By Senad Karaahmetovic
US-listed shares of Infosys (NYSE:INFY) are indicated to open 6.2% lower Thursday after the Indian company reported a disappointing set of earnings figures.
The company reported an EPS of $0.18 on revenue of $4.55 billion, missing the consensus for EPS of $0.19 on revenue of $4.74B. Revenue increased 16% year-over-year as retail sales surged 20% from the year-ago period. Net income increased by 7.7% YoY.
The company also reported an operating margin of 21%, missing the 21.7% consensus.
For FY24, INFY sees revenue growing 4-7% while operating margin is seen staying at 21%, below the expected 21.9%.
"We have expanded our internal program on efficiency and cost to build a path to higher margins in the medium term. We continue to invest in our people and in supporting our clients” CEO Salil Parekh said.
Infosys (NS:INFY) closed 2.74% lower in today’s Indian trading session, which makes it the worst performer on the day.
Morgan Stanley analysts highlighted a “miss on all counts.”
The analyst rates INFY stock with an Overweight rating and an INR1,625.00 ($1 = INR81.666) price target.