Cognizant Powers Ahead on Cloud Momentum, Cigna Lifted Forecast

Mukesh Buch
05 May, 2017
New York City

Air Lease revenues rose as new industry order slows and backlog grows worrying supply issues. Cognizant revenues soars but offers softer guidance and ramps up U.S. hiring. CIGNA lifted fiscal forecast and insurer was silent on Anthem petition with the Supreme Court.

[R]1:00 PM New York – Air Lease revenues rose as new industry order slows and backlog grows worrying supply issues. Cognizant revenues soars but offers softer guidance and ramps up U.S. hiring. CIGNA lifted fiscal forecast and insurer was silent on Anthem petition with the Supreme Court.[/R]

Tollbooth Index increased 13.28 to 12,176.55.

Earnings Review

Air Lease Corp ((AL)) plunged 7.3% or $2.81 to $35.57 after the aircraft leasing services provider said revenues in the first-quarter ending in March rose 4.9% from a year ago to $360.2 million.

Net income in the quarter declined 8.5% to $84.9 million or 78 cents per diluted share from $92.9 million or 85 cents in the same quarter last year.

Cognizant Technology Solutions Corp ((CTSH)) jumped 3.1% or $1.87 to $62.62 after the reported revenues in the first-quarter ending in March jumped 10.7% from a year ago to $3.5 billion.

Net income in the quarter soared 26.3% to $557 million or 92 cents per diluted share from $441 million or 72 cents in the same quarter last year.

Cognizant estimated second-quarter revenues in the range of $3.63 billion to $3.68 billion and diluted earnings per share of about 89 cents.

In fiscal 2017, the information technology company revenues forecasted between $14.56 billion and $14.84 billion and diluted earnings per share of about $3.64.

""We''re making good progress in shift to digital services and solutions to create value for clients and shareholders, positioning us well to achieve both our revenue and margin targets for this year,"" said chief executive officer Francisco D''Souza.

CIGNA Corporation ((CI)) increased 1.8% or $2.84 to $159.57 after the insurance and health services provider said total revenues in the first-quarter ending in March advanced 5% from a year ago to $10.4 billion.

Net income in the quarter surged 15.2% to $598 million or $2.30 per diluted share from $519 million or $2 in the same quarter last year.

CIGNA said revenues growth reported in each of business segments on mainly after strong business in commercial healthcare and global supplemental benefits segments, partially offset by contraction, as expected, in our seniors business.

Consolidated Edison, Inc ((ED)) gained 1.1% or 90 cents to $79.78 after the electric, gas and steam services provider stated revenues in the first-quarter ending in March increased 2.2% from a year ago to $3.23 billion.

Net income in the quarter jumped 25.1% to $388 million or $1.27 per diluted share from $310 million or $1.05 in the same quarter last year.

Moody''s Corporation ((MCO)) slipped 1.6% or $1.90 to $117.50 after the credit ratings services provider reported revenues in the first-quarter ending in March soared 19% from a year ago to $975.2 million.

Net in the quarter swung to a loss of $37.4 million or 71 cents per diluted share from profit of $11 million or 21 cents in the same quarter last year.

Marathon Oil Corporation ((MRO)) rose 4 cents to $14.20 after the oil explorer reported revenues in the first-quarter ending in March increased 2.2% from a year ago to $3.23 billion.

Net loss in the quarter widened to $4.96 billion or $5.84 per diluted share from $407 million or 56 cents in the same quarter last year.

Revlon Inc ((REV)) tumbled 22.2% or $5.60 to $19.65 after the beauty and personal care products maker said net sales in the first-quarter ending in March surged 35.3% from a year ago to $594.9 million.

Net income in the quarter soared 26.3% to $557 million or 92 cents per diluted share from $441 million or 72 cents in the same quarter last year.