Virtusa (NASDAQ:VRTU) Issues FY20 Earnings Guidance

Virtusa (NASDAQ:VRTU) updated its FY20 earnings guidance on Thursday. The company provided EPS guidance of $2.45-$2.65 for the period, compared to the Thomson Reuters consensus EPS estimate of $2.68. The company issued revenue guidance of $1.326-$1.354 billion, compared to the consensus revenue estimate of $1.37 billion.Virtusa also updated its FY 2020 guidance to $2.45-2.65 EPS.

NASDAQ:VRTU traded down $9.17 during trading hours on Friday, reaching $34.42. 707,962 shares of the company were exchanged, compared to its average volume of 128,254. The company has a current ratio of 2.71, a quick ratio of 2.71 and a debt-to-equity ratio of 0.90. The stock has a market cap of $1.41 billion, a price-to-earnings ratio of 23.58, a price-to-earnings-growth ratio of 1.06 and a beta of 1.16. Virtusa has a 52-week low of $34.22 and a 52-week high of $58.60. The company’s 50 day moving average is $44.02.

Virtusa (NASDAQ:VRTU) last posted its quarterly earnings results on Thursday, August 8th. The information technology services provider reported $0.41 earnings per share for the quarter, topping the Zacks’ consensus estimate of $0.40 by $0.01. The company had revenue of $319.00 million for the quarter, compared to the consensus estimate of $317.59 million. Virtusa had a net margin of 1.29% and a return on equity of 11.81%. Virtusa’s revenue was up 6.3% on a year-over-year basis. During the same quarter last year, the firm posted $0.50 earnings per share. On average, analysts forecast that Virtusa will post 2.01 EPS for the current fiscal year.

VRTU has been the topic of a number of recent analyst reports. Needham & Company LLC reaffirmed a strong-buy rating and set a $60.00 price target on shares of Virtusa in a research note on Thursday, May 16th. ValuEngine downgraded shares of Virtusa from a buy rating to a hold rating in a research note on Saturday. Cantor Fitzgerald reissued an overweight rating and issued a $56.00 target price (down previously from $62.00) on shares of Virtusa in a research note on Thursday, May 16th. Barrington Research reissued a buy rating and issued a $64.00 target price on shares of Virtusa in a research note on Friday, May 10th. Finally, Wedbush reissued an outperform rating and issued a $60.00 target price (down previously from $70.00) on shares of Virtusa in a research note on Thursday, May 16th. Two research analysts have rated the stock with a hold rating, five have assigned a buy rating and one has given a strong buy rating to the company’s stock. Virtusa currently has an average rating of Buy and a consensus price target of $56.83.

In related news, CEO Kris A. Canekeratne sold 7,500 shares of Virtusa stock in a transaction on Monday, July 1st. The shares were sold at an average price of $44.31, for a total transaction of $332,325.00. Following the sale, the chief executive officer now owns 723,926 shares of the company’s stock, valued at approximately $32,077,161.06. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director Joseph Doody purchased 5,000 shares of the company’s stock in a transaction that occurred on Friday, May 31st. The shares were purchased at an average cost of $42.50 per share, for a total transaction of $212,500.00. Following the purchase, the director now directly owns 14,684 shares in the company, valued at $624,070. The disclosure for this purchase can be found here. Company insiders own 4.73% of the company’s stock.

Virtusa Company Profile

Virtusa Corporation provides digital engineering and information technology (IT) outsourcing services worldwide. The company offers business and IT consulting services, including advisory/target operating model, business process re-engineering/business management, transformational solution consulting, and business/technology alignment analysis; omni-channel digital strategy, experience design accelerated solution design, and employee engagement; and application portfolio rationalization, SDLC transformation, and BA competency transformation services.

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Earnings History and Estimates for Virtusa (NASDAQ:VRTU)

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