Shares of consulting company Cognizant Technology Solutions (NASDAQ:CTSH) took a hit on Friday, falling as much as 13.4%. As of 12:20 p.m. EDT, the stock was down 10.7%.
The stock's decline follows Cognizant's first-quarter earnings release, which included worse-than-expected top- and bottom-line results. In addition, management lowered its outlook for the year.
The company said first-quarter revenue rose 5.1% year over year to $4.11 billion. Non-GAAP earnings per share declined from $0.94 in the year-ago quarter to $0.91. On average, analysts were expecting revenue of $4.17 billion and non-GAAP earnings per share of $1.03.
"Cognizant's growth and performance in the quarter leaves room for improvement," said Cognizant CEO Brian Humphries in the company's first-quarter earnings release. "While I am encouraged by our client centricity, our employees' winning spirit and our innovation, we are not yet delivering against the market opportunity."
Reflecting the company's underperformance during the quarter and revised expectations for slower growth in financial services and healthcare throughout 2019, Cognizant now expects full-year revenue to increase 3.6% to 5.1% year over year in constant currency. Previously, management expected constant-currency 2019 revenue to grow 7% to 9% year over year.