Why Cognizant (CTSH) is Poised to Beat Earnings Estimates Again

Core Viewpoint - Cognizant (CTSH) is well-positioned to continue its earnings-beat streak in the upcoming report, supported by a strong history of exceeding earnings estimates, particularly in the last two quarters [1][5]. Earnings Performance - For the last reported quarter, Cognizant achieved earnings of $1.21 per share, surpassing the Zacks Consensus Estimate of $1.12 per share, resulting in a surprise of 8.04% [2]. - In the previous quarter, the company was expected to report earnings of $1.14 per share but delivered $1.25 per share, yielding a surprise of 9.65% [2]. Earnings Estimates and Predictions - Estimates for Cognizant have been trending higher, influenced by its history of earnings surprises, and the stock currently has a positive Zacks Earnings ESP (Expected Surprise Prediction), indicating a strong potential for future earnings beats [5][8]. - Stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have a nearly 70% chance of producing a positive surprise, suggesting that Cognizant may follow this trend [6]. Earnings ESP and Analyst Sentiment - Cognizant has an Earnings ESP of +0.02%, indicating that analysts are optimistic about its near-term earnings potential [8]. - The combination of a positive Earnings ESP and a Zacks Rank of 3 suggests that another earnings beat may be imminent, with the next earnings report expected on April 30, 2025 [8].