UPDATE 2-Cognizant Q2 profit rises; cuts 2008 outlook
(Recasts; adds conference call comments, Q3 outlook)
July 31 (Reuters) - Cognizant Technology Solutions Corp (CTSH.O: Cotización) reported a quarterly profit in line with analysts' expectations, but the information technology service provider lowered its 2008 outlook.
The company expects slower growth in its payer segment of healthcare for the rest of the year as it sees one of its top five clients scaling back spending "significantly," CEO Francisco D'Souza said in a conference call with analysts
For the third quarter, the company, whose clients include Aetna Inc (AET.N: Cotización) and Molina Healthcare (MOH.N: Cotización), expects earnings of 37 cents a share, on revenue of $723 million. Excluding items, it expects to earn 41 cents a share.
Analysts were expecting earnings of 38 cents a share, before items, on revenue of $744.1 million.
For 2008, the company expects to earn $1.44 a share, on revenue of $2.81 billion. It had previously forecast a profit of $1.50 a share, on revenue of $2.95 billion.
Excluding items, it now expects to earn $1.61 a share, down from its previous forecast of $1.67.
Cognizant posted second-quarter earnings of $103.9 million, or 35 cents a share, compared with earnings of $82.3 million, or 27 cents a share, in the year-ago period.
Excluding stock-based compensation and stock-based Indian fringe benefit tax expenses, the company earned 39 cents a share. Continuación...