Shares of Infosys (NYSE:INFY) gained 33% in July, according to data from S&P Global Market Intelligence. The global consulting and outsourcing veteran reported solid fiscal first-quarter results in a difficult market environment.
The Bengaluru-based company saw sales fall 0.3% year over year to $3.12 billion. Revenue increased by 1.5% when measured in constant currencies. Earnings rose 4% to $0.13 per diluted share. Your average analyst would have settled for earnings near $0.12 per share on sales of roughly $2.94 billion. The report sent Infosys stock 12% higher in a single day.
The earnings-based boost was sustained by several bullish analyst reactions to the results. Near the end of July, Infosys experienced another significant win when utility company Consolidated Edison signed a four-year deal with Infosys to inject digital know-how and modern tools into the company's customer service systems.
This stock took a deep dive in March but is coming back strong after a pair of impressive earnings reports amid the COVID-19 pandemic. The public health crisis has not slowed down Infosys' revenue as much as market watchers had expected and it is positioned to win new business as many companies adjust to a heavier reliance on IT systems and remote-work processes.
"We've had a good focus on the way we built our digital capabilities and that as you can see is getting more and more traction in this environment with clients," CEO Salil Parekh said in the earnings call. "We see clients are extremely comfortable to look at work-from-home scenarios in a different fashion."
Infosys shares are back to setting fresh all-time highs these days and that makes sense, as the coronavirus crisis has caused limited damage so far while opening up long-term business opportunities.