Canaccord Genuity Morning Coffee on Infosys (INFY): The Times, They are a-Changin'
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Price: $41.58 -1.59%
Rating Summary:
6 Buy, 11 Hold, 1 Sell
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Today's Overall Ratings:
Up: 8 | Down: 12 | New: 30
Rating Summary:
6 Buy, 11 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 12 | New: 30
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Canaccord Genuity Morning Coffee on Infosys (Nasdaq: INFY): The Times, They are a-changin'.
IT heavyweight Infosys delivered a shocker as it made a deeper-than-expected cut to its sales forecast, citing global economic uncertainty. It now sees revenue rising 5% in the fiscal year to March 2013, down from its April estimate of 8-10% growth. While most analysts expected that Infosys would revise its full year outlook, a growth prediction of just 5% was below almost all expectations. For the quarter ended June 30, Infosys said its net profit grew 33% from a year earlier to 22.89 billion rupees from 17.2 billion rupees a year earlier, in line with analysts' expectations. Revenue grew 29% to 96.16 billion rupees, below the consensus view of 96.53 billion rupees. Infosys, India's No.2 software services exporter, had long been considered the industry bellwether for its habit of achieving and usually exceeding revenue forecasts. However, more recently, Infosys seems to have lost its ability to outperform its guidance. It has missed its previously announced target in five out of the last six quarters. Meanwhile, local rival Tata Consultancy Services (TCS) reported slightly better-thanexpected results for April-June, a stark contrast to Infosys’ results. TCS has been better at changing with the more stringent times, increasing its market share from lower cost work amongst India's top three firms. Separately, Infosys has said it is "seriously looking" at acquisitions as the company understands the importance of growth through buying out other companies. Infosys CFO V. Balakrishnan added, “If we find any good strategic fit, we want to use cash to grow that part of the business to meet our overall corporate objective."
Note - shares were slammed yesterday, down about $5 (-11%), but are rebounding slightly today, up approximately 2%.
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IT heavyweight Infosys delivered a shocker as it made a deeper-than-expected cut to its sales forecast, citing global economic uncertainty. It now sees revenue rising 5% in the fiscal year to March 2013, down from its April estimate of 8-10% growth. While most analysts expected that Infosys would revise its full year outlook, a growth prediction of just 5% was below almost all expectations. For the quarter ended June 30, Infosys said its net profit grew 33% from a year earlier to 22.89 billion rupees from 17.2 billion rupees a year earlier, in line with analysts' expectations. Revenue grew 29% to 96.16 billion rupees, below the consensus view of 96.53 billion rupees. Infosys, India's No.2 software services exporter, had long been considered the industry bellwether for its habit of achieving and usually exceeding revenue forecasts. However, more recently, Infosys seems to have lost its ability to outperform its guidance. It has missed its previously announced target in five out of the last six quarters. Meanwhile, local rival Tata Consultancy Services (TCS) reported slightly better-thanexpected results for April-June, a stark contrast to Infosys’ results. TCS has been better at changing with the more stringent times, increasing its market share from lower cost work amongst India's top three firms. Separately, Infosys has said it is "seriously looking" at acquisitions as the company understands the importance of growth through buying out other companies. Infosys CFO V. Balakrishnan added, “If we find any good strategic fit, we want to use cash to grow that part of the business to meet our overall corporate objective."
Note - shares were slammed yesterday, down about $5 (-11%), but are rebounding slightly today, up approximately 2%.
To see more reports on INFY, Click Here
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*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
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