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The company expects third-quarter 2023 revenues between $4.89 billion and $4.94 billion, indicating a decline of 0.5% to an increase of 0.5% on a cc basis. Favorable forex is expected to aid the top line by 110 basis points (bps), while acquisitions are expected to contribute 100 bps.
The Zacks Consensus Estimate for revenues is pegged at $4.9 billion, suggesting an increase of 0.92% year over year.
The consensus mark for third-quarter earnings has declined a penny to $1.08 per share over the past 30 days, suggesting a year-over-year decline of 7.69%.
Cognizant beat the Zacks Consensus Estimate for earnings in two of the trailing four quarters, matching in the other two, the average surprise being 4.78%.
Cognizant Technology Solutions Corporation Price and EPS Surprise
Let’s see how things have shaped up for the upcoming announcement.
Factors to Note
Cognizant’s third-quarter 2023 performance is likely to have benefited from significant growth in its digital business operations. It has been benefiting from an expanding partner base as companies worldwide are accelerating digital transformation.
The high demand across its Healthcare segment has been noteworthy. Our model estimate for third-quarter 2023 Healthcare revenues is pegged at $1.45 billion, indicating 3.3% year-over-year growth.
Cognizant banks on a long-standing client relationship, robust product pipeline and a global delivery network.
However, challenging macroeconomic conditions, raging inflation and stiff competition are expected to have hurt top-line growth.
Softer discretionary spending and decision delays by existing and potential clients are expected to have hurt Financial Services and Communications, Media & Technology (CMT) solutions.
Our model estimate for third-quarter 2023 Financial Services is pegged at $1.55 billion, indicating 1.7% year over year growth. However, CMT revenues are pegged at $722.6 million, indicating a 7.7% year-over-year decline.
What Our Model Says
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That’s the exact case here.
Cognizant currently has an Earnings ESP of +3.55% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks to Consider
Here are a few other companies worth considering, as our model shows that these, too, have the right combination of elements to beat on earnings in their upcoming releases:
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Cognizant (CTSH) to Report Q3 Earnings: What's in Store?
Cognizant Technology Solutions (CTSH - Free Report) is scheduled to report its third-quarter 2023 results on Nov 1.
The company expects third-quarter 2023 revenues between $4.89 billion and $4.94 billion, indicating a decline of 0.5% to an increase of 0.5% on a cc basis. Favorable forex is expected to aid the top line by 110 basis points (bps), while acquisitions are expected to contribute 100 bps.
The Zacks Consensus Estimate for revenues is pegged at $4.9 billion, suggesting an increase of 0.92% year over year.
The consensus mark for third-quarter earnings has declined a penny to $1.08 per share over the past 30 days, suggesting a year-over-year decline of 7.69%.
Cognizant beat the Zacks Consensus Estimate for earnings in two of the trailing four quarters, matching in the other two, the average surprise being 4.78%.
Cognizant Technology Solutions Corporation Price and EPS Surprise
Cognizant Technology Solutions Corporation price-eps-surprise | Cognizant Technology Solutions Corporation Quote
Let’s see how things have shaped up for the upcoming announcement.
Factors to Note
Cognizant’s third-quarter 2023 performance is likely to have benefited from significant growth in its digital business operations. It has been benefiting from an expanding partner base as companies worldwide are accelerating digital transformation.
The high demand across its Healthcare segment has been noteworthy. Our model estimate for third-quarter 2023 Healthcare revenues is pegged at $1.45 billion, indicating 3.3% year-over-year growth.
Cognizant banks on a long-standing client relationship, robust product pipeline and a global delivery network.
However, challenging macroeconomic conditions, raging inflation and stiff competition are expected to have hurt top-line growth.
Softer discretionary spending and decision delays by existing and potential clients are expected to have hurt Financial Services and Communications, Media & Technology (CMT) solutions.
Our model estimate for third-quarter 2023 Financial Services is pegged at $1.55 billion, indicating 1.7% year over year growth. However, CMT revenues are pegged at $722.6 million, indicating a 7.7% year-over-year decline.
What Our Model Says
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That’s the exact case here.
Cognizant currently has an Earnings ESP of +3.55% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks to Consider
Here are a few other companies worth considering, as our model shows that these, too, have the right combination of elements to beat on earnings in their upcoming releases:
GoDaddy (GDDY - Free Report) has an Earnings ESP of +8.11% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
GoDaddy shares have declined 4.2% in the year-to-date period. GDDY is set to report its third-quarter 2023 results on Nov 2.
Itron (ITRI - Free Report) has an Earnings ESP of +23.18% and a Zacks Rank of 1 at present.
Itron shares have gained 12.9% in the year-to-date period. ITRI is set to report its third-quarter 2023 results on Nov 2.
Qorvo (QRVO - Free Report) has an Earnings ESP of +4.46% and a Zacks Rank #1.
Qorvo shares have declined 4.6% year to date. QRVO is set to report its second-quarter fiscal 2024 results on Nov 1.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.