NEW YORK (TheStreet) -- Shares of Infosys (INFY - Get Report) are tumbling 9.38% to $16.71 on heavy trading volume Friday morning after the Indian IT firm warned that it won't hit its previous full-year revenue target.
The company now expects revenue growth to range between 10.5% and 12% in constant currency for the fiscal year ending March 31, 2017, down from its past projection of growth between 11.5% and 13.5% for the period.
"As we look ahead to the future clearly (Brexit) is something that many banks are worried about and so forth," CEO Vishal Sikka said, according to Reuters. "In the near term we don't know how this will play out and so forth. So, given the visibility we lowered our guidance."
Banking and financial services contribute a third of the company's revenue, Reuters reports. Infosys generates about 23% of revenues from Europe-based clients.
For the quarter ended June 30, Infosys reported that consolidated net profit increased 13% to 34.36 billion Indian rupees ($513 million), up from 30.3 billion rupees a year ago. Analysts surveyed by Thomson Reuters were looking for net profit of 34.42 billion rupees.
About 8.32 million shares of Infosys have been traded so far today, well above its average trading volume of roughly 3.69 million shares per day.
Separately, TheStreet Ratings team rates the stock as a "buy" with a ratings score of A-.
Infosys' strengths such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, solid stock price performance and increase in net income outweigh the fact that the company has had somewhat disappointing return on equity.
You can view the full analysis from the report here: INFY
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 article's author.