Virtusa (NASDAQ:VRTU) Posts Earnings Results, Beats Estimates By $0.20 EPS

Virtusa (NASDAQ:VRTU) released its quarterly earnings data on Thursday. The information technology services provider reported $0.54 earnings per share for the quarter, topping analysts’ consensus estimates of $0.34 by $0.20, Fidelity Earnings reports. The firm had revenue of $328.50 million during the quarter, compared to analyst estimates of $327.07 million. Virtusa had a return on equity of 11.67% and a net margin of 2.23%. Virtusa updated its Q3 guidance to $0.73-$0.79 EPS and its FY20 guidance to $2.51-$2.65 EPS.

Shares of NASDAQ:VRTU traded up $2.93 during mid-day trading on Friday, reaching $42.71. The stock had a trading volume of 488,100 shares, compared to its average volume of 171,613. The company has a current ratio of 2.58, a quick ratio of 2.58 and a debt-to-equity ratio of 0.99. The company has a market cap of $1.20 billion, a P/E ratio of 29.25, a price-to-earnings-growth ratio of 1.14 and a beta of 1.19. Virtusa has a 1 year low of $31.99 and a 1 year high of $57.00. The business’s 50 day moving average price is $36.53 and its 200 day moving average price is $41.78.

In related news, CEO Kris A. Canekeratne sold 7,500 shares of the business’s stock in a transaction dated Wednesday, October 23rd. The stock was sold at an average price of $35.50, for a total value of $266,250.00. Following the sale, the chief executive officer now directly owns 706,748 shares in the company, valued at $25,089,554. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, insider Samir Dhir sold 4,000 shares of the business’s stock in a transaction dated Friday, November 1st. The stock was sold at an average price of $37.55, for a total value of $150,200.00. Following the completion of the sale, the insider now owns 148,139 shares in the company, valued at $5,562,619.45. The disclosure for this sale can be found here. Insiders sold 30,500 shares of company stock worth $1,108,640 over the last quarter. 4.73% of the stock is owned by company insiders.

A number of equities analysts have recently weighed in on VRTU shares. ValuEngine lowered Virtusa from a “buy” rating to a “hold” rating in a research note on Saturday, August 10th. JPMorgan Chase & Co. dropped their price objective on Virtusa from $49.00 to $48.00 and set an “overweight” rating for the company in a research note on Monday, October 7th. Zacks Investment Research reaffirmed a “hold” rating on shares of Virtusa in a research note on Saturday, October 12th. Needham & Company LLC lowered Virtusa from a “strong-buy” rating to a “buy” rating and dropped their price objective for the stock from $50.00 to $48.00 in a research note on Tuesday, September 10th. Finally, BidaskClub raised Virtusa from a “sell” rating to a “hold” rating in a research note on Tuesday. Three equities research analysts have rated the stock with a hold rating and six have issued a buy rating to the stock. The stock has an average rating of “Buy” and an average price target of $53.29.

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 for Virtusa (NASDAQ:VRTU)

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