<\/p>\n","protected":false},"excerpt":{"rendered":"
Cognizant Technology Solutions, a major IT provider headquartered in the city Teaneck in New Jersey, has posted better than expected results during the second quarter of this year.<\/p>\n
It’s net income increased by 86.5 percent to $470 million, though analysts attribute much of this rise to the lower income tax levels it paid last year. Last year, the Indian subsidiary of Cognizant repurchased shares valued at $2.8 billion from shareholders and this led the company to take a $190 million expense last year.<\/p>\n
Even without this, the company earned 93 cents per share and this is more than the analysts’ prediction of 90 cents per share. The overall revenue also rose to $3.67 billion, slightly more than the analysts’ expectations of $3.66 billion. This revenue accounts for a nine percent increase when compared to last year.<\/p>\n
In addition, the company said that the revenue for the next quarter will be anywhere between $3.73 to $3.78 billion, and this is fairly close to the analysts’ prediction of $3.76 billion.<\/p>\n
Despite such positive results, the company’s shares rose only slightly in the stock market. This is mainly because Cognizant lowered its 2017 revenue and it estimates the revenue between $14.7 billion and $14.84 billion. Though analysts were expecting $14.76 billion, the fact that it lowered the revenue is a cause of concern for investors.<\/p>\n
This brings up the next question – why Cognizant lowered the revenue when it has posted such impressive results?<\/p>\n
The culprit is the U.S healthcare industry. Uncertainty surrounding Trump’s policies and the scrapping of Obamacare has put a lot of pressure on this industry and it has cut back spending in a big way. As a result, It service providers that offer software and maintenance support to these healthcare companies are affected.<\/p>\n
Since Cognizant gets a major chunk of its revenue from healthcare and financial services companies, it is forced to lower its forecast as it expects healthcare companies to put in tighter controls for spending.<\/p>\n
For this quarter though, revenue from the healthcare sector grew by 9.5 percent to around $1.05 billion, but this growth rate may not be sustainable over the coming year due to the confusions about healthcare policy.<\/p>\n
Otherwise, Cognizant seems to be doing well and is poised to take a big share in newer technologies like IoT.<\/p>\n
The post A Look Into Cognizant’s Results<\/a> appeared first on Cloud News Daily<\/a>.<\/p>\n","protected":false},"author":258,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[91],"tags":[],"class_list":["post-31039","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/posts\/31039","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/users\/258"}],"replies":[{"embeddable":true,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/comments?post=31039"}],"version-history":[{"count":1,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/posts\/31039\/revisions"}],"predecessor-version":[{"id":31040,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/posts\/31039\/revisions\/31040"}],"wp:attachment":[{"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/media?parent=31039"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/categories?post=31039"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/tags?post=31039"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}