Infosys Ltd. has cut it’s annual revenue growth guidance second time this year. Also it has warned lower spending from it’s clientele in euro zone due to ongoing debt crisis in Europe. This particular forecast was good enough to send the Infosys stock down by more than 8 percent today on Bombay Stock Exchange.
Most of the European clients are refraining from awarding new projects due to their own problems which are out of concerns over European debt crisis and macroeconomic headwinds developing in European and American economy. Infosys earns its majority of revenues from US and Europe.
Infosys has provided dollar guidance down to $7029 million – 7033 million against $7060 million - $7090 million in last quarter. Earnings Per Share (EPS) stands at Rs. 41.51 against Rs.33.36 QOQ. Full year EPS has been hiked to Rs.147.13.
Also, Infosys management has provided a forecast about future which is not encouraging for investors. As per them, problems in US and European debt crisis could affect company’s growth in near future.
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