Cognizant Technology Solutions ( CTSH) posted a nearly 52% jump in third-quarter sales Monday and a 56% hike in net income, beating analysts' estimates by a penny. But in a premarket earnings report on Monday, the offshoring firm offered fourth-quarter and full-year results basically in line with expectations. Investors who may have become accustomed to Cognizant raising guidance each quarter appeared to be focusing on the unspectacular guidance. Shares of Cognizant fell 95 cents, or 2.1%, to $44.44 in recent trading. Teaneck, N.J.-based Cognizant reported net income of $40.6 million, or 28 cents a share, in the third quarter, which ended Sept. 30. That beat the consensus estimate gathered by Thomson First Call by one penny. It also was up from net income of $26.1 million, or 18 cents a share, in the same period a year earlier. Cognizant's revenue rose 51.5% to $235.5 million from $155.4 million a year earlier. That was just slightly higher than the $233.5 million forecast by analysts. Cognizant expects fourth-quarter revenue to be at least $252 million and fourth-quarter earnings of 29 cents a share. That would bring full-year revenue to at least $881 million and earnings of $1.03. Those forecasts are slightly light on the revenue line and roughly in line with analysts' forecasts for earnings. The consensus had been calling for Cognizant to post $254.7 million in sales and 29 cents a share in earnings in the fourth quarter, and $880.5 million in sales on $1.02 in earnings for the full year. Cognizant reported 14% sequential revenue growth from financial services and insurance customers and 18% sequential revenue growth from its health care and life sciences division.
Cognizant added more than 3,100 employees in the quarter to bring its total workforce to more than 23,000.