Infosys Limited ( INFY Quick Quote INFY - Free Report) is scheduled to report its second-quarter fiscal 2023 results on Oct 13.
Over the trailing four quarters, this India-based IT services provider’s earnings beat the Zacks Consensus Estimate once, met the same on one occasion and missed twice, the average negative earnings surprise being 2.62%.
In the last reported quarter, Infosys’ adjusted earnings of 16 cents per share missed the Zacks Consensus Estimate by 11% and decreased 1% year over year. Revenues of $4.44 billion jumped 17.5% year over year, surpassing the consensus mark of $4.38 billion.
The Zacks Consensus Estimate for fiscal second-quarter revenues is pegged at $4.56 billion, suggesting a 14.1% increase from the year-ago period. The consensus mark for earnings stands at 18 cents per share, 5.9% higher than the year-ago quarter.
Infosys Limited Price and EPS Surprise Factors to Consider
Infosys’ fiscal second-quarter performance is likely to have benefited from stellar demand for the cloud, data-analytics solutions and services, Internet of Things and security products and solutions. Higher investments by clients in digital transformation, AI and automation are also anticipated to have been conducive to its fiscal second-quarter performance.
Continued large deal wins and growth in digital services are likely to have driven INFY’s quarterly revenues during the to-be-reported quarter. The company’s efforts to reinforce digital transformation capabilities for expanding and solidifying its position in the highly competitive environment are a steady tailwind.
Infosys added 106 clients in the first quarter of fiscal 2023. It also signed multiple large deals of contract values worth $1.7 billion.
The growing traction of its solutions and services in the commercial and corporate banks, consumer, cost and payments, wealth management, and custody and mortgage portfolios of its business is likely to have been an upside during the quarter under review.
However, inflationary pressures and possible global slowdown concerns are anticipated to have led many organizations to push their large IT investments. Inflated investments in sales and localization and rising costs to grab large deals might also hurt Infosys’ bottom line during the quarter under discussion.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for INFY this season. The combination of a positive
Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here. Infosys has an Earnings ESP of 0.00% and carries a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. Stocks With the Favorable Combination
Per our model,
Liberty Energy ( LBRT Quick Quote LBRT - Free Report) , Kimbell Royalty ( KRP Quick Quote KRP - Free Report) and Murphy USA ( MUSA Quick Quote MUSA - Free Report) have the right combination of elements to post an earnings beat in their upcoming releases.
Liberty has an Earnings ESP of +14.32% and sports a Zacks Rank #1. The company is scheduled to report its third-quarter 2022 results on Oct 19. Liberty’s earnings surpassed the Zacks Consensus Estimate in two of the trailing four quarters and missed twice, the average surprise being 31.8%. You can see
. the complete list of today’s Zacks #1 Rank stocks here
The Zacks Consensus Estimate for LBRT’s third-quarter earnings is pegged at 64 cents per share, indicating a sharp improvement from the year-ago quarter’s loss of 22 cents per share. The consensus mark for revenues stands at $1.04 billion, suggesting a 59.8% year-over-year increase.
Kimbell Royalty has an Earnings ESP of +21.88% and currently sports a Zacks Rank #1. The company is slated to report its third-quarter 2022 results on Nov 3. Kimbell’s earnings beat the Zacks Consensus Estimate twice in the preceding four quarters while missing the same on the other two occasions, the average surprise being 34.4%.
The Zacks Consensus Estimate for Kimbell’s third-quarter earnings stands at 32 cents per share, implying a year-over-year increase of 700%. KRP is estimated to report revenues of $68 million, which suggests growth of 113.8% from the year-ago quarter.
Murphy is slated to report its third-quarter 2022 results on Oct 26. The company has an Earnings ESP of +11.33% and carries a Zacks Rank #1 at present. Murphy’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 49%.
The Zacks Consensus Estimate for Murphy’s quarterly earnings is pegged at $6.71 per share, suggesting a year-over-year increase of 68.6%. MUSA’s quarterly revenues are estimated to increase 33.8% year over year to $6.16 billion.
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