Wipro (NYSE:WIT) has been hit with a double downgrade at Citi after the IT agency delivered weaker-than-expected Q1 earnings.
The Indian multinational company generated earnings per share of $0.06 on income of $2.7B (+9.8% Y/Y) – each falling brief of Wall Road estimates. Order bookings grew 32% Y/Y in complete contract worth phrases, pushed by massive transformational offers.
In downgrading the inventory from purchase to promote, Citi analysts wrote “Wipro’s 1Q highlights sector challenges – provide, rising journey prices & restricted pricing energy; powerful macro clouds medium-term visibility. Whereas we anticipated these challenges, the quantum is increased; additionally, we anticipated Wipro to handle prices higher, given the observe file over the previous few years – disappointing 1Q will result in EPS cuts & questions round skill to handle development & profitability collectively.”
The financial institution additionally lowered the agency’s FY23E/24E EPS estimates by 10-11% and goal a number of to 17x (20x) given weaker execution.
Wipro (WIT) shares have tanked over 3% right now and 48% YTD
Looking for Alpha’s Quant system charges the inventory as maintain and flags it at excessive threat of reducing its dividend