Technology Stocks Maintaining Healthy Operating Margin – (INFY, CHKP, BIDU, LLTC, VRSN, ALTR)
The companies require a healthy operating margin to maintain its ability to pay its fixed costs, such as interest on debt. Based on this concept following technology stocks has maintained healthy operating margins in last 12 months to keep its strength in the market.
Infosys Ltd ADR (NASDAQ:INFY) which maintains 28.56%operating margin, declined sharply on its first trade after releasing fourth quarter earnings of $0.81 per ADS, higher as compared to $0.70 per ADS last year. The consensus forecast was of $0.81 earnings per share. The India-based provider of software services predicts to post first quarter profit of $0.73 per ADS and said it is expected to remain between $3.12 and $3.17 per ADS for the full year. However the consensus expectations are for EPS within the range of $0.76 to $3.25.
More technology stocks that are maintaining healthy operating margin include Check Point Software Technologies Ltd. (NASDAQ:CHKP) and Baidu.com, Inc. (ADR) (NASDAQ:BIDU) both has above 50% for the last twelve month operating margin while Linear Technology Corporation (NASDAQ:LLTC), Verisign, Inc. (NASDAQ:VRSN) and Altera Corporation (NASDAQ:ALTR) holds healthy operating margin between 40% and 50%.
Infosys Ltd ADR (NASDAQ:INFY) last session volume of 9.86 million shares was surprisingly higher than its average volume of 1.64 million shares. The stock after opening at $48.75 hit high price of $49.53 and then closed at $49.15 by scoring -13.42%.
WTW generated revenue of 6.83 billion in the following twelve months and earned $1.66 billion. The Company showed a positive +24.25% in the net profit margin and as well as in its operating margin which remained +28.56%. Company’s annual sales growth for the past five year was 22.93%.
The WTW past twelve months price to sales ratio was 4.11 and price to cash ratio remained 7.66. As far as the returns are concern, the WTW as +28.40% return on investment while its return on asset stayed at +24.71%.
The stock showed weekly downbeat performance of -14.36% which was maintained for the month at -16.28%. Likewise the negative performance for the quarter was recorded as -5.21% and for the year was -31.81% while the YTD performance remained at -4.34%.