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Infosys stock climbed Wednesday as December-quarter revenue topped estimates and the information technology services firm raised its annual revenue guidance.
The India-based company released fiscal third-quarter earnings before the market open. Infosys stock gained 2.9% to close at 25.75 on the stock market today.
Infosys (INFY) said it earned 18 cents a share, up a penny from the year-earlier period. Profit met expectations.
Revenue rose 21% to $4.25 billion, topping estimates of $4.13 billion.
“Revenues came in better, rising 21.5%, the fastest in 11 years on strong 42.6% digital growth rate,” said Susquehanna analyst James Friedman in a report.
He added: “Margins were better than feared — down only 10 basis points — driven primarily by wage increases and increased sub-contractor usage.”
Infosys said it expects revenue growth of 19.5% to 20% for the fiscal year ending in March, compared with its earlier projections of 16.5% to 17.5%.
The company competes with India-based Tata Consultancy Services, Cognizant Technology Solutions (CTSH), Accenture (ACN) and others.
INFY stock holds a flat-base entry point of 24.38. Heading into the Infosys earnings report, shares traded in a 5% buy zone.
Infosys stock also holds a Relative Strength Rating of 92 out of a best-possible 99, according to IBD Stock Check-up.
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Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
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