The upcoming report from Cognizant (CTSH) is expected to reveal quarterly earnings of $1.19 per share, indicating an increase of 6.3% compared to the year-ago period. Analysts forecast revenues of $5.07 billion, representing an increase of 6.5% year over year.
The consensus EPS estimate for the quarter has been revised 0.5% lower over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.
Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.
While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.
In light of this perspective, let's dive into the average estimates of certain Cognizant metrics that are commonly tracked and forecasted by Wall Street analysts.
The consensus estimate for 'Revenue- Products and Resources' stands at $1.27 billion. The estimate suggests a change of +12.2% year over year.
The average prediction of analysts places 'Revenue- Health Sciences' at $1.55 billion. The estimate points to a change of +9.7% from the year-ago quarter.
The combined assessment of analysts suggests that 'Revenue- Financial services' will likely reach $1.43 billion. The estimate points to a change of +3.2% from the year-ago quarter.
The consensus among analysts is that 'Revenue- Communications, Media and Technology' will reach $835.39 million. The estimate indicates a year-over-year change of +1.1%.
View all Key Company Metrics for Cognizant here>>>
Shares of Cognizant have demonstrated returns of -5.1% over the past month compared to the Zacks S&P 500 composite's -0.8% change. With a Zacks Rank #3 (Hold), CTSH is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
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Cognizant Technology Solutions Corporation (CTSH): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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