Why Did Infosys Stock Pop on Thursday?
Infosys stock jumped 6.6% on Thursday following Accenture's strong Q4 earnings beat, which exceeded analyst expectations on both revenue ($18.7B vs $18B expected) and earnings ($3.29 vs $3.19 EPS expected). Investors are extrapolating Accenture's positive results to anticipate similar strong performance from Infosys when it reports earnings on October 23. However, the author notes Infosys faces a high bar for sales growth (10.7% expected) and a low bar for earnings growth (5% expected), requiring significantly faster earnings growth to be considered a buy.