earnings Archive
Surprising Strong Profit Performance by Syntel and TCS Bodes Well for the Industry
On August 5, 2014 In Thought Leadership
The Q2 earnings reports for Syntel and TCS show not only a strong performance for both companies but, surprisingly, show stronger earnings growth than revenue growth. We’ve seen stronger earnings than revenue results with other providers in the past, but this is surprising. That’s because it reverses a trend the industry has been experiencing.
The Son-in-Law
On April 7, 2014 In Thought Leadership
To date, the global services industry in 2014 has all the signs of being a “son-in-law.” As many parents will tell you about their prospective son-in-law: “He’s nice, but … I was hoping for something a little better.” 2014 arrived with so much promise, both in IT and BPO. Europe’s economy was improving. We
Pondering TCS’s Modest Morsel
On March 25, 2014 In Thought Leadership
TCS posted industry-leading financial results in its FQ4 2013 report. But what caught my attention was its quarterly guidance to investors where management stated they believe TCS can add “a few billion dollars” from digital as a growth driver. Really? Just a few billion? We believe TCS is substantially underplaying its digital hand. Management
Genpact’s Q4 Performance: A Cautionary Tale for All Service Providers
On March 17, 2014 In Thought Leadership
The past year was not kind to Genpact. Q4 results show it underperformed the S&P by 25 percent over the last six months and by 7 percent year to date. This is surprising given that Genpact is a great organization with a record of superb delivery and a history of great performance. Unfortunately Genpact
Cognizant Shows New Signs of a Market Maturing
On March 13, 2014 In Thought Leadership
In its latest quarterly earnings report, Cognizant recently guided to slower growth than they achieved last year. Although it is usual for Cognizant to be conservative in its guidance, it is still notable that it is sanguine about repeating last year’s strong performance in what most regard as an improving economy. Cognizant has been
IBM Remakes Itself
On March 10, 2014 In Thought Leadership
You can bet IBM Global Services doesn’t want any more earnings announcements like its Q4 2013 report. Big Blue posted year-over-year revenue growth of only 4 percent instead of the 7 percent it indicated just three months ago and its 5 percent Q3 growth. Its margins are good, but clearly IBM has a growth
The ABCs of WNS
On February 25, 2014 In Thought Leadership
The jury’s in — the back-to-basics strategy is working at WNS. The results of this strategy pop out in its FQ3-14 earnings report. Net revenue increased 5 percent to $120 million. Gross profit increased 16 percent year over year to $45 million. SG&A expense went down four percent. Adjusted earnings per share rose to