Cognizant Technology Solutions Corp (CTSH.O) reported higher-than-expected quarterly results on increased demand for its outsourcing and consulting services, and the company raised its full-year earnings forecast.
Cognizant said it now expects full-year earnings of at least $3.42 per share, up from its previous forecast of at least $3.38 per share. It reaffirmed its revenue forecast of $7.34 billion.
Analysts on average expect earnings of $3.39 per share on revenue of $7.34 billion, according to Thomson Reuters I/B/E/S.
IT services providers such as Cognizant, Accenture Plc (ACN.N), and India-based Tata Consultancy Services Ltd (TCS.NS) and Wipro Ltd (WIPR.NS) have benefited from a rise in demand for outsourcing as companies try to cut costs.
However, Accenture had said in September that spending on consulting will remain slow.
Net income rose to $276.9 million, or 91 cents per share, in the third quarter from $227.1 million, or 73 cents per share, a year earlier.
Excluding items, the company earned 97 cents per share.
Revenue rose to $1.89 billion from $1.60 billion a year earlier.
Analysts expected earnings of 87 cents per share on revenue of $1.88 billion.
Shares of the Teaneck, New Jersey-based company, most of whose employees are in India, have risen 5 percent since its second-quarter revenue topped rival and Indian bellwether Infosys Ltd's (INFY.NS) on August 6. They closed at $67.35 on Tuesday on the Nasdaq.
(Reporting by Sruthi Ramakrishnan in Bangalore; Editing by Don Sebastian, Roshni Menon)