Zacks: Analysts Expect Virtusa Co. (VRTU) to Announce $0.40 Earnings Per Share

Brokerages expect Virtusa Co. (NASDAQ:VRTU) to post earnings per share (EPS) of $0.40 for the current fiscal quarter, Zacks Investment Research reports. Four analysts have issued estimates for Virtusa’s earnings. The lowest EPS estimate is $0.39 and the highest is $0.41. Virtusa reported earnings per share of $0.50 during the same quarter last year, which indicates a negative year over year growth rate of 20%. The firm is scheduled to announce its next earnings results on Wednesday, August 14th.

On average, analysts expect that Virtusa will report full-year earnings of $2.68 per share for the current fiscal year, with EPS estimates ranging from $2.64 to $2.70. For the next fiscal year, analysts anticipate that the firm will post earnings of $3.28 per share, with EPS estimates ranging from $3.18 to $3.34. Zacks Investment Research’s EPS calculations are an average based on a survey of research analysts that follow Virtusa.

Virtusa (NASDAQ:VRTU) last released its earnings results on Wednesday, May 15th. The information technology services provider reported $0.35 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.41 by ($0.06). Virtusa had a return on equity of 12.68% and a net margin of 1.29%. The business had revenue of $327.60 million for the quarter, compared to analysts’ expectations of $330.91 million. During the same quarter in the prior year, the business posted $0.55 EPS. The business’s revenue for the quarter was up 16.5% compared to the same quarter last year.

VRTU has been the subject of a number of recent analyst reports. Zacks Investment Research raised Virtusa from a “sell” rating to a “hold” rating in a research report on Thursday, February 14th. Barrington Research reissued a “buy” rating and issued a $64.00 price objective on shares of Virtusa in a report on Tuesday, January 29th. Cantor Fitzgerald restated an “overweight” rating and issued a $56.00 price target (down previously from $62.00) on shares of Virtusa in a research note on Thursday, May 16th. BidaskClub lowered Virtusa from a “buy” rating to a “hold” rating in a research note on Friday, February 15th. Finally, Needham & Company LLC restated a “strong-buy” rating and issued a $60.00 price target on shares of Virtusa in a research report on Thursday, May 16th. Two equities research analysts have rated the stock with a hold rating, five have assigned a buy rating and one has given a strong buy rating to the stock. Virtusa currently has an average rating of “Buy” and an average target price of $56.83.

In related news, insider Raj Rajgopal sold 4,113 shares of the firm’s stock in a transaction dated Thursday, February 28th. The shares were sold at an average price of $50.51, for a total value of $207,747.63. Following the completion of the sale, the insider now owns 76,907 shares in the company, valued at $3,884,572.57. The sale was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, CFO Ranjan Kalia sold 2,500 shares of the firm’s stock in a transaction dated Wednesday, February 27th. The shares were sold at an average price of $50.70, for a total transaction of $126,750.00. Following the completion of the sale, the chief financial officer now owns 143,986 shares of the company’s stock, valued at approximately $7,300,090.20. The disclosure for this sale can be found here. Insiders have sold 126,288 shares of company stock valued at $6,662,811 in the last quarter. Insiders own 5.11% of the company’s stock.

Several hedge funds have recently bought and sold shares of VRTU. Bank of New York Mellon Corp increased its holdings in Virtusa by 0.6% during the 3rd quarter. Bank of New York Mellon Corp now owns 355,405 shares of the information technology services provider’s stock worth $19,089,000 after purchasing an additional 2,054 shares during the period. AQR Capital Management LLC boosted its position in shares of Virtusa by 40.3% in the 3rd quarter. AQR Capital Management LLC now owns 15,026 shares of the information technology services provider’s stock worth $807,000 after purchasing an additional 4,317 shares in the last quarter. Vanguard Group Inc. lifted its position in Virtusa by 2.4% during the 3rd quarter. Vanguard Group Inc. now owns 2,352,310 shares of the information technology services provider’s stock worth $126,343,000 after acquiring an additional 55,460 shares during the period. Gradient Investments LLC acquired a new stake in Virtusa during the 4th quarter worth about $699,000. Finally, Bank of Montreal Can lifted its position in Virtusa by 23.2% during the 4th quarter. Bank of Montreal Can now owns 42,403 shares of the information technology services provider’s stock worth $1,806,000 after acquiring an additional 7,983 shares during the period. Institutional investors own 88.28% of the company’s stock.

NASDAQ:VRTU opened at $42.70 on Friday. The company has a market capitalization of $1.30 billion, a PE ratio of 29.25, a P/E/G ratio of 1.08 and a beta of 1.05. Virtusa has a 1 year low of $37.80 and a 1 year high of $58.60. The company has a debt-to-equity ratio of 1.24, a current ratio of 2.72 and a quick ratio of 2.35.

Virtusa Company Profile

Virtusa Corporation provides digital engineering and information technology (IT) outsourcing services worldwide. The company offers business and IT consulting services, including advisory/target operating model, business process re-engineering/business management, transformational solution consulting, and business/technology alignment analysis; omni-channel digital strategy, experience design accelerated solution design, and employee engagement; and application portfolio rationalization, SDLC transformation, and BA competency transformation services.

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Earnings History and Estimates for Virtusa (NASDAQ:VRTU)

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