TEANECK, N.J., May7, 2018 - Cognizant Technology Solutions Corporation (Nasdaq: CTSH), one of the world's leading professional services companies, today announced its first quarter 2018 financial results.
Highlights - First Quarter 2018*
- Quarterly revenue rose to $3.91 billion, up 10.3% from the year-ago quarter.
- Quarterly GAAP diluted EPS was $0.88, compared to $0.92 in the year-ago quarter.
- Quarterly non-GAAP diluted EPS2 was $1.06, compared to $0.84 in the year-ago quarter.
Revenue for the first quarter of 2018 rose to $3.91 billion, up 10.3% from $3.55 billion in the first quarter of 2017. GAAP net income was $520 million, or $0.88 per diluted share, compared to $557 million, or $0.92 per diluted share, in the first quarter of 2017. Non-GAAP diluted EPS was $1.06, compared to $0.84 in the first quarter of 2017. GAAP operating margin was 17.7% and non-GAAP operating margin** was 20.3% for the first quarter of 2018.
"We achieved solid financial results in the first quarter and progressed our shift to digital services and solutions," said Francisco D'Souza, Chief Executive Officer. "Cognizant has built the capabilities and scale to help clients digitize their offerings, create personalized customer experiences, instrument their operations, and modernize their IT infrastructure. This digital-at-scale value proposition is winning with clients and positioning us well to deliver a strong 2018."
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* On January 1, 2018, we adopted ASC Topic 606, "Revenue from Contracts with Customers," or the New Revenue Standard, using the modified retrospective method. Results for reporting periods beginning after January 1, 2018 are presented under the New Revenue Standard, while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting. For the three months ended March 31, 2018, adoption of the New Revenue Standard had a positive impact on revenue of $21 million, income from operations of $29 million and diluted earnings per share of $0.04 per share.
** Non-GAAP diluted EPS and non-GAAP operating margin exclude stock-based compensation costs and acquisition-related charges, realignment charges and, in the case of non-GAAP diluted EPS, net non-operating foreign currency exchange gains or losses, and the effect of recognition of an income tax benefit previously unrecognized in our consolidated financial statements related to a specific uncertain tax position (for the three months ended March 31, 2017 only). Reconciliations of non-GAAP diluted EPS and non-GAAP operating margin to the corresponding GAAP measures are included at the end of this release.
Second Quarter & Full Year 2018 Outlook
The Company is providing the following guidance:
- Second quarter 2018 revenue expected to be in the range of $4.00 billion to $4.04 billion.
- Second quarter 2018 non-GAAP diluted EPS3 expected to be at least $1.09.
- Full year 2018 revenue expected to be in the range of $16.05 billion to $16.30 billion.
- Full year 2018 non-GAAP diluted EPS*** expected to be at least $4.47.
"First quarter results demonstrate solid execution of our plan to drive sustainable revenue growth while increasing margins," said Karen McLoughlin, Chief Financial Officer."Our full year 2018 non-GAAP diluted EPS guidance reflects a higher than originally anticipated effective income tax rate due to the updated interpretation of the U.S. Tax Cuts and Jobs Act of 2017. Our strong balance sheet and cash flows continue to support both our capital return program and our investments in the business to drive future growth and continue our shift to digital services and solutions."
Return of Capital Program
The Company has declared a quarterly cash dividend of $0.20 per share on Cognizant Class A common stock for shareholders of record at the close of business on May 22, 2018. This dividend will be payable on May 31, 2018.
As previously announced, on March 13, 2018, we entered into an accelerated share repurchase agreement to repurchase an aggregate of $300 million of Cognizant's Class A common stock. We are on track to complete our plan, announced in February 2017, to return $3.4 billion to our shareholders by the end of 2018.
Conference Call
Cognizant will host a conference call on May7, 2018 at 8:00 a.m. (Eastern) to discuss the Company's first quarter 2018 results. To listen to the conference call, please dial (877) 810-9510 (domestically) and (201) 493-6778(internationally) and provide the following conference passcode: "Cognizant Call."
The conference call will also be available live on the Investor Relations section of the Cognizant website at
http://investors.cognizant.com. Please go to the website at least 15 minutes prior to the call to register and to download and install any necessary audio software. An earnings supplement will also be available on the Cognizant website at the time of the conference call.
For those who cannot access the live broadcast, a replay will be available by dialing (877) 660-6853 for domestic callers or (201) 612-7415 for international callers and entering 13677713 from two hours after the end of the call until 11:59 p.m. (Eastern) on Monday, May 21, 2018. The replay will also be available at Cognizant's website
www.cognizant.com for 60 days following the call.
*** A full reconciliation of non-GAAP diluted EPS guidance to GAAP diluted EPS guidance on a forward-looking basis cannot be provided without unreasonable efforts, as we are unable to provide reconciling information with respect to acquisition-related charges, realignment charges and net non-operating foreign currency exchange gains or losses, and the tax effects of these adjustments, as well as the tax effects of stock-based compensation expense, all of which are adjustments to non-GAAP diluted EPS. The reconciling information for non-GAAP diluted EPS guidance to GAAP EPS guidance that is available without unreasonable efforts is included at the end of this release.
BERICHT VOOR DE REDACTIE
Over Cognizant
Cognizant (Nasdaq-100: CTSH) is een van 's werelds grootste professionele dienstverleners. De organisatie helpt klanten hun business-, operationele en technologiemodellen te transformeren voor het digitale tijdperk. De unieke marktgerichte en adviserende benadering van Cognizant ondersteunt klanten bij het creëren en implementeren van een innovatievere en efficiëntere bedrijfsvoering. Cognizant heeft zijn hoofdkantoor in de VS, staat in de Fortune 500-lijst op nummer 205en wordt gezien als een van de meest bewonderde bedrijven ter wereld. Lees meer over hoe Cognizant organisaties begeleidt bij het bereiken van digitaal leiderschap op
www.cognizant.com of volg ons via
@Cognizant.