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Cognizant Reports Great Quarterly Results, Appoints New CEO
| 02/06/2019
American IT service provider, Cognizant Technology Solutions Corp reported its quarterly results, beating Wall Street estimates.
Cognizant records profits amidst tough competition
The company recorded better than expected profits during the last quarter, benefitting from the increase in spending by clients in the healthcare and financial sectors. Cognizant recorded profits despite tough competitions from the likes of Accenture, and other Indian IT companies like Tata Consultancy Services, Wipro and Infosys.
The company also revealed that Francisco D’Souza, its chief executive officer for over a decade would assume the role of executive vice chairman. Brian Humphries, CEO of Vodafone Business has been appointed as the new CEO starting April 1.
Humphries is a man with experience after serving as a senior executive at some top-level companies such as Dell and Hewlett Packard.
Cognizant makes its biggest income from offering IT service to banks. It, however, recorded a 1.7 percent increase in revenue in that sector, reporting $1.45 billion in the last quarter. Cognizant meanwhile saw its business in the healthcare grow by, recording a 7 percent increase in revenue in that sector. The total revenue generated from serving healthcare rose to $1.20 billion in the last quarter.
In the fourth quarter which ended on December 31, the company reported a net income of $648 million, representing $1.12 a share. This is an improvement to the $18 million loss it incurred in the previous year.
Cognizant earned $1.13 per share in consulting and outsourcing services, which is higher than the average analyst estimation of $1.07 a share. Revenue rose from $3.83 billion in the previous quarter to reach $4.13 billion and narrowly surpasses the $4.11 billion estimated by analysts.