Cognizant Technology Solutions Corp, the New York-based provider of application development tools and Year 2000/Euro conversion services, has issued an uncommon positive pre-announcement for its first quarter ending March 31. The company said it expects to report diluted earnings per share of about $0.27, an increase of 170% from earnings in the year-ago period and three cents above the current consensus estimate of analysts surveyed by First Call.
The solid quarter was fueled by strong demand for application maintenance and development services. The company also boasts of success in its conversion of existing Y2K clients to other work continues and claims to have added five new clients during the quarter. In addition, rapid growth in healthcare and e-commerce practices have provided a revenue boost. Cognizant shares celebrated the news with a two-day rally of $4.625, or 18%, to close at $30 on Thursday – a much needed boost. The company will report final first quarter results on April 21.
