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Over the trailing four quarters, this India-based IT services provider’s earnings met the Zacks Consensus Estimate once, surpassed on one occasion and missed twice, delivering an average negative surprise of 1.2%.
In the last reported quarter, Infosys’ adjusted earnings of 18 cents per share surpassed the Zacks Consensus Estimate of 17 cents but came a penny lower from the year-ago quarter’s earnings of 19 cents. Third-quarter fiscal 2024 revenues were flat year over year at $4.66 billion but surpassed the consensus mark of $4.58 billion.
The Zacks Consensus Estimate for fiscal fourth-quarter revenues is pegged at $4.49 billion, which indicates a marginal 1.4% decrease from the year-ago period’s level. The consensus mark for earnings stands at 17 cents per share, a penny lower than the year-ago quarter.
Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.
Infosys’ fourth-quarter results are likely to reflect the negative impact of slowing IT spending as organizations are postponing their plans of investing in big and expensive technology products. They are doing so due to growing global slowdown concerns amid persistent macroeconomic headwinds and geopolitical tensions.
The company has been witnessing continued softness across its Financial Services business unit owing to delayed decision-making by its clients. Though clients are focusing on leveraging artificial intelligence (AI) to accelerate digital transformation, long decision cycles are likely to have negatively impacted INFY’s Retail segment’s fourth-quarter top line.
Budget cuts, slow ramp-up and delayed decision-making for new spending amid ongoing macroeconomic headwinds are anticipated to have hurt the Communication business unit’s performance in the quarter.
Despite headwinds from slow decision-making, increased spending toward large-scale transformation programs, such as enhancing digital capabilities for energy transition and achieving net zero emission, is expected to boost Infosys’ Energy, Utilities, Resources and Services vertical performance in the fourth quarter.
Accelerated transition to the cloud and a focus on increasing productivity by switching to smart factories and products are likely to have boosted the Manufacturing business unit’s revenues in the to-be-reported quarter.
Additionally, inflated investments in sales and localization and rising costs to grab large deals are expected to have impacted Infosys’ bottom line in the to-be-reported quarter.
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.
Though INFY has an Earnings ESP of +4.85%, it 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, Vertiv (VRT - Free Report) , Meta Platforms (META - Free Report) and Lam Research (LRCX - Free Report) have the right combination of elements to post an earnings beat in their upcoming releases.
Vertiv sports a Zacks Rank #1 and has an Earnings ESP of +1.72%. The company is scheduled to report first-quarter 2024 results on Apr 24. Its bottom-line result surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 30.4%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Vertiv’s first-quarter bottom line is pegged at earnings of 37 cents per share, which indicates a robust improvement from the year-ago quarter’s earnings of 24 cents. The consensus mark for revenues stands at $1.63 billion, which calls for a year-over-year increase of 7%.
Meta Platforms carries a Zacks Rank #2 and has an Earnings ESP of +3.26%. The company is slated to report first-quarter 2024 results on Apr 24. Its earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, with the average surprise being 19.7%.
The Zacks Consensus Estimate for Meta’s fourth-quarter earnings stands at $4.31 per share, indicating a year-over-year increase of 63.3%. It is estimated to report revenues of $36.15 billion, which implies an increase of approximately 26.2% from the year-ago quarter.
Lam Research is slated to report third-quarter fiscal 2024 results on Apr 24. The company has a Zacks Rank #2 and an Earnings ESP of +0.26% at present. Lam Research’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 11.3%.
The Zacks Consensus Estimate for third-quarter earnings is pegged at $7.23 per share, which suggests an improvement from the year-ago quarter’s earnings of $6.99. Lam Research’s quarterly revenues are estimated to decline 4.2% to $3.71 billion.
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Infosys (INFY) to Report Q4 Earnings: What's in the Cards?
Infosys Limited (INFY - Free Report) is slated to report fourth-quarter fiscal 2024 results on Apr 18.
Over the trailing four quarters, this India-based IT services provider’s earnings met the Zacks Consensus Estimate once, surpassed on one occasion and missed twice, delivering an average negative surprise of 1.2%.
In the last reported quarter, Infosys’ adjusted earnings of 18 cents per share surpassed the Zacks Consensus Estimate of 17 cents but came a penny lower from the year-ago quarter’s earnings of 19 cents. Third-quarter fiscal 2024 revenues were flat year over year at $4.66 billion but surpassed the consensus mark of $4.58 billion.
The Zacks Consensus Estimate for fiscal fourth-quarter revenues is pegged at $4.49 billion, which indicates a marginal 1.4% decrease from the year-ago period’s level. The consensus mark for earnings stands at 17 cents per share, a penny lower than the year-ago quarter.
Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.
Infosys Limited Price and EPS Surprise
Infosys Limited price-eps-surprise | Infosys Limited Quote
Factors to Consider
Infosys’ fourth-quarter results are likely to reflect the negative impact of slowing IT spending as organizations are postponing their plans of investing in big and expensive technology products. They are doing so due to growing global slowdown concerns amid persistent macroeconomic headwinds and geopolitical tensions.
The company has been witnessing continued softness across its Financial Services business unit owing to delayed decision-making by its clients. Though clients are focusing on leveraging artificial intelligence (AI) to accelerate digital transformation, long decision cycles are likely to have negatively impacted INFY’s Retail segment’s fourth-quarter top line.
Budget cuts, slow ramp-up and delayed decision-making for new spending amid ongoing macroeconomic headwinds are anticipated to have hurt the Communication business unit’s performance in the quarter.
Despite headwinds from slow decision-making, increased spending toward large-scale transformation programs, such as enhancing digital capabilities for energy transition and achieving net zero emission, is expected to boost Infosys’ Energy, Utilities, Resources and Services vertical performance in the fourth quarter.
Accelerated transition to the cloud and a focus on increasing productivity by switching to smart factories and products are likely to have boosted the Manufacturing business unit’s revenues in the to-be-reported quarter.
Additionally, inflated investments in sales and localization and rising costs to grab large deals are expected to have impacted Infosys’ bottom line in the to-be-reported quarter.
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.
Though INFY has an Earnings ESP of +4.85%, it 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, Vertiv (VRT - Free Report) , Meta Platforms (META - Free Report) and Lam Research (LRCX - Free Report) have the right combination of elements to post an earnings beat in their upcoming releases.
Vertiv sports a Zacks Rank #1 and has an Earnings ESP of +1.72%. The company is scheduled to report first-quarter 2024 results on Apr 24. Its bottom-line result surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 30.4%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Vertiv’s first-quarter bottom line is pegged at earnings of 37 cents per share, which indicates a robust improvement from the year-ago quarter’s earnings of 24 cents. The consensus mark for revenues stands at $1.63 billion, which calls for a year-over-year increase of 7%.
Meta Platforms carries a Zacks Rank #2 and has an Earnings ESP of +3.26%. The company is slated to report first-quarter 2024 results on Apr 24. Its earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, with the average surprise being 19.7%.
The Zacks Consensus Estimate for Meta’s fourth-quarter earnings stands at $4.31 per share, indicating a year-over-year increase of 63.3%. It is estimated to report revenues of $36.15 billion, which implies an increase of approximately 26.2% from the year-ago quarter.
Lam Research is slated to report third-quarter fiscal 2024 results on Apr 24. The company has a Zacks Rank #2 and an Earnings ESP of +0.26% at present. Lam Research’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 11.3%.
The Zacks Consensus Estimate for third-quarter earnings is pegged at $7.23 per share, which suggests an improvement from the year-ago quarter’s earnings of $6.99. Lam Research’s quarterly revenues are estimated to decline 4.2% to $3.71 billion.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.