Infosys' stock falls for a 7th straight day, the longest loss streak in 2 years
By Tomi Kilgore
IT consultant's stock bounces sharply off a 9-month low, but still heads for lowest close in five months
Shares of Infosys Ltd. bounced sharply off its lows, but not enough to snap a long losing streak after the India-based information-technology consultant reported fiscal fourth-quarter revenue that missed expectations, and said it cut back on a contract with a large customer.
The U.S.-listed stock (INFY) fell 0.9% in midday trading, to put it on track for the lowest close since Nov. 13. Earlier, it was down as much as 5.4% at the intraday low of $16.04, the lowest price seen since July 20, 2023.
The stock was also headed for a seventh straight decline, which would be the longest losing streak since the eight-day stretch that ended April 14, 2022. The stock has shed 7.7% during its current streak.
For the quarter to March 31, revenue of $4.56 billion was down 2.1% from the previous quarter but up 0.2% from the same period a year ago. The results came up short of the FactSet consensus of $4.61 billion.
The company said during the quarter, it had a "rescoping and renegotiation" of one of the large contracts in the financial services segment, which led to a one-time impact of about one percentage point. Nearly 85% of the contract continued "as-is."
Cost of sales increased 1.7% to $3.22 billion, while operating profit fell 4.2% to $917 million, leading to an operating margin of 20.1%, which was down from 21.0% a year ago.
Net income rose to $914 million, or 23 cents a share, from $830 million, or 18 cents a share, a year ago. The FactSet consensus was for earnings per share of 18 cents.
Free cash flow increased 18.9% to $848 million, which was the highest in the last 11 quarters.
The stock has dropped 8.7% year to date, while the iShares MSCI India ETF INDA has gained 4.8% and the S&P 500 index SPX has advanced 5.8%.
-Tomi Kilgore
This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
04-18-24 1138ET
Copyright (c) 2024 Dow Jones & Company, Inc.-
What’s the Difference Between the CPI and PCE Indexes?
-
Powell Unfazed By Sticky Inflation, but Rate Cuts Are Far Off
-
After Earnings, Is Microsoft Stock a Buy, a Sell, or Fairly Valued?
-
Best- and Worst-Performing Stocks of April 2024
-
Magnificent 7 Stocks Earnings Updates: AI Remains the Focus
-
Small-Cap and Value Stocks Are Undervalued
-
Why We Expect the Job Market’s Slowdown to Renew in 2024
-
5 Undervalued Stocks to Buy to Play a Little Defense
-
Cognizant Earnings: Improved Profitability Buttresses Results as Customer Spending Remains Muted
-
10 Top-Performing Dividend Stocks of the Month
-
Marathon Petroleum Earnings: No Change to Competitive Position, but Shares Look Expensive
-
Charlie Munger and How Not to Invest
-
Look Inside Berkshire Hathaway’s Portfolio Before Its Annual Meeting
-
After Earnings, Is AT&T Stock a Buy, a Sell, or Fairly Valued?
-
Mastercard Earnings: A Stable Environment Highlights the Firm’s Strengths
-
Pfizer Earnings: Solid Results Supported by Steady Tracking Toward $4 Billion In Cost Cuts