Why Syntel Jumped

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Syntel (Nasdaq: SYNT  ) jumped today by as much as 18% after the company reported first-quarter earnings.

So what: Revenue climbed to $170.7 million, which was a little shy of the Street's expectations. On the other hand, the earnings per share of $0.98 more than made up for it by toppling the consensus estimate of $0.75.

Now what: CEO Prashant Ranade said the company saw stable trends in client spending and plans to continue making additional investments in the business. Looking forward, full-year guidance calls for revenue of $730 million to $755 million with earnings per share between $3.40 and $3.65, which are better than what investors were expecting.

Interested in more info on Syntel? Add it to your Watchlist.

Fool contributor Evan Niu holds no position in any company mentioned. Check out his holdings and a short bio. The Motley Fool has a disclosure policy. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.


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