Syntel fell short of revenue expectations and lowered annual revenue guidance. The demand environment remains challenging. However, earnings results continue to impress albeit with some help from currency. Our takeaway from the recent impressive margins is that Syntel has the unique ability to protect earnings during a slow down like it did in 2009. We do not think the present environment is as difficult as 2009, but the ability to protect earnings should provide investor comfort. We maintain our BUY.
For more information, please contact:
Joseph D. Foresi