Shares of Cognizant Technology Solutions (CTSH) rose 6.3% in pre-market trading on Thursday after the consulting and outsourcing company reported better-than-expected 2Q earnings. Its adjusted EPS of $0.82 beat analysts’ estimates of $0.69. Meanwhile, its revenues of $4 billion also surpassed Street estimates of $3.84 billion.
The company provided strong guidance for full-year 2020. It expects revenues between $16.4 billion and 16.7 billion, which is higher than the Street estimates of $16.3 billion. Its adjusted EPS guidance of $3.48-$3.58 is also way above analysts’ expectations of $3.39.
Following its 2Q earnings and upbeat guidance, JPMorgan analyst Tien Tsin Huang upgraded CTSH to Hold from Sell and raised the price target to $69 from $62.
Overall, the Street has a cautious outlook on CTSH. The Hold analyst consensus is based on 8 Holds, 4 Sells and 6 Buys. The average price target of $62.83 implies downside potential of 3%. (See CTSH stock analysis on TipRanks).