Infosys (INFY 15.62, +0.06) is little changed in pre-market after reporting better than expected earnings. Shares of Infosys in Mumbai gapped up at the start of Friday's session, but retreated into the close to end lower by 0.4%.
The technology consultant reported above-consensus first quarter earnings of INR15.23 per share on revenue of INR170.78 billion, which increased 1.8% year-over-year, coming in just ahead of market expectations.
Operating margin checked in at 24.1%, unchanged year-over-year.
The company's utilization, excluding trainees, increased by 200 basis points to 84.0%. Furthermore, this was the sixth consecutive quarter of rising revenue per employee.
The company noted that services in software-led offerings and in leveraged Design Thinking have seen strong traction in key accounts. These offering were launched during the last two years.
Infosys has taken continued steps to expand its global footprint as part of its strategy to establish global competency centers. A new development center focused on engineering services was opened in Croatia in April.
Aiming to reduce reliance on H-1B and L-1 visas, the company committed to hiring 10,000 American workers in the next two years while establishing four technology and innovation hubs in the United States. The first U.S.-based hub is set to open in Indiana in August 2017. A second hub is slated to be opened in North Carolina.
The company expanded its presence in China by opening a new campus in Shanghai, aimed at cultivating local talent while providing new tech labs and an incubator for startups.
Looking ahead, the company reaffirmed its guidance for the fiscal year, expecting revenue between INR729.00 billion and INR743 billion, which is ahead of current market expectations. Operating margin guidance was unchanged, expecting margins between 23.0% and 25.0%.