Cognizant Technology Solutions Earnings Preview: Analysts Expect Rising Revenue

Cognizant Technology Solutions CTSH releases its next round of earnings this Tuesday, August 2, 2011. Here is Benzinga's everything-that-matters guide for this Tuesday's second quarter earnings announcement.

Earnings and Revenue:

Wall Street expects a EPS of 66 cents per share and revenues of $1.46 billion. Cognizant Technology Solutions' latest numbers will no doubt be compared with the company's year-ago quarter, when it reported a positive EPS of 56 cents per share on revenues of $1.11 billion. We'll have to wait for Tuesday to see if Cognizant Technology Solutions has accomplished the estimated 17.9% rise in EPS and 31.5% increase in revenues on a year-over-year basis.

Here's how the company's reported EPS has stacked up against analyst estimates in the past:

Stock Performance:

Shares of Cognizant Technology Solutions were trading at $69.88 as of July 27, 2011. Shares are down 4.7% year to date. For a full 12 months, the return has risen by 7.8%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.

• Long-term shareholders are already enjoying 12-month gains prior to the announcement

Average Stock Rating:

The average rating by analysts for Cognizant Technology Solutions is a Moderate Buy. The strength of this rating has declined slightly over the past three months.

Competitors:

Wondering how some of the other information technology companies are doing? Here are a few of Cognizant Technology Solutions' peers in that sector.

• CIBER CBR: Strong Buy with a $0.06 recent quarter EPS
• Computer CSC: Hold with a $1.01 recent quarter EPS
• Edgewater Technology EDGW: Strong Buy with a $0.03 recent quarter EPS
• International Business Machines IBM: Moderate Buy with a $3.09 recent quarter EPS

The business software services company's industry has seen price/earnings growth of 1.7% during the current fiscal year.

Finally, a description of the company's main areas of operation: Cognizant Technology Solutionsration provides custom IT consulting and technology services as well as outsourcing services for companies in North America, Europe and Asia.

Take Action:

That's your advanced look at Cognizant Technology Solutions' upcoming earnings numbers -- be ready to take quick action if the company's report contains any surprises. Also, check back in with us after the announcement for a full recap and what-to-do-next guide.

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