Infosys guidance shock may hit stock despite numbers bounce
Infosys secured new business in a quarterly results development.
· ET Stocks, Economic Times Markets
Infosys released its quarterly results, showing good revenue growth and stable operating margins. However, the management reduced the annual revenue guidance due to competitive pressures. The company secured a significant $2 billion deal, boosting its total contract value to $5.2 billion. Despite positive performance from some sectors, weaknesses in others contributed to the cautious outlook.
The analysis
Against that, the stock is +0.0% on the day at ₹1,153.80, and has returned +9.6% over three months. It sits 32% below its 52-week high, which means a good deal of bad news was already in the price. The it sector has moved +4.6% over the same period, so Infosys is running 5.0 points ahead of its peers.
For Infosys, the question is how much of this is already reflected in the price and how much re-rates the it peer set alongside it.
Why it matters
- Earnings versus expectations is what actually re-rates a stock; the surprise matters more than the absolute number.
Market context
- The company directly in focus is INFY.
- Sector exposure: IT.
In this story
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