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Unlocking Cognizant (CTSH) International Revenues: Trends, Surprises, and Prospects
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Have you evaluated the performance of Cognizant's (CTSH - Free Report) international operations during the quarter that concluded in June 2024? Considering the extensive worldwide presence of this information technology consulting and outsourcing firm, analyzing the patterns in international revenues is crucial for understanding its financial resilience and potential for growth.
In the modern, closely-knit global economic landscape, the capacity of a business to access foreign markets is often a key determinant of its financial well-being and growth path. Investors now place great importance on grasping the extent of a company's dependence on international markets, as it sheds light on the firm's earnings stability, its skill in leveraging various economic cycles and its broad growth potential.
Being present in foreign markets serves as protection against local economic declines and helps benefit from more rapidly expanding economies. Yet, such expansion also introduces challenges related to currency fluctuations, geopolitical uncertainties and varied market behaviors.
Our review of CTSH's last quarterly performance uncovered some notable trends in the revenue contributions from its international markets, which are commonly analyzed and tracked by Wall Street experts.
For the quarter, the company's total revenue amounted to $4.85 billion, experiencing a decline of 0.7% year over year. Next, we'll explore the breakdown of CTSH's international revenue to understand the importance of its overseas business operations.
Trends in CTSH's Revenue from International Markets
Rest of World generated $316 million in revenues for the company in the last quarter, constituting 6.5% of the total. This represented a surprise of +46.68% compared to the $215.44 million projected by Wall Street analysts. Comparatively, in the previous quarter, Rest of World accounted for $300 million (6.3%), and in the year-ago quarter, it contributed $330 million (6.8%) to the total revenue.
Of the total revenue, $470 million came from Continental Europe during the last fiscal quarter, accounting for 9.7%. This represented a surprise of -8.08% as analysts had expected the region to contribute $511.29 million to the total revenue. In comparison, the region contributed $483 million, or 10.2%, and $494 million, or 10.1%, to total revenue in the previous and year-ago quarters, respectively.
During the quarter, United Kingdom contributed $444 million in revenue, making up 9.2% of the total revenue. When compared to the consensus estimate of $496.65 million, this meant a surprise of -10.6%. Looking back, United Kingdom contributed $456 million, or 9.6%, in the previous quarter, and $473 million, or 9.7%, in the same quarter of the previous year.
Revenue Projections for Overseas Markets
The current fiscal quarter's total revenue for Cognizant, as projected by Wall Street analysts, is expected to reach $4.94 billion, reflecting an increase of 1% from the same quarter last year. The breakdown of this revenue by foreign region is as follows: Rest of World is anticipated to contribute 5.3% or $261.96 million, Continental Europe 10.1% or $500.94 million and United Kingdom 10.2% or $505.44 million.
Analysts expect the company to report a total annual revenue of $19.44 billion for the full year, marking an increase of 0.5% compared to last year. The expected revenue contributions from Rest of World, Continental Europe and United Kingdom are projected to be 5.2% ($1.01 billion), 10.3% ($1.99 billion) and 10% ($1.94 billion) of the total revenue, in that order.
Final Thoughts
Relying on international markets for revenues, Cognizant faces both prospects and perils. Thus, tracking the company's international revenue trends is essential for accurately projecting its future trajectory.
In a world where international interdependencies and geopolitical conflicts are ever-increasing, Wall Street analysts closely monitor these trends for companies having international presence to adjust their earnings forecasts. Of course, there are several other factors, including a company's standing within its home borders, that influence analysts' earnings forecasts.
At Zacks, a company's changing earnings outlook is given considerable attention due to its proven, strong influence on a stock's price performance in the near term. The connection here is straightforward and positive: when earnings estimates are revised upward, the stock price generally follows suit, increasing as well.
Our proprietary stock rating tool, the Zacks Rank, with its externally validated exceptional track record, harnesses the power of earnings estimate revisions to serve as a dependable measure for anticipating the short-term price trends of stocks.
Over the preceding four weeks, the stock's value has appreciated by 8.8%, against a downturn of 2.9% in the Zacks S&P 500 composite. In parallel, the Zacks Computer and Technology sector, which counts Cognizant among its entities, has depreciated by 8.7%. Over the past three months, the company's shares have seen an increase of 10.5% versus the S&P 500's 5.9% increase. The sector overall has witnessed an increase of 6.3% over the same period.
