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Infosys (INFY) Q2 Earnings Match Estimates, Revenues Top
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Infosys Limited (INFY - Free Report) reported second-quarter fiscal 2019 earnings of 13 cents per share, which came in line with the Zacks Consensus Estimate.
Revenues of $2.92 billion increased 7.1% year over year and surpassed the Zacks Consensus Estimate of $2.89 billion. In terms of constant currency (C), revenues were up 8.1%.
Infosys is benefiting from growth across geographies and business segments. Large deal wins are a positive for the company.
Quarter Details
Digital Revenues (31% of total) were up 31.9% year over year to $905 million whereas Core Revenues (69%) declined 1.3% to $2.02 billion.
In the quarter, the company signed deals with a total contract value (TCV) of more than $2 billion compared with $1.1 billion in the previous quarter.
The company reported that its number of $100 million-plus clients is now 23, compared with 19 in the year-ago quarter.
Geographically, on a sequential basis, North America, Europe, Rest of the World and India revenues grew 3.8%, 4%, 6.8% and 3%, respectively in CC.
On the basis of segment, Retail and Financial Services recorded highest growth of 5.9% and 5.8% respectively. Energy, Utilities, Resources & Services; Communication, Manufacturing, Hi Tech and Life Sciences rose 2.8%, 1.2%, 4.8%, 3.6% and 0.7% respectively.
Gross profit increased 5.7% year over year to $1.04 billion. Gross margin contracted nearly 60 basis points (bps) on a year-over-year basis to 35.5%.
The company’s operating income increased 5% year on year to $692 million. However, operating margin declined 50 bps to 23.7%.
Long-term earnings growth rate for Ciena, Veeva and j2 Global is currently projected to be 15.5%, 19.3% and 8% respectively.
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Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.
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Infosys (INFY) Q2 Earnings Match Estimates, Revenues Top
Infosys Limited (INFY - Free Report) reported second-quarter fiscal 2019 earnings of 13 cents per share, which came in line with the Zacks Consensus Estimate.
Revenues of $2.92 billion increased 7.1% year over year and surpassed the Zacks Consensus Estimate of $2.89 billion. In terms of constant currency (C), revenues were up 8.1%.
Infosys is benefiting from growth across geographies and business segments. Large deal wins are a positive for the company.
Quarter Details
Digital Revenues (31% of total) were up 31.9% year over year to $905 million whereas Core Revenues (69%) declined 1.3% to $2.02 billion.
In the quarter, the company signed deals with a total contract value (TCV) of more than $2 billion compared with $1.1 billion in the previous quarter.
The company reported that its number of $100 million-plus clients is now 23, compared with 19 in the year-ago quarter.
Geographically, on a sequential basis, North America, Europe, Rest of the World and India revenues grew 3.8%, 4%, 6.8% and 3%, respectively in CC.
On the basis of segment, Retail and Financial Services recorded highest growth of 5.9% and 5.8% respectively. Energy, Utilities, Resources & Services; Communication, Manufacturing, Hi Tech and Life Sciences rose 2.8%, 1.2%, 4.8%, 3.6% and 0.7% respectively.
Gross profit increased 5.7% year over year to $1.04 billion. Gross margin contracted nearly 60 basis points (bps) on a year-over-year basis to 35.5%.
The company’s operating income increased 5% year on year to $692 million. However, operating margin declined 50 bps to 23.7%.
Infosys Limited Price, Consensus and EPS Surprise
Infosys Limited Price, Consensus and EPS Surprise | Infosys Limited Quote
Liquidity
As of Sep 30, 2018, Infosys had cash and cash equivalents of $2,462 million compared with $2,411 million recorded in the previous quarter.
Outlook
Infosys reiterated its fiscal 2019 guidance. Revenues are expected to grow in the range of 6-8% at CC.
Operating margin range is anticipated to be between 22 and 24%.
Zacks Rank and Other Stocks to Consider
Infosys currently has a Zacks Rank #2 (Buy).
A few other top-ranked stocks in the broader technology sector are Ciena (CIEN - Free Report) , Veeva Systems (VEEV - Free Report) and j2 Global , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rate for Ciena, Veeva and j2 Global is currently projected to be 15.5%, 19.3% and 8% respectively.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>