Analysts are expecting the company to post a year over year decline in earnings and a rise in revenue for the most recent quarter.
Infosys has been forecast to report earnings of 22 cents per share on revenue of $2.33 billion by analysts surveyed by Thomson Reuters.
Last year, the company reported earnings of 89 cents per share on revenue of $2.2 billion for the fiscal 2015 second quarter.
Infosys, based in Bengaluru, India, is engaged in consulting, technology, outsourcing and next-generation services.
Shares of the company are up by 0.37% to $19.23 in late morning trading on Friday.
Separately, TheStreet Ratings team rates INFOSYS LTD as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
We rate INFOSYS LTD (INFY) 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 revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, reasonable valuation levels and notable return on equity. We feel its strengths outweigh the fact that the company shows weak operating cash flow.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 21.5%. Since the same quarter one year prior, revenues slightly increased by 5.8%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
- INFY has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 3.23, which clearly demonstrates the ability to cover short-term cash needs.
- Compared to its closing price of one year ago, INFY's share price has jumped by 25.59%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, INFY should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- INFOSYS LTD reported flat earnings per share in the most recent quarter. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, INFOSYS LTD increased its bottom line by earning $0.88 versus $0.77 in the prior year. This year, the market expects an improvement in earnings ($0.89 versus $0.88).
- You can view the full analysis from the report here: INFY