Virtusa (NASDAQ:VRTU) Issues FY20 Earnings Guidance

Virtusa (NASDAQ:VRTU) issued an update on its FY20 earnings guidance on Thursday morning. The company provided EPS guidance of $2.51-$2.65 for the period, compared to the Thomson Reuters consensus EPS estimate of $2.53. The company issued revenue guidance of $1.33-$1.35 billion, compared to the consensus revenue estimate of $1.34 billion.Virtusa also updated its Q3 guidance to $0.73-$0.79 EPS.

A number of brokerages have weighed in on VRTU. ValuEngine lowered shares of Virtusa from a buy rating to a hold rating in a research report on Saturday, August 10th. BidaskClub upgraded shares of Virtusa from a sell rating to a hold rating in a research report on Tuesday. Needham & Company LLC lowered shares of Virtusa from a strong-buy rating to a buy rating and cut their target price for the stock from $50.00 to $48.00 in a research report on Tuesday, September 10th. Barrington Research reiterated a buy rating and set a $60.00 target price on shares of Virtusa in a research report on Tuesday, September 17th. Finally, JPMorgan Chase & Co. cut their target price on shares of Virtusa from $49.00 to $48.00 and set an overweight rating for the company in a research report on Monday, October 7th. Three equities research analysts have rated the stock with a hold rating and six have assigned a buy rating to the company’s stock. The company presently has a consensus rating of Buy and an average target price of $53.29.

NASDAQ:VRTU traded up $2.93 on Friday, reaching $42.71. 488,100 shares of the company’s stock were exchanged, compared to its average volume of 171,613. The company has a debt-to-equity ratio of 0.99, a current ratio of 2.58 and a quick ratio of 2.58. The firm has a market cap of $1.20 billion, a price-to-earnings ratio of 29.25, a P/E/G ratio of 1.14 and a beta of 1.19. Virtusa has a 52 week low of $31.99 and a 52 week high of $57.00. The stock has a fifty day simple moving average of $36.53 and a 200-day simple moving average of $41.78.

Virtusa (NASDAQ:VRTU) last issued its earnings results on Thursday, November 7th. The information technology services provider reported $0.54 earnings per share for the quarter, topping analysts’ consensus estimates of $0.34 by $0.20. The firm had revenue of $328.50 million during the quarter, compared to analyst estimates of $327.07 million. Virtusa had a net margin of 2.23% and a return on equity of 11.67%. As a group, sell-side analysts predict that Virtusa will post 1.93 EPS for the current year.

In other news, insider Samir Dhir sold 4,000 shares of the firm’s stock in a transaction that occurred on Friday, August 30th. The shares were sold at an average price of $35.91, for a total value of $143,640.00. Following the completion of the transaction, the insider now directly owns 157,780 shares in the company, valued at $5,665,879.80. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Kris A. Canekeratne sold 7,500 shares of the firm’s stock in a transaction that occurred on Wednesday, October 23rd. The shares were sold at an average price of $35.50, for a total transaction of $266,250.00. Following the completion of the transaction, the chief executive officer now owns 706,748 shares of the company’s stock, valued at $25,089,554. The disclosure for this sale can be found here. Insiders sold 30,500 shares of company stock valued at $1,108,640 over the last 90 days. 4.73% of the stock is owned by company insiders.

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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