NEW YORK (TheStreet) -- Cognizant Technology Solutions (CTSH - Get Report) stock is down by 7.31% to $54.26 in early-morning trading on Monday, after the company provided lower-than-expected 2016 first quarter earnings guidance.
Before the market open today, the Teaneck, NJ-based IT provider reported earnings of 80 cents per share, compared to analysts forecasts for earnings of 78 cents a share. Revenue of $3.23 billion was slightly below analysts' forecasts for revenue of $3.24 billion.
Cognizant projected 2016 first quarter adjusted earnings between 78 cents per share to 80 cents per share, lower than analysts' forecasts for earnings of 81 cents per share.
Additionally, the company estimated first quarter revenue between $3.18 billion to $3.24 billion, while analysts had estimated revenue of $3.3 billion for the quarter.
Separately, recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings rates this stock as a "buy" with a ratings score of B+. 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, growth in earnings per share, increase in net income and good cash flow from operations. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.
You can view the full analysis from the report here: CTSHCTSH data by YCharts