Segmental Struggles at Wipro: IT Services Revenue Decline Weighs on Stock
Portfolio Pulse from Anusuya Lahiri
Wipro Ltd (NYSE:WIT) shares fell 11.8% after reporting a 3.8% Y/Y decline in gross revenue for Q1, missing analyst estimates. IT Services revenue dropped 5.5% Y/Y, while net income rose 4.6% Y/Y. The company provided a mixed Q2 outlook.
July 19, 2024 | 3:46 pm
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Wipro Ltd (NYSE:WIT) reported a 3.8% Y/Y decline in Q1 gross revenue, missing analyst estimates. IT Services revenue fell 5.5% Y/Y, while net income increased by 4.6% Y/Y. The company provided a mixed Q2 outlook, leading to an 11.8% drop in share price.
The decline in revenue and IT Services segment performance, coupled with missing analyst estimates, has negatively impacted investor sentiment, leading to a significant drop in share price. The mixed Q2 outlook adds to the uncertainty.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100