Virtusa (NASDAQ:VRTU) Updates Q2 Earnings Guidance

Virtusa (NASDAQ:VRTU) issued an update on its second quarter earnings guidance on Thursday morning. The company provided earnings per share guidance of $0.49-$0.55 for the period, compared to the Thomson Reuters consensus earnings per share estimate of $0.67. The company issued revenue guidance of $323-$331 million, compared to the consensus revenue estimate of $336.48 million.Virtusa also updated its FY 2020 guidance to $2.45-2.65 EPS.

NASDAQ:VRTU opened at $34.42 on Friday. Virtusa has a one year low of $34.22 and a one year high of $58.60. The company has a debt-to-equity ratio of 0.90, a quick ratio of 2.71 and a current ratio of 2.71. The firm has a market capitalization of $1.41 billion, a PE ratio of 30.81, a PEG ratio of 1.06 and a beta of 1.16. The firm has a 50 day moving average of $44.02.

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

VRTU has been the subject of several recent analyst reports. ValuEngine cut Virtusa from a buy rating to a hold rating in a research note on Saturday. TheStreet cut Virtusa from a b- rating to a c+ rating in a research note on Wednesday, May 29th. Cantor Fitzgerald reissued an overweight rating and set a $56.00 target price (down previously from $62.00) on shares of Virtusa in a research note on Thursday, May 16th. Wedbush reissued an outperform rating and set a $60.00 target price (down previously from $70.00) on shares of Virtusa in a research note on Thursday, May 16th. Finally, Needham & Company LLC reissued a strong-buy rating and set a $60.00 target price on shares of Virtusa in a research note on Thursday, May 16th. Two investment analysts have rated the stock with a hold rating, five have assigned a buy rating and one has assigned a strong buy rating to the company’s stock. Virtusa has a consensus rating of Buy and a consensus price target of $56.83.

In other news, Director Joseph Doody acquired 5,000 shares of the company’s stock in a transaction dated Friday, May 31st. The stock was acquired at an average cost of $42.50 per share, with a total value of $212,500.00. Following the completion of the purchase, the director now owns 14,684 shares of the company’s stock, valued at approximately $624,070. The acquisition was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, 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 value of $332,325.00. Following the completion of the sale, the chief executive officer now directly owns 723,926 shares of the company’s stock, valued at $32,077,161.06. The disclosure for this sale can be found here. Insiders own 4.73% of the company’s stock.

About Virtusa

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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