Cognizant Shares Climb on Consulting Strength

NEW YORK ( TheStreet) -- Cognizant ( CTSH) continued its run of strong results before market open on Tuesday, lifted by strong demand for consulting and outsourcing services.

The Teaneck, N.J.-based firm reported revenue of $2.31 billion, a 21.9% hike on the prior year's quarter and above Wall Street's estimate of $2.26 billion. Excluding items, Cognizant earned $1.13 a share, up from 98 cents a share in the same period last year. Analysts surveyed by Thomson Reuters were looking for earnings of $1.01 a share.

Cognizant shares, which have gained more than 18% over the last three months, rose 2.49% to $89.01 in pre-market trading.

"Our performance during the quarter was stronger than anticipated due to a faster ramp up in demand for outsourcing services and strong discretionary spend on consulting and technology services," said Gordon Coburn, Cognizant's president, in a statement.

With demand for its services increasing, Cognizant raised its full-year guidance to at least $8.84 billion from its prior forecast of $8.74 billion. Analysts surveyed by Yahoo! Finance are looking for sales of $8.76 billion. The outsourcer also hiked its earnings projection to $4.37 a share, compared to its prior forecast of $4.32 a share. Wall Street is looking for earnings of $3.98 a share.

The company increased its total cash and short-term investments by $460 million to $3.4 billion.

--Written by James Rogers in New York

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