Net Rises at Cognizant

It beats estimates.
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Cognizant Technology Solutions

(CTSH) - Get Report

, an IT services company, reported an 88.5% rise in its fourth-quarter earnings, led by growth in revenues and an expanding client base.

The company earned $57.7 million, or 39 cents a share, in the quarter, compared with $30.6 million, or 21 cents a share, a year ago. Excluding the effect of a one-time income tax benefit, earnings were $45.3 million, or 31 cents a share. Analysts surveyed by Thomson Financial were expecting earnings of 29 cents a share.

Fourth-quarter revenue rose 48.7% from a year ago to $256.9 million. Analysts were expecting the revenue of $253.9 million.

For the first quarter of 2006, the company expects to earn 29 cents a share, including 3 cents a share of options expense, on revenue of $275 million. Analysts were projecting earnings of 30 cents a share on revenue of $265.4 million.

For the fiscal year 2006, the company expects to earn $1.30 cents a share, including 13 cents a share of options expense, on revenue of $1.26 billion. Analysts were forecasting earnings of $1.38 a share on revenue of $1.24 billion.

The Teaneck, N.J.-based IT services company added more than 9,000 employees during the year, increasing its global headcount to 24,300 employees.

"We extended our leadership position in Financial Services with the addition of two more strategic clients within the quarter, and Healthcare and Life Sciences, where Cognizant now has client relationships with seven of the world's top pharmaceutical companies and three of America's top five healthcare organizations," the company said.

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