Infosys Tops Forecasts, Raises Outlook for Current Quarter
Infosys Technologies reported fiscal third-quarter earnings and revenues that topped analysts' expectations, and also bumped up its outlook for the current quarter.
India's No. 2 software exporter said net income rose to $218 million, or 38 cents per diluted American depositary share, for the three months ended Dec. 31, up from $148 million, or 26 cents per share in the same quarter a year ago. Analysts surveyed by Thomson First Call expected a profit of 37 cents per share.
Revenues form the quarter jumped 47% from the year-ago period to $821 million, beating expectations for revenues of $797 million.
The company, which writes and develops software for many Western companies, said it added 43 new clients during the quarter, including a leading U.S. grocery chain.
There was muted reaction from the market, though, as shares declined in India and Europe.
"Though they have beaten their own estimates, they barely managed to meet market estimates," V.K. Sharma, head of research at Anagram Stock Broking, told Reuters. "The outlook is also mellowed."
For its fiscal fourth quarter, ending March, the company said it expects to earn 40 cents per share on revenues of $859 million to $861 million. Analysts were predicting a profit of 39 cents per share, with revenues of $837 million. But Infosys also said a stronger rupee is hurting operating margins.
Infosys has roughly doubled its revenue over the past two business years to more than $2 billion as it won more outsourcing contracts from Western clients seeking to cut costs, Reuters reported. Having relied heavily on the United States for revenue growth, it is spreading its operations to other parts of the world.