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Infosys (INFY) Q3 Earnings & Revenues Top Estimates, Up Y/Y
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Shares of Infosys (INFY - Free Report) were trading 4.3% higher during the pre-market trading session on Wednesday after the India-based IT consulting and outsourcing company reported better-than-expected third-quarter fiscal 2021 results.
The company’s fiscal third-quarter adjusted earnings of 17 cents per share surpassed the Zacks Consensus Estimate of 15 cents. Moreover, quarterly earnings jumped 13.3% from the year-ago quarter’s earnings per share of 15 cents.
Infosys’ fiscal third-quarter revenues increased 8.4% to $3.52 billion year over year and topped the Zacks Consensus Estimate of $3.38 billion as well. In terms of constant currency (CC), the metric was up 6.6%.
Rise in large deal wins and fast-growing digital services were key catalysts. Solid demand for its services in cloud, IoT, cyber security, SaaS, user experience, data and analytics is a major driver.
Digital Revenues (50% of total) climbed 33.6% year over year (31.3% at cc) to $1.76 billion, while Core Revenues (50%) declined 8.8% (down 10.3% at cc) to $1.76 billion.
The company recorded revenue growth across all of its geographical regions. Revenues across North America, Europe, and Rest of the World regions recorded year-over-year increase of 8.9%, 6.8%, and 10.7%, respectively, on a reported basis. On a constant-currency basis, the regions registered respective growth of 8.8%, 1.3%, and 6.1%. India witnessed growth of 1.7% on a reported basis and 4.3% on CC.
Segment wise, Hi Tech registered the highest growth of 17.6%. Life Sciences, Financial Services, and Retail jumped 13.2%, 13.9% and 4%, respectively. Communication, and Energy, Utilities, Resources & Services recorded a decline of 3.4% and 6.5%, respectively. However, revenues from the Manufacturing division edged down 1.9%.
The company added 139 clients during the fiscal third quarter. It also signed multiple large deals of contract value (TCV) worth $7.13 billion. The TCV recorded during the reported quarter was the highest ever in the company’s history.
The company reported that its clients worth more than $100 million now add up to 29, down from the second-quarter number of 30 clients.
Other Financial Details
Gross profit climbed 14.5% year on year to $1.24 billion. Gross margin expanded 190 basis points (bps) on a year-over-year basis to 35.3%.
The company’s operating income jumped 25.6% to $893 million, year over year. Operating margin expanded 350 bps to 25.4%.
Infosys ended the fiscal third quarter with cash and cash equivalents of $3.48 billion, up from the fiscal second-quarter level of $3.04 billion.
The long-term earnings growth rate for Micron, Dell and NetApp is currently pegged at 12.7%, 12%, and 11.9%, respectively.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
Infosys (INFY) Q3 Earnings & Revenues Top Estimates, Up Y/Y
Shares of Infosys (INFY - Free Report) were trading 4.3% higher during the pre-market trading session on Wednesday after the India-based IT consulting and outsourcing company reported better-than-expected third-quarter fiscal 2021 results.
The company’s fiscal third-quarter adjusted earnings of 17 cents per share surpassed the Zacks Consensus Estimate of 15 cents. Moreover, quarterly earnings jumped 13.3% from the year-ago quarter’s earnings per share of 15 cents.
Infosys’ fiscal third-quarter revenues increased 8.4% to $3.52 billion year over year and topped the Zacks Consensus Estimate of $3.38 billion as well. In terms of constant currency (CC), the metric was up 6.6%.
Rise in large deal wins and fast-growing digital services were key catalysts. Solid demand for its services in cloud, IoT, cyber security, SaaS, user experience, data and analytics is a major driver.
Infosys Limited Price and Consensus
Infosys Limited price-consensus-chart | Infosys Limited Quote
Revenue Details
Digital Revenues (50% of total) climbed 33.6% year over year (31.3% at cc) to $1.76 billion, while Core Revenues (50%) declined 8.8% (down 10.3% at cc) to $1.76 billion.
The company recorded revenue growth across all of its geographical regions. Revenues across North America, Europe, and Rest of the World regions recorded year-over-year increase of 8.9%, 6.8%, and 10.7%, respectively, on a reported basis. On a constant-currency basis, the regions registered respective growth of 8.8%, 1.3%, and 6.1%. India witnessed growth of 1.7% on a reported basis and 4.3% on CC.
Segment wise, Hi Tech registered the highest growth of 17.6%. Life Sciences, Financial Services, and Retail jumped 13.2%, 13.9% and 4%, respectively. Communication, and Energy, Utilities, Resources & Services recorded a decline of 3.4% and 6.5%, respectively. However, revenues from the Manufacturing division edged down 1.9%.
The company added 139 clients during the fiscal third quarter. It also signed multiple large deals of contract value (TCV) worth $7.13 billion. The TCV recorded during the reported quarter was the highest ever in the company’s history.
The company reported that its clients worth more than $100 million now add up to 29, down from the second-quarter number of 30 clients.
Other Financial Details
Gross profit climbed 14.5% year on year to $1.24 billion. Gross margin expanded 190 basis points (bps) on a year-over-year basis to 35.3%.
The company’s operating income jumped 25.6% to $893 million, year over year. Operating margin expanded 350 bps to 25.4%.
Infosys ended the fiscal third quarter with cash and cash equivalents of $3.48 billion, up from the fiscal second-quarter level of $3.04 billion.
Zacks Rank and Other Stocks to Consider
Infosys currently carries a Zacks Rank #2 (Buy).
Other top-ranked stocks in the broader technology sector include Micron (MU - Free Report) , Dell Technologies (DELL - Free Report) and NetApp (NTAP - Free Report) , all sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The long-term earnings growth rate for Micron, Dell and NetApp is currently pegged at 12.7%, 12%, and 11.9%, respectively.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>