Shares of Indian IT consultancy Infosys Ltd. (NYSE: NS:INFY) experienced a significant 7.3% drop on Thursday, marking its worst one-day performance, despite reporting a Q2 net income of $751 million and a 3.6% revenue increase to $4.72 billion. The company's market cap, as provided by InvestingPro, stands at 72.18B USD.
The company's stock took a hit after it cut its full-year growth forecast. CEO Salil Parekh attributed the revised outlook to slow decision-making and reduced digital transformation spending. CFO Nilanjan Roy highlighted an uncertain financial services outlook, challenges in the communications sector, cautious energy spending due to economic slowdowns, and high-interest rates impacting utilities.
Roy also acknowledged strong growth in the manufacturing sector and resilience in the retail sector. In addition, Infosys lowered its fiscal 2024 revenue-growth outlook. According to InvestingPro Data, the company's revenue growth for LTM2024.Q1 was 8.32%, with a quarterly growth of 3.89%.
Despite Thursday's sharp decline, INFY stock has seen a modest increase over the past three months, rising by 1.6%. During the same period, the iShares MSCI India exchange-traded fund (NYSE:INDA) has risen by 0.2%, while the S&P 500 (INDEXSP:.INX) has slipped by 2.4%.
InvestingPro Tips suggests that Infosys is a prominent player in the IT Services industry, operating with a high return on assets, and has consistently increased earnings per share. The company's return on assets for LTM2024.Q1, as provided by InvestingPro, was 19.35%. The company's management has also been aggressively buying back shares, indicating confidence in the company's future performance.
It's worth noting that these are just a few of the insights available on the InvestingPro platform. For those interested in gaining access to more detailed metrics and tips, consider checking out InvestingPro's offerings here.
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