We expect a solid currency-driven EPS beat/raise (revenue likely about in line); view risk/reward as reasonably balanced. We expect a solid EPS beat/raise, as currency has moved nicely into the company’s favor since they reported Q1 results. Yet we believe that significant upside to the stock may be limited given (1) somewhat choppy industry trends; (2) currency benefits can be transitory (quickly can move the other way); (3) the NTM multiple is similar to that of faster-growth CTSH.
For more information, please contact:
David J. Koning, CFA