Shares of Wipro Ltd rose. On Friday, after an India-based IT consulting firm beat fiscal third-quarter earnings expectations, snapping a string of profit losses amid a jump in big deals, fueling hopes that its IT business is bottoming out. He hits.
“In a seasonally weak quarter, deal booking momentum remained strong,” said Thierry Delaporte, CEO of Wipro. “Our larger deals recorded 20 percent year-to-date growth.”
Meanwhile, shares of fellow IT consultant Infosys Ltd rose. INFY,
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The stock index rose again, toward a 13-month high, a day after breaking a string of disappointing earnings reports.
US listed Wipro shares, WIT,
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It rose 17% to $6.28, the highest close since May 17, 2022. The stock also posted its biggest single-day gain since rising 22.8% on October 28, 2008.
Delaporte said he was “starting to see early signs” of a return to growth in IT consulting, with the Capco business the company acquired in 2021 seeing order bookings grow in the double-digit percentage range.
Wipro stock is enjoying its biggest gain in 16 years, heading towards its highest close in nearly two years.
FactSet, Market Watch
Wipro early on Friday reported net income falling to INR 27.01 billion ($326 million), or INR 5.15 per share, from INR 30.65 billion, or INR 5.56 per share, in the same period last year. This beat the FactSet consensus EPS of INR 5.10.
Revenue fell 4.4% to INR 222.05 billion ($2.7 billion), beating the FactSet consensus of INR 221.50 billion.
The company has beaten earnings per share and revenue expectations in the past three quarters, and in six of the past seven quarters.
US-listed Infosys shares rose 4.1%, after jumping 4.0% the previous day, towards their highest close since December 5, 2022.
The stock suffered its largest single-day losses over the past three years on the days of its previous three earnings reports. It was down 6.5% on October 12, 2023, down 8.4% on July 20, and down 9.8% on April 13.
On Thursday, the company reported fiscal third-quarter earnings per share fell to 18 cents from 19 cents, but was above the FactSet consensus of 17 cents. That also snapped a three-quarter streak of fouls on the bottom line.
As with Wipro, Infosys said results were boosted by “strong” gains in large deals.
Revenue rose 0.1% to $4.66 billion, but fell short of expectations of $4.71 billion, according to FactSet.
Wipro stock is up 29.2% over the past three months and Infosys stock is up 16%, while the iShares MSCI India ETF INDA is up 12.4% and the S&P 500 SPX is up 10.5%.
