NEW YORK (TheStreet) -- Cognizant Technology Solutions (CTSH - Get Report) was falling -13.5% to $43.25 Wednesday after guiding below analysts' estimates for the third quarter, and despite beating estimates for earnings in the second quarter.
For the second quarter Cognizant reported earnings of 66 cents a share, beating the Capital IQ Consensus Estimate of 62 cents a share by 4 cents. Revenue grew 16.5% year-over-year to $2.52 billion for the quarter. Analysts expected revenue of $2.53 billion for the quarter.
Looking to the third quarter the company expects earnings of at least 63 cents a share, compared to analysts' estimates of 65 cents a share. Cognizant expects revenue of $2.55 billion to $2.58 billion for the third quarter, below analysts' estimates of $2.66 billion.
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TheStreet Ratings team rates COGNIZANT TECH SOLUTIONS as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate COGNIZANT TECH SOLUTIONS (CTSH) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. 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."