iGate Q4 tops Wall Street estimates on strong margins
Software company iGate, which recently sealed a USD 1.2 billion deal to acquire a majority stake in Patni Computer Systems, reported quarterly results that topped Wall Street expectations, helped by strong margins.
January 19, 2011 / 18:08 IST
Software company iGate, which recently sealed a USD 1.2 billion deal to acquire a majority stake in Patni Computer Systems, reported quarterly results that topped Wall Street expectations, helped by strong margins.
Fremont, California-based iGate said the Patni deal, expected to help it take on bigger rivals in India's export-driven IT services industry, would close in the first half of 2011.iGate expects the acquisition to add to its adjusted earnings by 2012 and take the combined company close to USD 1 billion in revenue.iGate's October-December earnings were USD 14.7 million, or 25 cents a share, compared with USD 8.6 million, or 15 cents a share, last year. Excluding items, the company earned 34 cents a share.Sales jumped 55% to USD 81 million.Analysts were looking for earnings of 26 cents a share, on sales of USD 80.3 million, according to Thomson Reuters.Fourth-quarter gross margin at the company, which competes with Cognizant Technologies and Genpact Ltd, rose to 42.7% from 40.6% last year.iGate's results follow a mixed bag of earnings from India's USD 60-billion outsourcing sector. While Infosys reported a weak profit, top exporter Tata Consultancy Services beat forecasts with a 30% rise in profit.iGate shares, which have shed about a fifth of their value over the last one month, closed at USD 16.26 on Tuesday on Nasdaq. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
