Cognizant(CTSH) ZACKS·2025-01-29 16:06Core Viewpoint - The market anticipates a year-over-year decline in Cognizant's earnings despite higher revenues, with a focus on how actual results compare to estimates [1][2]. Earnings Expectations - Cognizant is expected to report quarterly earnings of 5.07 billion, indicating a 6.5% increase from the previous year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 1.17% over the last 30 days, indicating a bearish sentiment among analysts [4]. - The Most Accurate Estimate for Cognizant is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -0.09% [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive or negative reading indicates the likelihood of actual earnings deviating from consensus estimates, with positive readings being more predictive of earnings beats [6][7]. - Stocks with a positive Earnings ESP and a Zacks Rank of 1, 2, or 3 have historically shown a nearly 70% chance of delivering a positive surprise [8]. Historical Performance - Cognizant has beaten consensus EPS estimates in the last four quarters, with a notable surprise of +9.65% in the last reported quarter [12][13]. Conclusion - Cognizant does not currently appear to be a strong candidate for an earnings beat, and investors should consider other factors when evaluating the stock ahead of its earnings release [16].