NEW YORK (TheStreet) -- Cognizant Technology Solutions (CTSH) was falling -6% to $46.26 Wednesday after guiding below analysts' estimates for the second quarter, and despite beating estimates in the first quarter.
For the first quarter Cognizant reported earnings of 62 cents a share, beating the Capital IQ Consensus Estimate of 59 cents a share by 3 cents. Revenue grew 19.9% from the year-ago quarter to $2.42 billion, while analysts expected $22.42 billion in revenue.
Looking forward to the second quarter the company expects EPS of 62 cents a share, below the Capital IQ Consensus Estimate of 63 cents a share. Cognizant expects revenue of $2.5 billion to $2.53 billion for the quarter. Analysts expect second-quarter revenue of $2.55 billion.
Must read: Warren Buffett's 10 Favorite Growth Stocks
TheStreet Ratings team rates COGNIZANT TECH SOLUTIONS as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate COGNIZANT TECH SOLUTIONS (CTSH) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."