Infosys Ltd ADR (NYSE: INFY) in the quarter ended 31st December has missed the consensus adjusted earnings per share by 4.35%. The consensus earnings per share were $0.23.
Infosys Ltd (NSE: INFY) in the third quarter has reported the earnings per share of 24 cents, beating the analysts’ estimates for the earnings per share of 23 cents. The company had reported the revenue of to 2.55 billion in the third quarter 2016, missing the analysts’ estimates for revenue of $2.58 billion.
INFY’s consolidated results for the quarter met the street estimates as the net profit for the quarter was marginally better by 3.89 % than the estimated figure of Rs. 3569 crores. EBITDA for the quarter was flat at Rs.4767 cr compared to Rs.4733 cr in last quarter that led to the margin expansion of 30 bps.
The Rupee revenue during the third quarter declined 0.2 percent to Rs 17,273 crore and dollar revenue also fell 1.4 percent to USD 2,531 million compared with the previous quarter, with volume growth of 0.2 percent. The dollar revenue growth in constant currency has fallen 0.3 percent QoQ. The dollar revenue had fallen for the first time in last seven quarters due to RBS deal cancellation and seasonal weakness.
The manufacturing remained weak due to lower billing days in the third quarter, which is expected to bounce back in Q4 while retail continued to be volatile and energy was also weak. INFY expects most of the sectors to bounce back next year apart from energy.
Geographically, in the third quarter, North America business has declined by 0.6 percent both sequentially & in constant currency and the Europe revenue fell by 2.5 percent sequentially but grew by 1 percent in constant currency.
On the other hand, in the third quarter, INFY has added 77 clients and also added 2 clients in USD 75 million revenue category, 9 clients in USD 10 million categories and 1 client in USD 25 million revenue category. In addition, the total active clients at the end of December quarter were at 1,152 that has increased from 1,136 clients in the previous quarter.
Meanwhile, Infosys maintained its revenue growth guidance in the range of 8.4- 8.8% as compared to the earlier guidance of 8-9% in constant currency for FY17E. However, the company has lowered its full-year 2017 dollar revenue guidance to 7.2-7.6% from the earlier guidance of 8.6-9% and rupee revenue guidance to 10-10.4 percent from 10.9-11.9 percent.
Infosys Ltd ADR stock has been under since the last six months and fell over 16.5% (as of January 12th, Source: Google Finance). According to tipranks.com, 3 analysts has covered the stock while recommending a “Hold”. Infosys Ltd ADR has an average price target of $17, which is a further upside of 11.48%.