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Cognizant (CTSH) Reports Q4 Earnings: What Key Metrics Have to Say
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For the quarter ended December 2023, Cognizant (CTSH - Free Report) reported revenue of $4.76 billion, down 1.7% over the same period last year. EPS came in at $1.18, compared to $1.01 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $4.76 billion, representing a surprise of -0.08%. The company delivered an EPS surprise of +13.46%, with the consensus EPS estimate being $1.04.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Cognizant performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Utilization - Onsite: 88% compared to the 88.8% average estimate based on two analysts.
Total Headcount: 347,700 versus 346,093 estimated by two analysts on average.
Utilization - Offshore: 79% versus 79% estimated by two analysts on average.
Geographic Revenue- North America: $3.53 billion versus $3.54 billion estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -1.6% change.
Geographic Revenue- United Kingdom: $448 million compared to the $471.52 million average estimate based on two analysts. The reported number represents a change of -1.1% year over year.
Geographic Revenue- Rest of World: $310 million versus $294.26 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -9.9% change.
Geographic Revenue- Europe: $918 million versus the two-analyst average estimate of $930.80 million. The reported number represents a year-over-year change of +1.3%.
Geographic Revenue- Continental Europe: $470 million versus $459.28 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +3.8% change.
Revenue- Products and Resources: $1.16 billion compared to the $1.16 billion average estimate based on three analysts. The reported number represents a change of +1.3% year over year.
Revenue- Health Sciences: $1.40 billion compared to the $1.44 billion average estimate based on three analysts. The reported number represents a change of -2.1% year over year.
Revenue- Financial services: $1.40 billion versus $1.45 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -5.8% change.
Revenue- Communications, Media and Technology: $804 million versus the three-analyst average estimate of $719.88 million. The reported number represents a year-over-year change of +2.6%.
Shares of Cognizant have returned +5.3% over the past month versus the Zacks S&P 500 composite's +5.3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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Cognizant (CTSH) Reports Q4 Earnings: What Key Metrics Have to Say
For the quarter ended December 2023, Cognizant (CTSH - Free Report) reported revenue of $4.76 billion, down 1.7% over the same period last year. EPS came in at $1.18, compared to $1.01 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $4.76 billion, representing a surprise of -0.08%. The company delivered an EPS surprise of +13.46%, with the consensus EPS estimate being $1.04.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Cognizant performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Utilization - Onsite: 88% compared to the 88.8% average estimate based on two analysts.
- Total Headcount: 347,700 versus 346,093 estimated by two analysts on average.
- Utilization - Offshore: 79% versus 79% estimated by two analysts on average.
- Geographic Revenue- North America: $3.53 billion versus $3.54 billion estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -1.6% change.
- Geographic Revenue- United Kingdom: $448 million compared to the $471.52 million average estimate based on two analysts. The reported number represents a change of -1.1% year over year.
- Geographic Revenue- Rest of World: $310 million versus $294.26 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -9.9% change.
- Geographic Revenue- Europe: $918 million versus the two-analyst average estimate of $930.80 million. The reported number represents a year-over-year change of +1.3%.
- Geographic Revenue- Continental Europe: $470 million versus $459.28 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +3.8% change.
- Revenue- Products and Resources: $1.16 billion compared to the $1.16 billion average estimate based on three analysts. The reported number represents a change of +1.3% year over year.
- Revenue- Health Sciences: $1.40 billion compared to the $1.44 billion average estimate based on three analysts. The reported number represents a change of -2.1% year over year.
- Revenue- Financial services: $1.40 billion versus $1.45 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -5.8% change.
- Revenue- Communications, Media and Technology: $804 million versus the three-analyst average estimate of $719.88 million. The reported number represents a year-over-year change of +2.6%.
View all Key Company Metrics for Cognizant here>>>Shares of Cognizant have returned +5.3% over the past month versus the Zacks S&P 500 composite's +5.3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.