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Cognizant (CTSH) Q2 Earnings: Taking a Look at Key Metrics Versus Estimates
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For the quarter ended June 2023, Cognizant (CTSH - Free Report) reported revenue of $4.89 billion, down 0.4% over the same period last year. EPS came in at $1.10, compared to $1.14 in the year-ago quarter.
The reported revenue represents a surprise of +1.50% over the Zacks Consensus Estimate of $4.81 billion. With the consensus EPS estimate being $0.97, the EPS surprise was +13.40%.
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:
Total Headcount: 345600 versus 350926.4 estimated by two analysts on average.
Utilization - Offshore: 80% versus 80.25% estimated by two analysts on average.
Utilization - Onsite: 89% compared to the 89.13% average estimate based on two analysts.
Geographic Revenue- Europe: $967 million compared to the $918.35 million average estimate based on two analysts. The reported number represents a change of +7.1% year over year.
Geographic Revenue- Rest of World: $330 million versus $310.21 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -4.9% change.
Geographic Revenue- Continental Europe: $494 million compared to the $447.25 million average estimate based on two analysts.
Geographic Revenue- United Kingdom: $473 million versus the two-analyst average estimate of $471.10 million. The reported number represents a year-over-year change of +3.3%.
Geographic Revenue- North America: $3.59 billion versus the two-analyst average estimate of $3.61 billion. The reported number represents a year-over-year change of -1.8%.
Revenue- Financial services: $1.46 billion versus the three-analyst average estimate of $1.48 billion. The reported number represents a year-over-year change of -5.1%.
Revenue- Communications, Media and Technology: $806 million versus $801.90 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -1.2% change.
Revenue- Products and Resources: $1.18 billion versus $1.13 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +3.3% change.
Revenue- Health Sciences: $1.44 billion compared to the $1.43 billion average estimate based on three analysts. The reported number represents a change of +2.3% year over year.
Shares of Cognizant have returned +0.4% over the past month versus the Zacks S&P 500 composite's +3% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.
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Cognizant (CTSH) Q2 Earnings: Taking a Look at Key Metrics Versus Estimates
For the quarter ended June 2023, Cognizant (CTSH - Free Report) reported revenue of $4.89 billion, down 0.4% over the same period last year. EPS came in at $1.10, compared to $1.14 in the year-ago quarter.
The reported revenue represents a surprise of +1.50% over the Zacks Consensus Estimate of $4.81 billion. With the consensus EPS estimate being $0.97, the EPS surprise was +13.40%.
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:
- Total Headcount: 345600 versus 350926.4 estimated by two analysts on average.
- Utilization - Offshore: 80% versus 80.25% estimated by two analysts on average.
- Utilization - Onsite: 89% compared to the 89.13% average estimate based on two analysts.
- Geographic Revenue- Europe: $967 million compared to the $918.35 million average estimate based on two analysts. The reported number represents a change of +7.1% year over year.
- Geographic Revenue- Rest of World: $330 million versus $310.21 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -4.9% change.
- Geographic Revenue- Continental Europe: $494 million compared to the $447.25 million average estimate based on two analysts.
- Geographic Revenue- United Kingdom: $473 million versus the two-analyst average estimate of $471.10 million. The reported number represents a year-over-year change of +3.3%.
- Geographic Revenue- North America: $3.59 billion versus the two-analyst average estimate of $3.61 billion. The reported number represents a year-over-year change of -1.8%.
- Revenue- Financial services: $1.46 billion versus the three-analyst average estimate of $1.48 billion. The reported number represents a year-over-year change of -5.1%.
- Revenue- Communications, Media and Technology: $806 million versus $801.90 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -1.2% change.
- Revenue- Products and Resources: $1.18 billion versus $1.13 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +3.3% change.
- Revenue- Health Sciences: $1.44 billion compared to the $1.43 billion average estimate based on three analysts. The reported number represents a change of +2.3% year over year.
View all Key Company Metrics for Cognizant here>>>Shares of Cognizant have returned +0.4% over the past month versus the Zacks S&P 500 composite's +3% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.