UPDATE 1-Syntel Q4 results beat Street
* Q4 EPS of 86 cents beat estimates by 21 cents
* Q4 revenue beats Street view
* Sees 2010 EPS of $2.15 to $2.45 vs est of $2.42
Feb 11 (Reuters) - Syntel Inc (SYNT.O) posted a quarterly profit that beat Wall Street expectations as the IT services firm saw improving market conditions for outsourcing, but gave a weak 2010 earnings outlook.
The company forecast 2010 earnings of $2.15 to $2.45 a share, on revenue of $430 million to $460 million. Analysts were looking for earnings of $2.42 a share, excluding items, on revenue of $444.8 million, according to Thomson Reuters I/B/E/S.
The Troy, Michigan-based company, which provides low-cost business process outsourcing services from India, where most of its employees are based, said it expects demand for offshore services to continue in 2010.
"We anticipate that our clients' budgets will remain relatively flat in 2010, however, we believe that a larger share of their spending will be allocated to offshore partners," Chairman Bharat Desai said in a statement.
Syntel, which competes with companies like Cognizant Technology (CTSH.O) and Infosys (INFY.BO)INFY.O, posted fourth-quarter net income of $35.8 million, or 86 cents per share, up from $26.7 million, or 64 cents per share, a year earlier.
Revenue rose 12 percent to $117.8 million.
Analysts expected earnings of 65 cents a share, excluding exceptional items, on revenue of $106.4 million.
Gross margins for the fourth quarter improved to 50.2 percent, compared with 48.3 percent in the prior-year period.
The company's shares, which have gained about 60 percent of their value in last twelve months, were down 46 cents, or 1 percent, at $32.09 Thursday on Nasdaq. (Reporting by Shrutika Verma in Bangalore; Editing by Maju Samuel)
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