Outsourcer Syntel's profit soars; outlook bright
Information technology company Syntel Inc.'s shares soared in trading Thursday after the outsourcing company said its net income rose almost 63 percent and it delivered a full-year forecast well above market expectations.
The company, based in Troy, Mich., outsources work for its clients. Stronger demand for its services drove up its revenue 17 percent, compared with a year earlier.
Syntel earned $40.7 million, or 98 cents per share, in the quarter that ended March 31. That's compared with $25 million, or 60 cents per share, a year earlier.
Its revenue was $170.7 million.
Analysts were expecting earnings of 75 cents per share and revenue of $172.1 million, according to FactSet.
For the year, Syntel said it expects to earn $3.40 to $3.65 per share, while analysts were expecting $3.28 per share. The company expects to generate revenue of $730 million to $755 million for the year; analysts' average forecast is for $738.4 million.
"While we are mindful of the global backdrop, we saw stable trends for client spending during the quarter," Syntel CEO and President Prashant Ranade said in a statement.
Syntel added 175 employees during the quarter, ending the period with 19,659 employees globally.
The company's shares jumped $7.37, or 13.7 percent, to close at $61.21. Its shares have traded between $38.10 and $62.03 in the past 52 weeks. The company reported its earnings before the markets opened Thursday.