Mark of recession – Cognizant Withdraw Guidance
In a major move, a company Cognizant which has never withdrawn it’s guidance, it is first the Cognizant is withdrawing it guidance of 2020. Is it a mark of recession.
Cognizant Technology Solutions is withdrawing its 2020 guidance (outlook) that was provided on February 5, given the ‘unprecedented’ nature of the coronavirus crisis, the uncertainty around its duration and its impact on the company’s ability to forecast performance.
The company said its first quarter revenue is expected to be $4.22-4.23 billion, up 2.7-2.9 per cent (3.4-3.6 per cent in constant currency) from the prior-year quarter, including a negative 50 basis point impact from the exit of certain content services.
Fall in demand
Entering the second quarter, Cognizant expects the pandemic to further reduce client demand as its societal and economic impact causes broader disruptions across industries.
However, the long-term fundamentals of the business remain strong, said the US-based software company with a strong offshore presence in India, announcing certain updates in response to the impact of the coronavirus on business operations.