The IT service provider climbed 4% to 26.92 after it said Q1 EPS rose 12% to 38 cents, beating views by a penny. Revenue grew 16% to $745.9 mil, below views. While overall IT spending is weak, a Jefferies analyst said Cognizant Technology Solutions (CTSH) benefited from its strong customer base, including JPMorgan (JPM), which has been "pretty aggressive" with its offshore initiatives. Rivals Wipro (WIT) and Infosys Technologies (INFY) had guided down on weak demand, but Cognizant expects Q2 EPS of 42 cents ex items, above views.
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Wednesday, May 6, 2009
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