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Unlocking Cognizant (CTSH) International Revenues: Trends, Surprises, and Prospects
Have you evaluated the performance of Cognizant's (CTSH - Free Report) international operations during the quarter that concluded in June 2024? Considering the extensive worldwide presence of this information technology consulting and outsourcing firm, analyzing the patterns in international revenues is crucial for understanding its financial resilience and potential for growth.
In the modern, closely-knit global economic landscape, the capacity of a business to access foreign markets is often a key determinant of its financial well-being and growth path. Investors now place great importance on grasping the extent of a company's dependence on international markets, as it sheds light on the firm's earnings stability, its skill in leveraging various economic cycles and its broad growth potential.
Being present in foreign markets serves as protection against local economic declines and helps benefit from more rapidly expanding economies. Yet, such expansion also introduces challenges related to currency fluctuations, geopolitical uncertainties and varied market behaviors.
Our review of CTSH's last quarterly performance uncovered some notable trends in the revenue contributions from its international markets, which are commonly analyzed and tracked by Wall Street experts.
For the quarter, the company's total revenue amounted to $4.85 billion, experiencing a decline of 0.7% year over year. Next, we'll explore the breakdown of CTSH's international revenue to understand the importance of its overseas business operations.
Trends in CTSH's Revenue from International Markets
Rest of World generated $316 million in revenues for the company in the last quarter, constituting 6.5% of the total. This represented a surprise of +46.68% compared to the $215.44 million projected by Wall Street analysts. Comparatively, in the previous quarter, Rest of World accounted for $300 million (6.3%), and in the year-ago quarter, it contributed $330 million (6.8%) to the total revenue.
Of the total revenue, $470 million came from Continental Europe during the last fiscal quarter, accounting for 9.7%. This represented a surprise of -8.08% as analysts had expected the region to contribute $511.29 million to the total revenue. In comparison, the region contributed $483 million, or 10.2%, and $494 million, or 10.1%, to total revenue in the previous and year-ago quarters, respectively.
During the quarter, United Kingdom contributed $444 million in revenue, making up 9.2% of the total revenue. When compared to the consensus estimate of $496.65 million, this meant a surprise of -10.6%. Looking back, United Kingdom contributed $456 million, or 9.6%, in the previous quarter, and $473 million, or 9.7%, in the same quarter of the previous year.
Revenue Projections for Overseas Markets
The current fiscal quarter's total revenue for Cognizant, as projected by Wall Street analysts, is expected to reach $4.94 billion, reflecting an increase of 1% from the same quarter last year. The breakdown of this revenue by foreign region is as follows: Rest of World is anticipated to contribute 5.3% or $261.96 million, Continental Europe 10.1% or $500.94 million and United Kingdom 10.2% or $505.44 million.Analysts expect the company to report a total annual revenue of $19.44 billion for the full year, marking an increase of 0.5% compared to last year. The expected revenue contributions from Rest of World, Continental Europe and United Kingdom are projected to be 5.2% ($1.01 billion), 10.3% ($1.99 billion) and 10% ($1.94 billion) of the total revenue, in that order.
Final Thoughts
Relying on international markets for revenues, Cognizant faces both prospects and perils. Thus, tracking the company's international revenue trends is essential for accurately projecting its future trajectory.In a world where international interdependencies and geopolitical conflicts are ever-increasing, Wall Street analysts closely monitor these trends for companies having international presence to adjust their earnings forecasts. Of course, there are several other factors, including a company's standing within its home borders, that influence analysts' earnings forecasts.
At Zacks, a company's changing earnings outlook is given considerable attention due to its proven, strong influence on a stock's price performance in the near term. The connection here is straightforward and positive: when earnings estimates are revised upward, the stock price generally follows suit, increasing as well.
Our proprietary stock rating tool, the Zacks Rank, with its externally validated exceptional track record, harnesses the power of earnings estimate revisions to serve as a dependable measure for anticipating the short-term price trends of stocks.
Cognizant currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Cognizant's Recent Stock Market Performance
Over the preceding four weeks, the stock's value has appreciated by 8.8%, against a downturn of 2.9% in the Zacks S&P 500 composite. In parallel, the Zacks Computer and Technology sector, which counts Cognizant among its entities, has depreciated by 8.7%. Over the past three months, the company's shares have seen an increase of 10.5% versus the S&P 500's 5.9% increase. The sector overall has witnessed an increase of 6.3% over the same period.