This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Cognizant Beats, Shares Slide on Forecast

NEW YORK (TheStreet) -- Cognizant (CTSH - Get Report) eased past Wall Street's earnings forecast in its fourth-quarter results on Wednesday, although the consulting specialist's shares tumbled 6.63% to $90.58 on weaker-than-expected 2014 guidance.

The Teaneck, N.J.-based firm reported fourth-quarter sales of $2.355 billion, a 20.9% hike on the prior year's quarter, and in line with Wall Street's forecast of $2.36 billion. Excluding items, Cognizant earned $1.15 a share, up from 99 cents a share in the same period last year.

For the full year, Cognizant brought in revenue of $8.843 billion, up 20.4% from 2012. Analysts surveyed by Yahoo! Finance were looking for sales of $8.84 billion.

"Our growth during 2013 was broad-based across our industries, geographies and service lines," said Gordon Coburn, Cognizant's president, in a statement released before market open. "We anticipate that the healthy demand environment we witnessed in 2013 will continue into 2014 and we are well positioned to capture it."

The company's board also declared a two-for-one stock split before market open.

For its fiscal first-quarter, Cognizant expects revenue of at least $2.42 billion, in line with Wall Street consensus estimate. Excluding items, the consulting and outsourcing specialist expects earnings of $1.18 a share, although this number is prior to the impact of the upcoming stock split. Analysts surveyed by Yahoo! Finance are looking for earnings of $1.10 a share.

For 2014, however, Cognizant predicts sales of at least $10.3 billion, up at least 16.3% compared to 2013. Wall Street had forecast revenue of $10.38 billion.

Excluding items, the company expects full year earnings of at least $5.02, prior to the stock split's impact. Analysts had predicted earnings of $4.77 a share.

--Written by James Rogers in New York.

>Contact by Email.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
CTSH $63.00 0.00%
AAPL $123.25 0.00%
FB $83.30 0.00%
GOOG $548.34 0.00%
TSLA $185.00 0.00%


DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs