Over the past 12 fiscal quarters, Infosys Limited (NYSE:INFY) has topped consensus earnings estimates in 3 quarters (25%), missed earnings in 1 quarters (8%), whereas at 8 occasion EPS met analyst expectations. Shares of Infosys Limited (INFY) have gained 48.7% since the company’s Jun-19 earnings report.INFY last reported earnings on January 11, 2019 when it released Dec-18 results that receded expectations. The company raked in $0.13 per share, -13.33% change on the same period last year. That was worse than consensus for $0.13. Revenue for the recent quarter stood at $2.99 billion, up 8% on last year and above the $2.94 billion predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $2.98 billion to $3.11 billion, which should be compared with $2.98 billion generated last year. EPS is seen in a range of $0.12 to $0.14, against the $0.13 reported a year ago.
INFY’s 50 day simple moving average (SMA 50) price is $9.52 and its 200-day simple moving average (SMA 200) price is $9.55. The company’s stock currently has a total float of 4.01B shares. Its weekly volatility is hovering around 2.38% and felt 2.2% volatility in price over a month. On the upside, the share price will test short term resistance at around $10.69. On a downside, the stock is likely to find some support, which begins at $10.13. The failure to get near-term support could push it to $9.84.
Wall Street’s most bullish Infosys Limited (NYSE:INFY) analysts are predicting the share price to blow past $12.98 per share during the next 12 months. The current median share price forecast by them is $10.87, suggesting that the stock could increase 4.42% in that time frame. The average price target of $10.73 calls for a nearly 3.07% increase in the stock price.
It had seen a new analyst call from Berenberg, which initiated the stock at Sell on April 06. Analysts at Goldman, shed their negative views on February 05 by lifting it fromNeutral to Buy. The stock lost favor of Susquehanna analysts who expressed their lack of confidence in it using a downgrade from Neutral to Negative on February 05. Morgan Stanley analysts came out with bullish views on January 16 when the call was made. They think the stock is now Overweight compared to to their prior call for Equal-Weight.
When looking at valuations, Infosys Limited (INFY) has a cheap P/E of 19.53x as compared to industry average of 22.12x. Moreover, it trades for 18.36 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 4.89x price/book and 3.9x price/sales. Compared to others, Infosys Limited is in a different league with regards to profitability, having net margins of 21.9%. To put some perspective around this, the industry’s average net margin is 10.01%. INFY’s ROE is 26.3%, which is also considerably better than the industry’s ROE of 15.96%. It’s also very liquid in the near term, with a current ratio of 3.3. The stock has a debt/capital of 0.
Infosys Limited (NYSE:INFY) recently claimed $41.89B as the price has approached $10.41. There came a 5.36% growth with the closing bell on Friday. The stock remained range bound between $10.12 and $10.6777. Trading activity significantly improved as the volume at ready counter increased to 40,470,099 shares versus 11,606,354 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 13,447,987 shares. The stock is now 26.33% above against its bear-market low of $8.24 on April 13, 2018. It has retreated -2.59% since it’s 52-week high of $10.68 reached in January. Now the market price is up 22.54% on the year and up 9.35% YTD.