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Infosys Stock Climbs As Infotech Services Firm Hikes Revenue Outlook

Infosys stock climbed Wednesday as June-quarter revenue topped estimates and the India-based information technology services firm hiked its full-year sales outlook.




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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

Infosys competes with Tata Consultancy Services, Cognizant Technology Solutions (CTSH), Accenture (ACN) and others.

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

Infosys stock trades above a flat-base entry point of 19.58. INFY stock holds a Relative Strength Rating of 82 out of a best-possible 99.

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Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.

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