Virtusa Corporation (VRTU) Updates Q2 Earnings Guidance
Virtusa Corporation (NASDAQ:VRTU) updated its second quarter earnings guidance on Tuesday. The company provided earnings per share guidance of $0.32-0.38 for the period, compared to the Thomson Reuters consensus earnings per share estimate of $0.37. The company issued revenue guidance of $236.5-241.5 million, compared to the consensus revenue estimate of $229.62 million.Virtusa Corporation also updated its FY18 guidance to $1.45-1.63 EPS.
A number of research firms have recently issued reports on VRTU. Barrington Research set a $35.00 price objective on shares of Virtusa Corporation and gave the company a buy rating in a research note on Thursday, May 25th. SunTrust Banks, Inc. set a $32.00 price target on shares of Virtusa Corporation and gave the stock a buy rating in a research report on Friday, May 19th. Maxim Group reissued a hold rating on shares of Virtusa Corporation in a research report on Tuesday, May 16th. BidaskClub raised shares of Virtusa Corporation from a hold rating to a buy rating in a research report on Sunday, July 16th. Finally, ValuEngine raised shares of Virtusa Corporation from a sell rating to a hold rating in a research report on Tuesday, June 27th. Three investment analysts have rated the stock with a hold rating, seven have assigned a buy rating and one has issued a strong buy rating to the company’s stock. The stock currently has a consensus rating of Buy and an average target price of $34.38.
Shares of Virtusa Corporation (NASDAQ:VRTU) opened at 31.88 on Tuesday. The company has a market capitalization of $960.19 million, a PE ratio of 81.74 and a beta of 1.71. The company’s 50 day moving average is $31.05 and its 200-day moving average is $29.66. Virtusa Corporation has a 52 week low of $18.03 and a 52 week high of $34.92.
Virtusa Corporation (NASDAQ:VRTU) last announced its earnings results on Tuesday, August 8th. The information technology services provider reported $0.25 EPS for the quarter, missing the consensus estimate of $0.27 by $0.02. The business had revenue of $227.30 million for the quarter, compared to the consensus estimate of $224.46 million. Virtusa Corporation had a return on equity of 3.50% and a net margin of 1.38%. Virtusa Corporation’s revenue for the quarter was up 10.6% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.18 EPS. On average, analysts expect that Virtusa Corporation will post $1.54 EPS for the current fiscal year.
Virtusa Corporation declared that its board has initiated a stock repurchase plan on Wednesday, May 3rd that permits the company to repurchase $30.00 million in outstanding shares. This repurchase authorization permits the information technology services provider to reacquire up to 3.3% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company’s leadership believes its shares are undervalued.
In other Virtusa Corporation news, CEO Kris A. Canekeratne sold 12,000 shares of the stock in a transaction dated Wednesday, July 26th. The stock was sold at an average price of $33.63, for a total value of $403,560.00. Following the transaction, the chief executive officer now owns 587,920 shares of the company’s stock, valued at $19,771,749.60. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Also, EVP Thomas R. Holler sold 29,873 shares of the stock in a transaction dated Friday, May 19th. The shares were sold at an average price of $28.00, for a total value of $836,444.00. Following the completion of the transaction, the executive vice president now directly owns 45,716 shares in the company, valued at approximately $1,280,048. The disclosure for this sale can be found here. In the last quarter, insiders sold 166,115 shares of company stock worth $4,818,066. 5.96% of the stock is owned by company insiders.
About Virtusa Corporation
Virtusa Corporation (Virtusa) is an information technology services company. The Company’s services include information technology (IT) and business consulting, digital enablement services, user experience (UX) design, development of IT applications, maintenance and support services, systems integration, infrastructure and managed services.
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