Cognizant posts higher 3Q profit, sales

TEANECK, N.J. - Information technology and outsourcing company Cognizant Technology Solutions Corp. said Wednesday its third-quarter profit increased as revenue climbed to beat Wall Street's expectations.

The company earned $112.8 million, or 38 cents per share, up 17 percent from $96.2 million, or 32 cents per share, in the same period a year earlier.

Excluding stock options costs and other items, adjusted earnings were 40 cents per share.

Revenue rose 32 percent to $734.7 million from $558.8 million.

Analysts, on average, expected a profit of 37 cents per share on sales of $722.6 million, according to a poll by Thomson Reuters. The estimates include stock options costs.

"Despite our stronger-than-expected third-quarter revenue performance, we are maintaining our full year-guidance in light of the current environment which requires caution and prudence," said Gordon Coburn, chief financial and operating officer, in a statement.

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