Why Syntel Shares Sank

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What: Shares of Syntel (NAS: SYNT) sank today by as much as 11% after the company revised  its full-year guidance.

So what: The company said that one of its customers is cutting back spending temporarily through the end of 2012, which is leading Syntel to reduce its full-year estimates. Revenue for 2012 is now expected in the range of $720 million to $722 million, which should translate into earnings per share of $4.26 to $4.29.


Now what: That's down from Syntel's prior  guidance of $730 million to $735 million, so the midpoint of guidance has been decreased by $11.5 million. The company has also previously been targeting $4.36 to $4.40 in earnings per share this year, putting it on track to top the analyst forecast of $4.36 in earnings per share on $729.1 million in sales. Today's revision means the company will fall short of investor expectations for 2012.

Interested in more info on Syntel? Add it to your watchlist by clicking here.

The article Why Syntel Shares Sank originally appeared on Fool.com.

Fool contributor Evan Niu, CFA, and The Motley Fool have no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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