Does Earnings Surprise History Hold Any Clue for Infosys (NYSE:INFY)

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Earnings results for Infosys (NYSE:INFY)

Infosys Limited is expected* to report earnings on 10/14/2020 before market open. The report will be for the fiscal Quarter ending Sep 2020. According to Zacks Investment Research, based on 6 analysts’ forecasts, the consensus EPS forecast for the quarter is $0.14. The reported EPS for the same quarter last year was $0.13.

Infosys last released its quarterly earnings results on July 15th, 2020. The technology company reported $0.13 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.12 by $0.01. The company had revenue of $3.12 billion for the quarter, compared to the consensus estimate of $2.96 billion. Infosys has generated $0.55 earnings per share over the last year and currently has a price-to-earnings ratio of 28.6. Infosys has confirmed that its next quarterly earnings report will be published on Wednesday, October 14th, 2020.

Analyst Opinion on Infosys (NYSE:INFY)

12 Wall Street analysts have issued ratings and price targets for Infosys in the last 12 months. Their average twelve-month price target is $10.92, predicting that the stock has a possible downside of 30.52%. The high price target for INFY is $14.00 and the low price target for INFY is $9.00. There are currently 4 hold ratings, 7 buy ratings and 1 strong buy rating for the stock, resulting in a consensus rating of “Buy.”

Infosys has received a consensus rating of Buy. The company’s average rating score is 2.75, and is based on 7 buy ratings, 4 hold ratings, and no sell ratings. According to analysts’ consensus price target of $10.92, Infosys has a forecasted downside of 30.5% from its current price of $15.72. Infosys has only been the subject of 3 research reports in the past 90 days.

Dividend Strength: Infosys (NYSE:INFY)

Infosys has a dividend yield of 1.35%, which is in the bottom 25% of all stocks that pay dividends. Infosys has only been increasing its dividend for 1 years. The dividend payout ratio of Infosys is 38.18%. This payout ratio is at a healthy, sustainable level, below 75%. Based on earnings estimates, Infosys will have a dividend payout ratio of 33.87% next year. This indicates that Infosys will be able to sustain or increase its dividend.

Insiders buying/selling: Infosys (NYSE:INFY)

In the past three months, Infosys insiders have not sold or bought any company stock. Only 22.42% of the stock of Infosys is held by insiders. Only 17.24% of the stock of Infosys is held by institutions.

Earnings and Valuation of Infosys (NYSE:INFY

Earnings for Infosys are expected to grow by 12.73% in the coming year, from $0.55 to $0.62 per share. The P/E ratio of Infosys is 28.58, which means that it is trading at a more expensive P/E ratio than the market average P/E ratio of about 19.81. The P/E ratio of Infosys is 28.58, which means that it is trading at a less expensive P/E ratio than the Computer and Technology sector average P/E ratio of about 66.32. Infosys has a PEG Ratio of 2.50. PEG Ratios above 1 indicate that a company could be overvalued. Infosys has a P/B Ratio of 7.67. P/B Ratios above 3 indicate that a company could be overvalued with respect to its assets and liabilities.

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