Cognizant Technology Solutions Corporation (NASDAQ: CTSH), a leading professional services companies, announced its third quarter 2017 financial results.
Highlights – Third Quarter 2017
- Quarterly revenue rose to $3.77 billion, up 9.1% from the year-ago quarter.
- Quarterly GAAP diluted EPS was $0.84, compared to $0.73 in the year-ago quarter.
- Quarterly non-GAAP diluted EPS1 was $0.98, compared to $0.86 in the year-ago quarter.
Revenue for the third quarter of 2017 rose to $3.77 billion, up 9.1% from $3.45 billion in the third quarter of 2016. GAAP net income was $495 million, or $0.84 per diluted share, compared to $444 million, or $0.73 per diluted share, in the third quarter of 2016. Non-GAAP diluted EPS was $0.98, compared to $0.86 in the third quarter of 2016. GAAP operating margin was 17.2% and non-GAAP operating margin was 20.0% for the third quarter of 2017.
“We are making consistent progress in executing the plan to accelerate our shift to digital services and solutions,” said Francisco D’Souza, Chief Executive Officer. “We’ve systematically built the significant capabilities needed to help our clients transform their business, operating, and technology models ̶ a transformation we call digital at scale. We believe our long-term relationships with clients and deep understanding of their priorities puts us in a privileged position to help them adapt, compete, and grow.”
Fourth Quarter & Full Year 2017 Outlook
The Company is providing the following guidance:
- Fourth quarter 2017 revenue expected to be in the range of $3.79 billion to $3.85 billion.
- Fourth quarter 2017 non-GAAP diluted EPS2 expected to be at least $0.95.
- Full year 2017 revenue expected to be in the range of $14.78 billion to $14.84 billion.
- Full year 2017 non-GAAP diluted EPS expected to be at least $3.70.
“We delivered solid third-quarter performance and completed a $1.5 billion Accelerated Share Repurchase program,” said Karen McLoughlin, Chief Financial Officer. “During the quarter, we continued to take actions designed to improve our cost structure while allowing us to invest in the business for growth. We maintained our momentum, and we expect to close out 2017 with solid revenue and earnings growth while having undertaken a substantial return of capital to shareholders.”
Return of Capital Program – Dividend
The Company has declared its quarterly cash dividend of $0.15 per share on Cognizant Class A Common Stock for shareholders of record at the close of business on November 20, 2017. This dividend will be payable on November 30, 2017.