Zacks: Analysts Expect Cognizant Technology Solutions Corp (CTSH) Will Announce Quarterly Sales of $4.08 Billion

Analysts expect Cognizant Technology Solutions Corp (NASDAQ:CTSH) to announce $4.08 billion in sales for the current fiscal quarter, Zacks Investment Research reports. Eight analysts have issued estimates for Cognizant Technology Solutions’ earnings, with the highest sales estimate coming in at $4.10 billion and the lowest estimate coming in at $4.07 billion. Cognizant Technology Solutions reported sales of $3.77 billion during the same quarter last year, which would suggest a positive year-over-year growth rate of 8.2%. The firm is expected to report its next quarterly earnings report on Wednesday, November 7th.

According to Zacks, analysts expect that Cognizant Technology Solutions will report full-year sales of $16.16 billion for the current financial year, with estimates ranging from $16.12 billion to $16.24 billion. For the next financial year, analysts expect that the firm will report sales of $17.48 billion per share, with estimates ranging from $17.14 billion to $17.63 billion. Zacks’ sales averages are a mean average based on a survey of research analysts that cover Cognizant Technology Solutions.

Cognizant Technology Solutions (NASDAQ:CTSH) last posted its earnings results on Thursday, August 2nd. The information technology service provider reported $1.19 EPS for the quarter, topping analysts’ consensus estimates of $1.10 by $0.09. The company had revenue of $4.01 billion for the quarter, compared to the consensus estimate of $4.03 billion. Cognizant Technology Solutions had a return on equity of 21.66% and a net margin of 9.37%. The firm’s revenue for the quarter was up 9.2% on a year-over-year basis. During the same period in the previous year, the business earned $0.93 earnings per share.

CTSH has been the topic of a number of research analyst reports. Bank of America downgraded Cognizant Technology Solutions from a “buy” rating to an “underperform” rating and decreased their target price for the stock from $91.00 to $81.00 in a research report on Tuesday, September 4th. Zacks Investment Research downgraded Cognizant Technology Solutions from a “hold” rating to a “sell” rating in a research report on Monday, July 9th. JPMorgan Chase & Co. downgraded Cognizant Technology Solutions from an “overweight” rating to a “neutral” rating and set a $66.00 price objective on the stock. in a research report on Tuesday, August 14th. BidaskClub downgraded Cognizant Technology Solutions from a “buy” rating to a “hold” rating in a research report on Tuesday, June 26th. Finally, Cowen restated a “buy” rating and set a $87.00 price objective on shares of Cognizant Technology Solutions in a research report on Friday, August 3rd. Two investment analysts have rated the stock with a sell rating, seven have given a hold rating, seventeen have assigned a buy rating and two have issued a strong buy rating to the company. Cognizant Technology Solutions has a consensus rating of “Buy” and a consensus target price of $85.18.

In other news, CFO Karen Mcloughlin sold 4,983 shares of the company’s stock in a transaction that occurred on Thursday, July 12th. The stock was sold at an average price of $82.04, for a total transaction of $408,805.32. Following the transaction, the chief financial officer now owns 43,887 shares of the company’s stock, valued at $3,600,489.48. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, insider Sean Middleton sold 439 shares of the company’s stock in a transaction that occurred on Tuesday, September 18th. The shares were sold at an average price of $76.28, for a total value of $33,486.92. Following the transaction, the insider now directly owns 5,135 shares in the company, valued at approximately $391,697.80. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 55,238 shares of company stock worth $4,264,970. Insiders own 0.60% of the company’s stock.

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. BlackRock Inc. grew its stake in shares of Cognizant Technology Solutions by 6.9% during the second quarter. BlackRock Inc. now owns 42,845,471 shares of the information technology service provider’s stock valued at $3,384,363,000 after buying an additional 2,775,975 shares during the last quarter. Bank of New York Mellon Corp grew its stake in shares of Cognizant Technology Solutions by 4.8% during the second quarter. Bank of New York Mellon Corp now owns 18,273,087 shares of the information technology service provider’s stock valued at $1,443,390,000 after buying an additional 836,521 shares during the last quarter. Edgewood Management LLC grew its stake in shares of Cognizant Technology Solutions by 2.3% during the second quarter. Edgewood Management LLC now owns 18,137,904 shares of the information technology service provider’s stock valued at $1,432,713,000 after buying an additional 414,390 shares during the last quarter. Franklin Resources Inc. grew its stake in shares of Cognizant Technology Solutions by 0.7% during the first quarter. Franklin Resources Inc. now owns 10,892,663 shares of the information technology service provider’s stock valued at $876,853,000 after buying an additional 77,616 shares during the last quarter. Finally, Northern Trust Corp grew its stake in Cognizant Technology Solutions by 3.8% in the second quarter. Northern Trust Corp now owns 7,277,524 shares of the information technology service provider’s stock worth $574,852,000 after purchasing an additional 269,366 shares in the last quarter. 87.88% of the stock is currently owned by hedge funds and other institutional investors.

Shares of NASDAQ:CTSH traded up $0.44 during mid-day trading on Wednesday, reaching $77.61. The stock had a trading volume of 5,352,945 shares, compared to its average volume of 2,833,453. The company has a current ratio of 3.27, a quick ratio of 3.27 and a debt-to-equity ratio of 0.06. The company has a market capitalization of $44.78 billion, a P/E ratio of 21.99, a P/E/G ratio of 1.42 and a beta of 0.94. Cognizant Technology Solutions has a 1 year low of $69.69 and a 1 year high of $85.10.

The firm also recently announced a quarterly dividend, which was paid on Friday, August 31st. Stockholders of record on Wednesday, August 22nd were paid a dividend of $0.20 per share. The ex-dividend date was Tuesday, August 21st. This represents a $0.80 dividend on an annualized basis and a dividend yield of 1.03%. Cognizant Technology Solutions’s dividend payout ratio is 22.66%.

About Cognizant Technology Solutions

Cognizant Technology Solutions Corporation, a professional services company, provides consulting and technology, and outsourcing services worldwide. The company operates through four segments: Financial Services; Healthcare; Products and Resources; and Communications, Media and Technology. It offers business, process, operations, and technology consulting services; application design and development, and systems integration services; application testing, consulting, and engineering services; and enterprise information management services.

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