Infosys Slips As Earnings Miss Forecasts, Margin Outlook Disappoints By Investing.com

By Dhirendra Tripathi

Investing.com – Infosys (NYSE:INFY) shares fell more than 4% Wednesday after the company’s fourth quarter earnings and revenue narrowly missed analysts’ forecasts.

Infosys announced earnings per share of 16 cents on revenue of $3.61 billion. Analysts polled by Investing.com anticipated EPS of 16.26 cents on revenue of $3.62 billion.

The company has projected revenue growth of 12% to 14% in constant currency terms in fiscal year 2022, with operating margin seen between 22% and 24%, lower than the 24.5% of fiscal year 2021.

Revenue growth of 2% for the quarter ended March came below Street estimates. Margin and net profit contracted sequentially.

The company will buy back shares on the open market through the Indian stock exchanges, amounting to approximately $1.23 billion.

Nomura had on Monday estimated the company’s buyback to happen at a maximum price of $22. As per the company’s announcement, the price could hit $23.3 per ADS.