Albeit declining financial numbers, Syntel Inc (NASDAQ:SYNT) shares soared 13% in the last twelve months. SYNT shares are currently trading around $25 a share. Syntel stock has the 52-week trading range of $15 – $26.33.

Its financial numbers declined in fiscal 2017 compared to the previous year; the revenue and earnings topped analysts’ consensus estimates – which are providing the support to SYNT shares.

Syntel stock grew 17% in today’s trade after its revenue and earnings have beaten analysts’ consensus estimates by $26 million and $0.23 per share.

Financial Numbers Are Declining From Earlier Periods

The company has been struggling to expand its revenues; blamed mainly on increasing competition and lower demand.

Syntel generated revenue of $923.8M in fiscal 2017, lesser from $966.6M in the prior-year. Its earnings of $1.99 per share also came shorter from earnings of $2.53 per share in the previous year.

Furthermore, the company expects its revenue and earnings to fall in 2018, compared to the past year.

It expects revenue in the range of $905 million – which could be higher from the consensus estimates of $880 million. However, the revenues are likely to decline from $923 million in fiscal 2017.

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Syntel anticipates earnings of $1.92 per share for fiscal 2018. The projected earnings could beat analysts’ consensuses estimate for $1.80 per share; the earnings are likely to fall from previous year amount of $1.99 per share.

“In 2018, we will continue to invest in client engagement and in developing innovative digital and automation-powered services to help our customers transform their businesses and adapt to a dynamic competitive environment,” said Khanna. “We still have some work to do, but I am confident that our customer-centric approach will help Syntel make steady progress as we diversify and grow with our customers.”

Analysts Looks Bearish on Syntel Stock

Recently, JPMorgan has downgraded the Syntel stock price target to ‘Underweight’ from ‘Neutral’. The firm expects earnings growth potential to remain limited in the near-term. JP Morgan has also raised questions about the company’s financial flexibility – which is dampening its efforts to invest in the business growth opportunities.

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