Free Research Report as Syntel's Revenues Jumped 10.1%; EPS Advanced 11%

Stock Monitor: Computer Task Group Post Earnings Reporting

LONDON, UK / ACCESSWIRE / July 27, 2018 / If you want access to our free earnings report on Syntel, Inc. (NASDAQ: SYNT), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=SYNT. The Company reported its second quarter fiscal 2018 operating and financial results on July 26, 2018. The leading provider of integrated information technology and knowledge process services outperformed top- and bottom-line expectations. Register today and get access to over 1,000 Free Research Reports by joining our site below:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Syntel most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

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Earnings Highlights and Summary

For the second quarter of the fiscal year 2018, Syntel's revenues increased 10.1% to $249.7 million from $226.8 million in Q2 2017. The Company's revenue numbers topped analysts' estimates by $16.57 million.

During Q2 2018, Syntel's Banking and Financial Services accounted for 43.3% of its total revenues; Retail, Logistics, and Telecom at 18.6%; Healthcare and Life Sciences at 18.1%; Insurance at 15.2%; and Manufacturing at 4.8%.

For Q2 2018, Syntel's gross profit was $84.6 million compared to $81.8 million in Q2 2017. The Company's gross margin was 33.9% in the reported quarter compared to 36% in the prior year's same quarter. Syntel's selling, general, and administrative expenses (SG&A) were 11.1% of revenues in Q2 2018 compared to 12.6% in Q2 2017.

Syntel's income from operations was $57.0 million, or 22.8% of revenues, in Q2 2018 compared to $50.0 million, or 23.4%, in Q2 2017.

Syntel reported a net income of $41.1 million, or $0.49 per diluted share, in Q2 2018 compared to $36.7 million, or $0.44 per diluted share, in Q2 2017. The Company's earnings surpassed Wall Street's estimates of $0.44 per share.

Cash Matters

During Q2 2018, Syntel spent $1.6 million in CAPEX and finished the quarter with cash and short-term investments of $127.8 million. Syntel ended the reported quarter with 23,476 employees globally versus 21,850 at the end of the year ago comparable quarter.

Syntel Enters Definitive Agreement to be Acquired by Atos S.E.

On July 20, 2018, Syntel entered into a definitive merger agreement with Atos S.E. under which Atos will acquire Syntel in an all-cash transaction valued at approximately $3.57 billion, or $41 per share, including Syntel's net debt. The merger agreement has been approved unanimously by the Boards of Directors of both Companies. However, it is still subject to regulatory approvals, approval by Syntel's shareholders, and other customary closing conditions. The transaction is expected to close by the end of the fiscal year 2018.

2018 Guidance

In light of the announced definitive merger agreement with Atos S.E., Syntel did not provided updates to its financial guidance.

Stock Performance Snapshot

July 26, 2018 - At Thursday's closing bell, Syntel's stock marginally climbed 0.07%, ending the trading session at $40.71.

Volume traded for the day: 2.41 million shares, which was above the 3-month average volume of 754.47 thousand shares.

Stock performance in the last month - up 26.63%; previous three-month period - up 39.66%; past twelve-month period - up 105.40%; and year-to-date - up 77.08%

After yesterday's close, Syntel's market cap was at $3.37 billion.

Price to Earnings (P/E) ratio was at 18.67.

The stock is part of the Technology sector, categorized under the Information Technology Services industry.

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