Infosys Q3 Earnings Slide, Tightens FY24 Guidance; To Acquire InSemi

(RTTNews) - Indian IT major Infosys Ltd. (INFY) Thursday reported lower earnings for the third quarter. However, earnings were in line with Analysts' estimates. Revenues edged up.

Further, the company narrowed its revenue guidance for fiscal 2024.

Quarterly earnings decreased to $733 million or $0.18 per share from $800 million or $0.19 per share, last year.

On average, eight analysts polled by Thomson Reuters had expected earnings of $0.18 per share for the quarter. Analysts' estimates typically exclude special items.

Revenue increased to $4.663 billion from $4.659 billion in the previous year. The Street view was $4.64 billion.

Looking forward to the full year, the company now expects revenue growth in the range of 1.5 percent to 2 percent in constant currency. The previous guidance was in the range of 1 percent to 2.5 percent in constant currency.

Analysts' estimate $18.59 billion in revenues.

Additionally, the company has announced that it will acquire a semiconductor design and services provider, InSemi.

The financial details of the transaction are not yet known.

With the acquisition, the company hopes to strengthen its engineering R&D capabilities. It also expects to accelerate its Chip-to-Cloud strategy. The acquisition is set to close in the fourth quarter of fiscal 2024.

In pre-market activity, Infosys shares are trading at $18.41, up 1.71% on the New York Stock Exchange.