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What: Shares of Indian IT services giant Infosys
So what: Infosys' fourth-quarter EPS managed to top estimates, but management's premonition of a tough year ahead for the sector is triggering fresh concerns over rapidly slowing growth. Naturally, the news is also putting pressure on peers like Wipro
Now what: Management now sees full-year EPS of $3.12 to $3.17 on revenue of $7.55 billion to $7.69 billion, well below the consensus of $3.32 on $7.79 billion. "The year ahead looks challenging for the IT services industry, with slow recovery in the global markets," says CEO S. D. Shibulal. "We are executing on our Infosys 3.0 strategy which is meant to deliver high quality growth in the medium to long term." With the stock now down nearly 30% from its October highs and trading at a forward P/E of 15, betting on that long-term turnaround seems like a reasonable idea.
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