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.
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Joseph D. Foresi
About the Author: Ben Trowbridge is an accomplished Outsourcing Advisor with extensive experience in outsourcing and managed services. As a former EY Partner and CEO of Alsbridge, he built successful practices in Transformational Outsourcing, BPO, IT Outsourcing, and Cybersecurity Managed Services. Throughout his career, Ben has advised a broad range of clients on outsourcing and global business services strategy and transactions. As the current CEO of the Outsourcing Center, he provides valuable insights and guidance to buyers and managed services executives. Contact him at [email protected].