Cognizant Stock Gains 6% Following Q1 Beat

Cognizant (NASDAQ:CTSH) shares surged more than 6% yesterday after the company posted its Q1 earnings results, with EPS of $1.11 beating the Street estimate of $1.04. Revenue came in at $4.8 billion, better than the Street estimate of $4.73 billion.

According to the analysts at RBC Capital, the beat and bookings growth appear to be early signs that management’s focus on (1) the company becoming an employer of choice (attrition improved to 23% vs. 26% last quarter and 30% last year), (2) accelerating large deals, and (3) enhancing operational excellence are beginning to bear fruit.

For Q2/23, management anticipates revenue in the range of $4.83-4.88 billion, compared to the Street estimate of $4.86 billion. For the full year, EPS is seen at $4.11-$4.34, compared to the Street estimate of $4.43. Revenue is seen at $19.2-19.6 billion, compared to the Street estimate of $19.56 billion.