Based on lower revenue in the key Applications Outsourcing & BPO segments and a higher tax-rate – masked by currency translation gains and scaled-back hiring – key analysts are adjusting our estimates as follows: 2008 pro-forma EPS remains at $1.70 on revenue of $422 million (25% YoY growth but down from our prior $425 million projection); and 2009 pro-forma EPS stays unchanged at $1.95 on revenue of $507 million (20% YoY growth and down from $512 million previously).
Its observed Syntel might miss its well publicized 2010 internal revenue goal of 1 billion by nearly $400 million.
2Q08 results fell short of revenue and EPS estimates; the BPO engine suffered a dramatic deceleration (6.2% QoQ vs. 17.2% LTM); IT headcount dropped for the second straight quarter; 2008 EPS guidance of $1.74-1.82 includes $0.12 of non-recurring gains; excluding well- penetrated clients American Express and State Street Bank (35% of revenue), Syntel posted only 11% compound growth in 2005-07
Source:
Seeking Alpha
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