Syntel, Inc. (SYNT) continues its streak of earnings surprises as estimates and share price spikes.
Company Description
Syntel provides tech services to companies and public entities. Services are divided into the e-Business, Application Outsourcing, and Teamsourcing.
Tops Forecasts
On Jul 29 Syntel reported second-quarter results that included earnings per share of 61 cents, topping the Zacks Consensus Estimate by a dime. Total revenue dipped to $100 million from $103 million, but the margins improved significantly to 48.2%.
CEO Speaks
“Syntel was encouraged by improved stabilization in the marketplace and the increasingly positive discussions initiated with our clients during the quarter,” said Chief Executive Officer and President Keshav Murugesh.
Estimates Spike
Following the release, the full-year estimates for this year and next have spiked. The Zacks Consensus Estimate for 2009 is now $2.43, up from $2.20. Estimates for next year are averaging $2.40, a slight dip year-over-year, but up from $2.11.
This years growth rate is expected to be nearly 20%.
The Chart
Shares of SYNT continue to climb and show no signs of slowing. If estimates for next year start to show positive growth, the company could continue well into next year.
