Infosys stock climbed Wednesday as June-quarter revenue topped estimates and the India-based information technology services firm hiked its full-year sales outlook.
The company released earnings before the market open. Infosys (INFY) said it earned 17 cents a share, up from 13 cents per share in the year-earlier period. Profit met expectations.
Revenue rose 17% to $3.78 billion, topping estimates of $3.71 billion.
The company said it expects revenue growth of 14% to 16% for the financial year ending in March 2022, compared with its earlier projections of 12% to 14%.
Infosys stock gained 3.5% to 21.78 just after the opening bell on the stock market today. INFY stock has gained 24% in 2021.
Infosys Stock: Margins Miss Estimates
The company has stepped up investments under Salil Parekh.
“Infosys’ margins were down 80 basis points and missed estimates,” Jefferies analyst Akshat Agarwal said in a note to clients. “Management highlighted that higher subcontracting costs and higher employee-led costs dragged margins, despite benefits from higher utilization and currency.”
“Revenue growth was healthy across regions,” Agarwal went on to say. “Digital revenues, up 10% quarter-over-quarter, continued to be the key growth driver.”
Shares Trading Above Flat-Base Entry
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