Virtusa (VRTU) Reports In-Line Q2 EPS, Slight Miss on Revenues; Offers FY19 EPS/Revenue Outlook

Virtusa (NASDAQ: VRTU) reported Q2 EPS of $0.54, in-line with the analyst estimate of $0.54. Revenue for the quarter came in at $305.5 million versus the consensus estimate of $306.34 million.

Kris Canekeratne, Virtusa’s Chairman and CEO, stated, “We delivered another solid quarter driven by our differentiated value proposition and excellence in execution and service delivery. Virtusa continues to strengthen its position as a preferred partner enabling end-to-end digital transformation to many of the world’s leading companies. Our above-industry growth and continued momentum give us confidence in our strategy and long-term opportunities.”

Ranjan Kalia, Chief Financial Officer, said, “Our fiscal second quarter results are highlighted by double-digit year-over-year organic revenue growth, significant margin accretion, and non-GAAP EPS growth of 54%. As contemplated in our prior guidance, growth resumed at our largest client in the fiscal second quarter. Also, the recently completed eTouch acquisition continues to perform well. We are maintaining the midpoint of our fiscal 2019 guidance, which continues to reflect above-industry revenue growth on an organic basis even after absorbing an incremental $4 million of forecasted currency headwinds in the second half.”

GUIDANCE:

Virtusa sees FY2019 EPS of $2.19-$2.31, versus the consensus of $2.27. Virtusa sees FY2019 revenue of $1.241-1.259 billion, versus the consensus of $1.25 billion.

For earnings history and earnings-related data on Virtusa (VRTU) click here.

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