-to-date basis, the company soared 61.2%, touching 52-week highs in December. In comparison,
(INFY - Get Report)
(WIT - Get Report)
gained 37.1% and 15.3%, respectively, on year-to-date basis.
For the third quarter, the company posted an increase of 43% and 49.1% in revenue and net profit, to $1.21 billion and $204 million, respectively, as compared to the same quarter a year ago. During October, the company signed a multi-year, multi-million dollar agreement with
. With this agreement, Cognizant will leverage its best practices and frameworks in order to reduce the total cost of ownership and ensure high quality and consistency across the 3M portfolio, including mission-critical software. The company announced a joint development program with
for delivering cloud-enabled solutions to enterprise customers.
Looking ahead into the fourth quarter, the company expects to record revenue of $1.27 billion. For full-year 2010, Cognizant raised its revenue guidance to $4.55 billion from the earlier estimate of $4.46 billion on diluted earnings per share of $2.35.
The company's board of directors recently authorized a share repurchase program valued almost at $150 million of the company's common stock in the upcoming 12 months. Moreover, the outlook for information technology seems favorable, based on the spending environment in the U.S. and huge cash balances available for IT spending at various companies.