Wipro shares dip as Q4 guidance falls short of expectations

NEW YORK - Wipro Limited (NYSE: NYSE:WIT ) reported in-line earnings for its third quarter but saw its shares fall 1.5% as the IT services company's fourth-quarter revenue guidance came in below analyst estimates.

The India-based technology services provider posted adjusted earnings per share of $0.07 for the quarter ended September 30, matching the consensus forecast. Revenue rose 1.5% quarter-over-quarter to $2.66 billion, slightly ahead of expectations of $2.65 billion. However, revenue declined 1% compared to the same period last year.

Wipro's IT services segment, which accounts for the bulk of its business, saw revenue increase 1.3% sequentially to $2.66 billion. The company reported large deal bookings of $1.49 billion, its highest in 10 quarters.

Looking ahead, Wipro projected fourth-quarter revenue between $2.61 billion and $2.66 billion, below the $2.68 billion analysts were expecting. The midpoint of the guidance range implies a sequential decline of 1% in constant currency terms.

"Based on strong execution in Q2, we met our expectations for revenue growth, bookings, and margins," said CEO Srini Pallia. "We continued to expand our top accounts, large deal bookings surpassed $1 Bn once again, and Capco maintained its momentum for another consecutive quarter."

Chief Financial Officer Aparna Iyer highlighted the company's margin expansion and strong cash flow generation, noting that Wipro produced nearly $1 billion in operating cash flow in the first half of the fiscal year.

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Source: Investing.com