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Cognizant from its barrio, goes on to net up 16%, with revenue at 21%

CHENNAI: Cognizant on Wednesday pronounced a profit of $324.3 million, up 16.3% from the year-ago quarter. The revenues for the quarter concluded December 2013 which stood at $2.4 billion, up 2.2% in sequence and 20.9% from the same quarter preceding year, that is. The enterprise missed street potentials when it steered to a $10.3 billion revenue for Fiscal 2014 when the consensus remained $10.4 billion. The stock shed more than 7% in initial trade.

Despite the fact that the revenue and profit for the quarter were in line with analysts’ estimates, many termed the annual revenue guidance of $10.3 billion as conservative. “It was a solid quarter, but investors may react negatively to initial 2014 guidance that is below consensus,” held a report by Bank of America Merill Lynch. Expounding further that -“It is below prior consensus of $10.40 billion and our estimate of $10.41 billion.”

The company’s 16.5% annual revenue guidance tantamounts the ensuing story that Cognizant will look to break through the $10 billion annual revenue barrier subsequent year. The company’s twelve-monthly revenue in fiscal 2013 remained at $8.84 billion. The first quarter 2014 revenue is projected to be at least $2.42 billion.

On Record, the board of directors has also affirmed a two-for-one stock split on its Class A common stock in the form of a 100% dividend. North America persisted to be the major market with a 77.2% part of quarter revenue.

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Jawed Akhtar

A Journalist by interest and a Music Enthusiast by passion. Wedded to Mother Nature, Jawed indulges his aesthetics in travelling and reading books of varied genres. Having covered News stories for top Dailies in his formative years, that is, he is game for tryst with Technology at Techmagnifier.

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