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The company said it expected current-quarter revenue to be
between $4.09 billion to $4.13 billion and profit to be at least
$1.05 per share, missing analysts' average estimate of $1.14 per
share on revenue of $4.17 billion, according to Refinitiv data.
The company's reliance on financial services sector has been
hurting its overall revenue growth in the past few quarters.
While services to big banks remains its biggest source of
income, revenue in this sector rose just 2.6 percent to $1.46
billion in the third quarter, missing expectation of $1.50
billion.
Cognizant has been increasingly focusing on cloud computing,
cyber-security and analytics consulting to reduce its dependence
on traditional technologies to service finance and healthcare
sectors, where margins are falling as clients demand more work
for less money.
To beef up digital and cloud services, the company in the recent
quarters also embarked on an acquisition spree and most recently
bought app developer Softvision in a $550 million deal.
Cognizant said its revenue from healthcare services grew 9.6
percent to $1.19 billion, in line with analysts' estimates.
The company's net income fell to $477 million, or 82 cents per
share, in the third quarter ended Sept. 30, from $495 million,
or 84 cents per share, a year earlier.
Excluding items, Cognizant earned $1.19 per share. Revenue rose
to $4.08 billion from $3.77 billion.
Analysts on an average had expected profit of $1.13 per share
and revenue of $4.08 billion.
(Reporting by Arjun Panchadar in Bengaluru; Editing by Arun
Koyyur)
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