Infosys Profit Soars

The stock surges 11%.
Author:
Publish date:

Infosys Technologies

(INFY) - Get Report

jumped 11% after posting a 20% rise in fourth-quarter earnings and setting a 2-for-1 stock split.

The Bangalore, India, information technology company earned $152 million, or 54 cents a share, in the quarter ended March 31, compared with $127 million, or 46 cents a share, a year ago. Analysts surveyed by Thomson First Call were expecting earnings of 55 cents a share in the most recent quarter.

Fourth-quarter revenue rose 30.3% from a year ago to $593 million, the company said Friday.

The company expects to earn 56 cents a share to 57 cents a share in the first quarter of 2006, on revenue of $628 million to $633 million. For the year 2006, the company expects to earn $2.57 a share to $2.61 a share, on revenue of $2.76 billion to $2.80 billion. Analysts were expecting earnings of 55 cents a share and $2.51 a share, on revenue of $618.9 million and $2.8 billion for the first quarter and full year 2006.

"It took us 23 years to reach the first billion dollars in revenues while we reached the next billion dollars in 23 months," the company said. "The global IT services industry is showing signs of stronger growth and Infosys is well poised to take advantage."

Fourth-quarter gross profit rose 23.8% from a year ago to $239 million, gross margin fell 210 basis points from a year ago to 40.3%. Operating income rose 20.9% from a year ago to $156 million and operating margin fell 204 basis points to 26.3%.

This story was created through a joint venture between TheStreet.com and IRIS.