Infosys reported results below expectations and lowered guidance. The company continues to battle a soft economic backdrop, execution risk derived from company specific changes, and an industry leading margin profile creating a potential barrier to growth. The comparatively better results of a competitor announced the same day imply that perhaps a higher portion of Infosys’ struggles are company specific. We remind investors that a difficult demand environment on the macro level affects all outsourcers, just some are better positioned than others. We remain NEUTRAL.
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Joseph D. Foresi