Cognizant (CTSH) Tops Q2 EPS by 5c; Guides Q3 Below Views; Adds to Buyback Plan

Cognizant (NASDAQ: CTSH) reported Q2 EPS of $0.87, $0.05 better than the analyst estimate of $0.82. Revenue for the quarter came in at $3.37 billion versus the consensus estimate of $3.37 billion.

Our Board of Directors approved an increase of the Company's stock repurchase program by $1.0 billion, from $2.0 billion to $3.0 billion, and extended the term of the program by one year to December 31, 2018. Since inception of the program, the Company has repurchased $1.9 billion of its shares under this program.

The Company is authorized to repurchase shares under the program through open market purchases, including under a trading plan adopted pursuant to Rule 10b5-1, or through privately negotiated transactions, in accordance with applicable federal securities laws. The timing of repurchases and the exact number of shares to be purchased will be determined by the Company's management, in its discretion, or pursuant to a Rule 10b5-1 trading plan, and will depend upon market conditions and other factors. The repurchases are expected to be funded using the Company's working capital.

GUIDANCE:

Cognizant sees Q3 2016 EPS of $0.82-$0.85, versus the consensus of $0.86. Cognizant sees Q3 2016 revenue of $3.43-3.47 billion, versus the consensus of $3.54 billion.

Cognizant sees FY2016 EPS of $3.32-$3.44, versus the consensus of $3.37. Cognizant sees FY2016 revenue of $13.47-13.60 billion, versus the consensus of $13.75 billion.

For earnings history and earnings-related data on Cognizant (CTSH) click here.

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