Earnings Alerts

Tata Consultancy Svcs (TCS) Earnings: Q2 Net Income Below Estimates Despite Revenue Beat

  • Tata Consultancy’s second-quarter net income was reported at 120.75 billion rupees, which was below the estimated 125.6 billion rupees.
  • The company’s revenue for the same period was 657.99 billion rupees, slightly exceeding the estimated 652.68 billion rupees.
  • Total costs incurred by the company amounted to 494.63 billion rupees.
  • Employee benefits expenses were noted at 386.06 billion rupees, higher than the anticipated 377.55 billion rupees.
  • Depreciation and amortization costs stood at 14.13 billion rupees, surpassing the estimate of 13.91 billion rupees.
  • There were 32 buy recommendations, 13 hold recommendations, and 6 sell recommendations.

Tata Consultancy Svcs on Smartkarma

Analysts on Smartkarma are divided in their coverage of Tata Consultancy Services (TCS). Gaudenz Schneider‘s report anticipates a larger-than-usual post-earnings move for TCS, highlighting potential impacts on the Nifty 50 and Sensex due to commentary on H-1B visa fees. On the other hand, Sreemant Dudhoria, CFA takes a cautious view, citing revenue declines and margin pressures. TCS is shifting focus to AI amid macro uncertainties, with a cautious outlook despite Total Contract Value (TCV) growth. In contrast, Sudarshan Bhandari‘s bullish analysis sees TCS adapting to macro uncertainties and optimizing capital allocation, aligning efforts to tap into digital growth amidst strategic updates from other market leaders.


A look at Tata Consultancy Svcs Smart Scores

FactorScoreMagnitude
Value2
Dividend5
Growth3
Resilience5
Momentum2
OVERALL SMART SCORE3.4

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Based on the Smartkarma Smart Scores, Tata Consultancy Services shows a promising long-term outlook. With a high Dividend score of 5, investors can expect good returns in the form of dividends. The company’s strong Resilience score of 5 indicates its ability to weather economic downturns and challenges effectively, providing stability in uncertain times. Additionally, the Growth score of 3 suggests potential for expansion and development in the future. However, the Value and Momentum scores, both at 2, show areas where the company may need to focus on to improve its overall performance.

Tata Consultancy Services, under Tata Sons Limited, is a renowned global IT services provider serving a wide range of industries, including finance, banking, insurance, telecommunication, transportation, retail, manufacturing, pharmaceutical, and utilities. With a focus on innovation and technology solutions, the company is well-positioned to capitalize on the growing digital transformation trends across various sectors, potentially leading to sustained growth and profitability in the long run.


Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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