Raising Rating to GRADUALLY ACCUMULATE; 1Q18 Beats Big
- 1Q18 (Mar) EPS was 55 cents (vs 46 cents last year), up 20% YoY and 14 cents above our estimate due to better-than-anticipated sales and margins;
- Our 2018 estimate is now $2.02 (from $1.88 and Company raised guidance of $1.76-to-$1.96) off 4% from 2017;
- For 2019, our estimate is now $2.15 (from $2.00), up 6% from our 2018 projection;
- The shares are trading at 12.8x our 12-month forward EPS estimate of $2.03, or 116% of their 11% projected growth rate, and are now rated GRADUALLY ACCUMULATE (from Hold), given an improving customer spending environment, strong outperformance (vs consensus expectations) for three consecutive quarters, and Company guidance that appears to be conservative.
Syntel is a provider of digital transformation, information technology and knowledge process outsourcing services. The company's segments include: Banking and Financial Services, which serves financial institutions throughout the world; Healthcare and Life Sciences, which serves healthcare payers, providers and pharmaceutical and medical device providers, among others; Insurance, which serves the needs of property and casualty insurers, insurance brokers, personal, commercial, life and retirement insurance service providers; Manufacturing, which provides technology services and business consulting; and Retail, Logistics and Telecom, which provides elimination and digital modernization solutions.
Great Lakes Review is located in Cleveland, Ohio, was founded in 1981 and became a division of Wellington Shields & Co. LLC in 2011. Great Lakes Review is a research boutique focused on the fundamentally-oriented investor seeking companies that dominate their respective specialty niche regardless of industry. The objective is to make money for the long-term by gradually accumulating a diversified portfolio from a universe of no more than 30 companies. Although short-term-oriented accounts will be alerted to trading opportunities, aggressive sell recommendations are triggered only by a deterioration in long-term fundamentals, not by short-term blips or investor fancy. Coverage of those names that lose their earnings momentum or earnings predictability may be dropped and replaced with more vital candidates.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.