Infosys Misses Earnings Estimate

Net income rises 28% in the third quarter.
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Infosys

(INFY) - Get Report

said third-quarter earnings rose 28% from a year ago, driven by strong revenue growth and new client signups.

The India-based tech outsourcer earned $143 million, or 51 cents an American depositary share, compared with earnings of $112 million, or 40 cents an ADS, a year ago. Analysts had been forecasting 52 cents an ADS, according to Thomson First Call.

Sales rose 32.2% from a year ago to $559 million, matching estimates. The company said it added 36 new clients in the third quarter and a net 3,226 new employees.

For the quarter ending March 31, Infosys expects to earn 55 cents to 56 cents an American depositary share, although it didn't specify whether the basis was basic or diluted. Analysts were forecasting 56 cents a share on a diluted basis, according to Thomson First Call. Sales in the quarter should be $582 million to $584 million, the company said, compared with estimates of $596 million.

Shares lost $2.92, or 3.6%, to $77.72 Wednesday morning.