The currency-neutral 3% decline in sales in constant currencies includes the impact of the customer’s exit from financial services

The currency-neutral 3% decline in sales in constant currencies includes the impact of the customer's exit from financial services

February 04, 2021

Realizing Technology Solutions Corp. (NASDAQ: CTSH) reported a 3.0% revenue decline in constant currency for the fourth quarter, taking into account the impact of the expected retirement and certain content service exits.

“We have achieved a lot over the past year while keeping an eye on our customers and talented people,” said CEO Brian Humphries.

(Million US dollars) Q4 2020 Q4 2019 % Change % constant currency
revenue $ 4,184 $ 4,284 -2.3% -3.0%
Net result $ 316 $ 395 -20.0%

Financial services revenue declined 11.4% in the fourth quarter, driven by declines in banking and insurance. Cognizant also reported that it had made an offer to wind up and end a large customer exposure in continental Europe. “Most of all, the fourth quarter of 2020 resulted in a decrease in revenue of $ 107 million and additional expenses of $ 33 million as a result of this offering related to the depreciation of long-lived assets. “

Healthcare revenue was driven by both healthcare and life sciences.

The decline in products and resources was due to retail, consumer goods, travel and hospitality customers who were particularly hard hit by Covid-19. However, this was partially offset by growth in manufacturing, logistics, energy and utilities.

Sales in the communications, media and technology sectors increased and benefited from the recent acquisitions.

Vertical sales by industry

(Million US dollars) Q4 2020 % Change % constant currency
Financial services $ 1,305 -11.1% -11.4%
Health care $ 1,270 4.0% 3.3%
Products and resources $ 948 -1.6% -2.4%
Communication, media and technology $ 661 4.6% 3.4%

Income by geography

(Million US dollars) Q4 2020 % Change % constant currency
North America $ 3,206 -1.1% -1.1%
United Kingdom $ 339 0.6% -2.3%
Continental Europe $ 360 -16.1% -20.7%
rest of the world $ 279 0.7% 1.4%

Annual results

(Million US dollars) FY 2020 FY 2019 % Change % constant currency
revenue $ 16,652 $ 16,783 -0.8%
Net result $ 1,392 $ 1,842 -24.4%

Guidance

For the first quarter, Cognizant expects currency-neutral sales growth of between 1.0% and 2.0%. Revenue for the full year is expected to increase between 4.0% and 7.0% after adjusting for currency effects.

Share price and market capitalization

Cognizant shares fell 6.08% to $ 74.52 as of 1:06 p.m. Eastern Time. They were 9.92% below their 52-week high on December 17, 2020, according to FT.com. The company had a market cap of $ 42.42 billion.

Via: www2.staffingindustry.com

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