Infosys’ results were negatively affected by the modification of a big contract, and its American depositary receipts (ADRs) fell Thursday.
The India-based information technology services company’s fourth-quarter fiscal 2024 revenue came in short of forecasts.
Infosys also reduced its full-year sales growth guidance.
American depositary receipts (ADRs)
of Infosys (
INFY
) declined 2.6% Thursday after the information technology services provider missed sales estimates and lowered its
guidance
after renegotiation of a major contract hurt results.
The India-based company reported fourth-quarter fiscal 2024 revenue was up 0.2% year-over-year to $4.56 billion, less than anticipated and 2.2% lower than in the previous quarter. Earnings per share (EPS) of 23 cents exceeded expectations.
Operating margin
of 20.1% was down 40
basis points (bps)
sequentially.
Infosys noted that during the period it had a “rescoping and renegotiation of one of the large contracts in the financial services segment.” It said that created a one-time impact of approximately 100 bps in the fourth quarter. Infosys added that nearly 85% of the scope of the contract “continues as-is.”
The company now anticipates full-year revenue growth in the range of 1% to 3% in
constant currency
, down from its earlier outlook of a rise of 1.5% to 2%.
Infosys ADRs finished 2.6% lower Thursday. They’ve lost about 10% of their value so far this year.
