Virtusa stock stumbles as projections fall short
Matt Volpini
Kris Canekeratne, Chairman and CEO, Virtusa Corp., Westborough.
Business consulting and technology outsourcing company Virtusa of Westborough reported strong revenue growth, but saw stock prices drop Monday as projections for the upcoming quarter fell below market expectations.
Revenue for the company’s third quarter of fiscal 2016 of $150.6 million represented a 5 percent sequential and 22 percent year-over-year increase, the company reported Monday. However, income was down year-over-year for the third quarter at $0.38 per diluted share compared to $0.40 per diluted share a year prior.
Part of this drop in earnings per share, an estimated $0.02 per share, was attributed to the impact of a flood in Chennai, India in December that temporarily affected Virtusa’s regular business operations at its Chennai facility. The flood cost the company approximately $1.2 million, according to the company.
Projected revenue for the fourth quarter of 2016 of $172 to $175 million fell short of anticipated projection of $192.2 million. This was part of the reason the company’s stock fell by over 9 percent in early trading Monday.
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