Cognizant quarterly profit tops estimates

BANGALORE: IT services provider Cognizant Technology Solutions Corp reported a better-than-expected quarterly profit as financial services, its biggest market, continued to lead the recovery, and increased its outlook for the year.

Financial services contributed 43 percent to revenue in 2009.

First-quarter net income rose to $151.5 million, or 49 cents a share, from $113.1 million, or 38 cents a share, a year earlier. Excluding items, earnings were 53 cents a share.

Revenue rose 29 percent to $959.7 million.

Analysts expected earnings of 48 cents a share, excluding exceptional items, on revenue of $939.1 million.

For the year, the company forecast earnings of at least $2.26 a share, excluding items, on revenue of at least $4.1 billion.

In February, the company had forecast earnings of at least $2.19 a share, excluding items, on revenue of at least $3.94 billion.

Analysts are looking for earnings of $2.08 a share, excluding items, on revenue of $4 billion.

Shares of Cognizant closed at $52.02 Monday on Nasdaq.