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Infosys (INFY) to Report Q1 Earnings: What's in the Offing?
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Infosys Limited (INFY - Free Report) is likely to report first-quarter fiscal 2024 results next week. Over the trailing four quarters, this India-based IT services provider’s earnings met the Zacks Consensus Estimate twice, missing the same on remaining two occasions, delivering an average negative earnings surprise of 4.1%.
In the last reported quarter, Infosys’ adjusted earnings of 18 cents per share missed the Zacks Consensus Estimate of 19 cents, while increasing 0.2% year over year. Revenues of $4.55 billion jumped 6.4% year over year and missed the consensus mark of $4.73 billion.
The Zacks Consensus Estimate for fiscal first-quarter revenues is pegged at $4.55 billion, suggesting a 2.4% increase from the year-ago period. The consensus mark for earnings is 18 cents per share, implying a 12.5% rise from that reported in the year-ago quarter.
Continued large deal wins and growth in digital services are likely to have driven INFY’s quarterly revenues in 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 have been steady tailwinds.
Infosys added 115 clients in the fourth quarter of fiscal 2023. The company also signed multiple large deals of a contract value worth $2.1 billion.
INFY’s fiscal first-quarter performance is likely to have benefited from the stellar demand for the cloud, data analytics solutions and services, Internet of Things, and security products and solutions. Also, higher investments by clients in digital transformation, artificial intelligence and automation are anticipated to have been conducive to its fiscal first-quarter performance.
The growing traction of its solutions and services in commercial and corporate banks, consumer, cost and payments, wealth management, and custody and mortgage portfolios is likely to have been an upside in the quarter under review.
However, inflated investments in sales and localization and rising costs to grab large deals are expected to have impacted Infosys’ bottom line in the quarter under discussion. Also, inflationary pressures and possible global slowdown concerns are anticipated to have led many organizations to push their large IT investments.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Infosys 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.
INFY carries a Zacks Rank #4 (Sell) and has an Earnings ESP of 0.00% at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With Favorable Combination
Per our model, Cadence Design Systems (CDNS - Free Report) , Alphabet (GOOGL - Free Report) and Tyler Technologies (TYL - Free Report) have the right combination of elements to post an earnings beat in upcoming releases.
Cadence has an Earnings ESP of +0.67% and sports a Zacks Rank #1 at present. The company is scheduled to report its second-quarter 2023 results on Jul 24. CDNS’ earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 7.3%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for CDNS’ second-quarter earnings is pegged at $1.18 per share, indicating a 9.3% surge from the year-ago quarter’s $1.08. The consensus mark for revenues is pegged at $973.22 million, suggesting a year-over-year increase of 13.5%.
Currently, Alaphabet has an Earnings ESP of +1.62% and carries a Zacks Rank #2. The company is expected to report its second-quarter 2023 results on Jul 25. GOOGL’s earnings surpassed the Zacks Consensus Estimate in one of the preceding four quarters, missing thrice and delivering an average negative earnings surprise of 4.4%.
The Zacks Consensus Estimate for GOOGL’s second-quarter earnings is $1.32 per share, implying a year-over-year surge of 9.1%. The company is estimated to report revenues of $60.23 billion, which suggests a surge of 4.8% from the year-ago quarter.
Tyler has an Earnings ESP of +0.54% and flaunts a Zacks Rank #1 at present. The company is set to report second-quarter 2023 results on Jul 26. TYL’s earnings beat the Zacks Consensus Estimate in three of the preceding four quarters, missing once, the average surprise being 2.8%.
The Zacks Consensus Estimate for TYL’s quarterly earnings is pegged at $1.86 per share, suggesting a year-over-year decrease of 1.1%. Its quarterly revenues are estimated to increase 4.7% year over year to $490.7 million.
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Infosys (INFY) to Report Q1 Earnings: What's in the Offing?
Infosys Limited (INFY - Free Report) is likely to report first-quarter fiscal 2024 results next week. Over the trailing four quarters, this India-based IT services provider’s earnings met the Zacks Consensus Estimate twice, missing the same on remaining two occasions, delivering an average negative earnings surprise of 4.1%.
In the last reported quarter, Infosys’ adjusted earnings of 18 cents per share missed the Zacks Consensus Estimate of 19 cents, while increasing 0.2% year over year. Revenues of $4.55 billion jumped 6.4% year over year and missed the consensus mark of $4.73 billion.
The Zacks Consensus Estimate for fiscal first-quarter revenues is pegged at $4.55 billion, suggesting a 2.4% increase from the year-ago period. The consensus mark for earnings is 18 cents per share, implying a 12.5% rise from that reported in the year-ago quarter.
Infosys Price and EPS Surprise
Infosys price-eps-surprise | Infosys Quote
Factors to Consider
Continued large deal wins and growth in digital services are likely to have driven INFY’s quarterly revenues in 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 have been steady tailwinds.
Infosys added 115 clients in the fourth quarter of fiscal 2023. The company also signed multiple large deals of a contract value worth $2.1 billion.
INFY’s fiscal first-quarter performance is likely to have benefited from the stellar demand for the cloud, data analytics solutions and services, Internet of Things, and security products and solutions. Also, higher investments by clients in digital transformation, artificial intelligence and automation are anticipated to have been conducive to its fiscal first-quarter performance.
The growing traction of its solutions and services in commercial and corporate banks, consumer, cost and payments, wealth management, and custody and mortgage portfolios is likely to have been an upside in the quarter under review.
However, inflated investments in sales and localization and rising costs to grab large deals are expected to have impacted Infosys’ bottom line in the quarter under discussion. Also, inflationary pressures and possible global slowdown concerns are anticipated to have led many organizations to push their large IT investments.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Infosys 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.
INFY carries a Zacks Rank #4 (Sell) and has an Earnings ESP of 0.00% at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With Favorable Combination
Per our model, Cadence Design Systems (CDNS - Free Report) , Alphabet (GOOGL - Free Report) and Tyler Technologies (TYL - Free Report) have the right combination of elements to post an earnings beat in upcoming releases.
Cadence has an Earnings ESP of +0.67% and sports a Zacks Rank #1 at present. The company is scheduled to report its second-quarter 2023 results on Jul 24. CDNS’ earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 7.3%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for CDNS’ second-quarter earnings is pegged at $1.18 per share, indicating a 9.3% surge from the year-ago quarter’s $1.08. The consensus mark for revenues is pegged at $973.22 million, suggesting a year-over-year increase of 13.5%.
Currently, Alaphabet has an Earnings ESP of +1.62% and carries a Zacks Rank #2. The company is expected to report its second-quarter 2023 results on Jul 25. GOOGL’s earnings surpassed the Zacks Consensus Estimate in one of the preceding four quarters, missing thrice and delivering an average negative earnings surprise of 4.4%.
The Zacks Consensus Estimate for GOOGL’s second-quarter earnings is $1.32 per share, implying a year-over-year surge of 9.1%. The company is estimated to report revenues of $60.23 billion, which suggests a surge of 4.8% from the year-ago quarter.
Tyler has an Earnings ESP of +0.54% and flaunts a Zacks Rank #1 at present. The company is set to report second-quarter 2023 results on Jul 26. TYL’s earnings beat the Zacks Consensus Estimate in three of the preceding four quarters, missing once, the average surprise being 2.8%.
The Zacks Consensus Estimate for TYL’s quarterly earnings is pegged at $1.86 per share, suggesting a year-over-year decrease of 1.1%. Its quarterly revenues are estimated to increase 4.7% year over year to $490.7 million.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.