Shares of Indian IT major Infosys (NYSE:INFY) rose nearly 3% in the early session today after the company announced its results for the third quarter. Revenue of $4.66 billion remained essentially flat, missing estimates by a margin of $10 million. At the same time, EPS of $0.18 landed in line with estimates.
The company saw large deal wins worth $3.2 billion during the quarter, with nearly 71% being net new deals. Further, its free cash flow remained robust at $665 million. However, Infosys’ operating margin declined by 1% to 20.5%.
Notably, the company achieved impressive deal wins and a continued decline in attrition levels during a seasonally weak quarter. Looking ahead to Fiscal Year 2024, Infosys expects revenue growth of 1.5% to 2%. In addition, the operating margin is anticipated to hover between 20% and 22%.
Are Infosys Shares a Good Buy?
Today’s price gains further build on the 13% rise in Infosys’ share price over the past six months. Overall, the Street has a Moderate Buy consensus rating on Infosys, and the average INFY price target of $18.83 implies a further 4% potential upside in the stock.
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