Infosys Stock Falls After Q4 Earnings - What's Going On?
Portfolio Pulse from Anusuya Lahiri
Infosys Ltd (NYSE: INFY) reported a slight Q4 revenue growth of 0.2% year-on-year to $4.56 billion, surpassing consensus estimates. EPS was $0.23, beating estimates and up from the previous year. The company announced a significant deal win of $4.5 billion but saw a decline in operating margin and a reduction in employee count. Infosys expects FY25 revenue growth of 1.0% - 3.0%. Despite positive performance, INFY shares fell by 5.60% in premarket trading. Exposure to Infosys can also be gained through VanEck Digital India ETF (DGIN) and Global X India Active ETF (NDIA).
April 18, 2024 | 1:23 pm
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NEUTRAL IMPACT
VanEck Digital India ETF (DGIN) offers exposure to Infosys, which reported a slight Q4 revenue growth and expects FY25 revenue growth of 1.0% - 3.0%.
As an ETF that includes Infosys, DGIN's performance may be influenced by Infosys' earnings report and future outlook, though the impact is diluted across the ETF's diversified portfolio.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
NEUTRAL IMPACT
Global X India Active ETF (NDIA) provides investment exposure to Infosys, which has reported Q4 earnings growth and a positive FY25 revenue outlook.
NDIA, as an ETF with exposure to Infosys, may see indirect effects from Infosys' financial performance and projections, but the impact is mitigated by the ETF's broader investment strategy.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
Infosys reported a modest revenue growth and an EPS beat in Q4, alongside a significant deal win. Despite positive results, shares fell by 5.60% in premarket trading.
Despite beating revenue and EPS estimates, the premarket reaction to Infosys' earnings report was negative, likely due to investor concerns over the modest revenue growth and operating margin decline.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100