Wipro’s latest quarter was not all bad, but some weak spots led to profit-taking Wednesday.
U.S.-traded shares *Wipro* (WIT <http://quotes.barrons.com/WIT>) fell 4.5% Wednesday to $11.71. Janney thinks the stock’s fair value is near $11. Wipro shares sank despite a rise in India’s market <http://blogs.barrons.com/emergingmarketsdaily/2014/10/22/wipro-stock-sinks-despite-india-market-rise/>, which rose 0.5% in the latest trading day, and is up more than 25% year to date. Wipro’s ability to return to industry growth rates is the key to long-term health, writes Janney. The Indian information technology services company, one of India’s largest, reported IT services growth of 1.8% quarter over quarter, and 8.6% year over year, but IT services results were better at some competitors: *Accenture* (ACN <http://quotes.barrons.com/ACN>) (+9.7% y/y) *International Business Machines* (services) (IBM <http://quotes.barrons.com/IBM>) (+1.0% y/y) *TCS* (+17.7% y/y) *Infosys* (INFY <http://quotes.barrons.com/INFY>) (+6.5% y/y) *iGate* (IGTE <http://quotes.barrons.com/IGTE>) (+10.0% y/y) *Syntel* (SYNT <http://quotes.barrons.com/SYNT>) (+8.8% y/y) *Joseph D. Foresi* and *Jeffrey S. Rossetti* at Janney write that top line results were slightly below expectations, earnings were in line with their expectations but: “We maintain our NEUTRAL on Wipro … We continue to look for an inflection point in growth rates given the recent deal wins and advantageous positioning in the infrastructure vertical with potential growth currently being offset by pockets of weakness … Other positives: Infrastructure (27% of revenue) +22.6% y/y, Americas (51% of revenue) +11.3% y/y, and Healthcare (11% of revenue) +20.1% y/y performed well on an annual basis offsetting weakness in ADM (16% of revenue) -11.5% y/y (attributed to Telecom) and consulting (2% of revenue) -10.7%. There was weakness across the top customer’s attributed to the Energy & Resources industry. … We lowered our FY15 revenue estimate to $7.25 billion from $7.31 billion on the miss in the quarter and lower than expected guidance. Our fair value is $11 (lowered from $12) based on 18x our FY15 EPS estimate.” -- -- NIFTYVIEWS.COM NOW A FREE OPEN SOURCE WEBSITE. http://www.niftyviews.com/ Disclaimer :- "The opinions expressed by the members on this board are based on their individual experience and perceptions and to share information with other members with the best of intentions to help fellow members in investment decisions as equity investment is a risky venture.The administrator of www.Niftyviews.com just provide a platform for the authors to express their opinion and take no guarantee for the genuineness of the same."ANY member of this forum doesnt prepare or publish any research report; or ii. provide research report; or iii. make 'buy/sell/hold' recommendation; or iv. give price target; --- You received this message because you are subscribed to the Google Groups "Niftyviews.com" group. To unsubscribe from this group and stop receiving emails from it, send an email to [email protected]. For more options, visit https://groups.google.com/d/optout.
