What happened
Syntel (NASDAQ: SYNT) stock has jumped today, up by 14% as of 2:00 p.m. EDT, after the company reported second-quarter earnings that beat analyst expectations.
So what
Revenue in the second quarter fell 8% to $226.8 million, while earnings per share fell 37% to $0.44. Despite those declines, the results beat consensus estimates, which called for $220.5 million in sales and earnings per share of $0.40.
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Syntel closed out the quarter with $87 million in cash and short-term investments on the balance sheet.
Now what
In a statement, CEO Rakesh Khanna said that demand for digital services "remained high" while Syntel's insurance business "continued to benefit from healthier industry trends." Khanna also added that it may take some time before growth returns to other operating segments, but the company will continue investing in digital and automation-driven services. In terms of guidance, full-year 2017 revenue is expected in the range of $865 million to $900 million, with earnings per share of $1.62 to $1.77, assuming an exchange rate of 64.5 Indian rupees to the U.S. dollar.
