Cognizant Posts 16.6% Rise in Net Profit: Ahead of the Ticker
NEW YORK (TheStreet) -- IT services firm Cognizant Technology Solutions
Revenue rose 18.1% to $2.02 billion from $1.71 billion the same period a year ago. The company had forecast revenue of at least $2 billion.
The firm also maintained its outlook of 17% revenue growth for this year. The company expects annual revenue to reach at least $8.6 billion.
Looking ahead to the next quarter, Cognizant expects revenues of at least $2.13 billion. Analysts had been expecting revenue of $2.11 billion, according Reuters.
The company also increased its share repurchase program by $500 million to $1.5 billion.
"Our performance during the first quarter was strong, and we are encouraged by the healthy demand for our broad range of services," CEO Francisco D'Souza said in a statement.
Internet provider AOL
The company said total ad revenue grew to $359 million from $330 million, and that AOL Properties display ads experienced particular strength.
Growth in search revenue helped offset a loss in subscribers. AOL said subscription revenue fell 9% from the same period a year ago to $166 million, though the decline slowed. The average monthly churn rate slightly dipped to 1.9% from 2% in the year-ago quarter.
"Growth continues at AOL," Chairman and CEO Tim Armstrong said in a statement. "AOL's strategy of being the first scaled media and technology company is clearly represented in our results today, and we will continue to aggressively drive the company toward near-and long-term growth."
Earnings at the company rose to $25.9 million from $21.1 million a year ago.