Cognizant tops forecasts with 1Q results, outlook

Cognizant Technology Solutions Corp. topped expectations with first-quarter results and an upbeat forecast for the June quarter on Tuesday.

Shares jumped 90 cents, or 3.5 percent, to $26.80 in afternoon trading.

The information technology and consulting company said earnings climbed 11 percent to $113.1 million, or 38 cents per share, from $101.9 million, or 34 cents per share, in the year-earlier quarter.

Adjusted to exclude one-time stock-based compensation and tax costs, the company's profit came to 41 cents per share. Analysts, who typically exclude special items, expected 37 cents per share, according to a Thomson Reuters poll.

Sales also beat out expectations, up 16 percent to $745.9 million, compared with the average estimate of $734.3 million.

The company said economic uncertainty has bolstered demand for consulting "as our clients face fundamental structural changes within their industries."

In a statement, Chief Executive Francisco D'Souza said the company is confident it can hit its goal of growing revenue at least 10 percent this year.

Cognizant said it expects adjusted earnings for the second quarter of 42 cents per share on sales of at least $760 million. Analysts project 37 cents per share and sales of $748.5 million.