Equity Profile

WIT

Wipro Limited

Information TechnologyIT Consulting & Other Services$19.4B

Jul16Thu

Pre-Earnings Brief

UpcomingQ1-2019Pre-Market9:00 AM EDT

Company Snapshot

Wipro Limited is an information technology consulting firm that provides IT services and solutions to businesses globally. With a focus on digital transformation, cloud computing, and artificial intelligence, Wipro plays a significant role in helping companies adapt to the rapidly changing tech landscape.

Key Metrics to Watch

Revenue Growth

Investors will be keen to see how Wipro's revenue has changed, especially in the context of ongoing digital transformation trends.

Expected growth of 10% YoY.

Earnings Per Share (EPS)

EPS is a critical measure of profitability, and a strong EPS can indicate effective cost management and operational efficiency.

Expected EPS of $0.10.

1 more metrics, Wall Street expectations, options signals, track record, and call prep available with Pro.

WIT Q1-2019 Earnings Preview

Context

Company Snapshot

Earnings Scorecard·Last 8Q

EPS Beat Streak

EPS Beat Rate

50%

Avg EPS Surprise

+1310.34%

Avg Stock Reaction

-2.56%

Last Quarter Recap

In the last quarter, Wipro reported an impressive EPS of $4.00, significantly beating estimates. However, the stock saw a decline of 5.24% the following day, indicating that market reactions can be unpredictable despite strong earnings.

Management Promises & Guidance

Focus on enhancing digital offerings.
Commitment to improving operational efficiencies.
Plans to expand into new markets.

Expectations

Wall Street Expectations

Overall, expectations for Wipro's upcoming earnings are mixed, with some analysts optimistic about revenue growth while others remain cautious due to market volatility.

Bull Case

If Wipro can demonstrate strong revenue growth and maintain high client retention, it could signal robust demand for its services, leading to a positive market reaction.

Bear Case

Conversely, if the company reports disappointing revenue or EPS figures, it could raise concerns about its competitive position and lead to further stock declines.

Key Metrics to Watch

Revenue Growth

Expected growth of 10% YoY.

Investors will be keen to see how Wipro's revenue has changed, especially in the context of ongoing digital transformation trends.

Earnings Per Share (EPS)

Expected EPS of $0.10.

EPS is a critical measure of profitability, and a strong EPS can indicate effective cost management and operational efficiency.

Client Retention Rate

Expected retention rate of 90%.

High client retention is essential for sustained revenue growth, particularly in the competitive IT services market.

Expectations

Two Questions That Matter

The print will turn on these two things.

What will be the reported revenue growth rate for this quarter?

Revenue growth is a key indicator of Wipro's ability to capture market demand, and any significant deviation from expectations could impact investor confidence.

How has the client retention rate changed compared to previous quarters?

Client retention is crucial for long-term revenue stability, and any decline could signal challenges in maintaining customer relationships.

Edge

What the Street Is Missing

Why consensus could be wrong

The Street may underestimate Wipro's potential for strong revenue growth due to its strategic investments in digital services, which could yield higher-than-expected client demand.

Supporting Evidence

Options are pricing a 36.4% move, indicating expectations of significant volatility that may not align with historical performance.

The company's recent strong EPS surprises suggest a potential for continued outperformance despite market skepticism.

Key Risk

If revenue growth exceeds 10%, it could challenge the current cautious outlook and lead to a reevaluation of Wipro's growth prospects.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

This quarter's performance will be closely watched as it reflects Wipro's ability to navigate a competitive landscape and adapt to changing client needs.

Bull Confirmed If

Revenue growth of 10% YoY or better with EPS exceeding $0.10.

Bear Confirmed If

Revenue growth below 5% YoY or EPS falling short of $0.10.

Pre-Earnings Positioning

Options Market

Implied Move

±36.40%

Historical Avg

±2.6%

Pricing rich

The options market is pricing in a significant move, suggesting that traders expect volatility around the earnings announcement.

Options are pricing ±36.4% while WIT has averaged ±2.6% over the last 8 prints — setup is pricing rich.

Detail

ATM IV

1.2%

30d HV

56.9%

Calls (113K)P/C Ratio: 21.28Puts (66K)

Preparation

Post-Print Playbook

Likely market behavior by outcome — not investment advice.

Beat & Raise

If Wipro beats expectations, history suggests a potential stock increase of around 3.94%, confirming strong demand for its services.

In-Line / Cautious

If results are in line with expectations, the stock may see muted movement as investors await further guidance from management.

Miss

A miss on earnings could lead to a decline of approximately 1.17%, raising concerns about the company's market position.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Any updates on new client acquisitions and their expected impact on revenue.
2Details on the performance of digital transformation services.
3Management's outlook on market conditions and competitive pressures.
4Insights into cost management strategies and their effect on margins.
5Any commentary on future growth initiatives and market expansion plans.

See the full picture

AI-powered briefs, options data, and 20 quarters of history — everything you need before earnings.

No charge today · Auto-bills $8/mo after 7 days · Cancel anytime

More Earnings This Week

5 Reports

Fastenal Company

Company Snapshot

Key Metrics to Watch

Revenue Growth

Investors will be keen to see how Wipro's revenue has changed, especially in the context of ongoing digital transformation trends.

Expected growth of 10% YoY.

Earnings Per Share (EPS)

EPS is a critical measure of profitability, and a strong EPS can indicate effective cost management and operational efficiency.

Expected EPS of $0.10.

1 more metrics, Wall Street expectations, options signals, track record, and call prep available with Pro.

WIT Q1-2019 Earnings Preview

Context

Company Snapshot

Earnings Scorecard·Last 8Q

EPS Beat Streak

EPS Beat Rate

50%

Avg EPS Surprise

+1310.34%

Avg Stock Reaction

-2.56%

Last Quarter Recap

Management Promises & Guidance

Focus on enhancing digital offerings.
Commitment to improving operational efficiencies.
Plans to expand into new markets.

Expectations

Wall Street Expectations

Overall, expectations for Wipro's upcoming earnings are mixed, with some analysts optimistic about revenue growth while others remain cautious due to market volatility.

Bull Case

If Wipro can demonstrate strong revenue growth and maintain high client retention, it could signal robust demand for its services, leading to a positive market reaction.

Bear Case

Conversely, if the company reports disappointing revenue or EPS figures, it could raise concerns about its competitive position and lead to further stock declines.

Key Metrics to Watch

Revenue Growth

Expected growth of 10% YoY.

Investors will be keen to see how Wipro's revenue has changed, especially in the context of ongoing digital transformation trends.

Earnings Per Share (EPS)

Expected EPS of $0.10.

EPS is a critical measure of profitability, and a strong EPS can indicate effective cost management and operational efficiency.

Client Retention Rate

Expected retention rate of 90%.

High client retention is essential for sustained revenue growth, particularly in the competitive IT services market.

Expectations

Two Questions That Matter

The print will turn on these two things.

What will be the reported revenue growth rate for this quarter?

Revenue growth is a key indicator of Wipro's ability to capture market demand, and any significant deviation from expectations could impact investor confidence.

How has the client retention rate changed compared to previous quarters?

Client retention is crucial for long-term revenue stability, and any decline could signal challenges in maintaining customer relationships.

Edge

What the Street Is Missing

Why consensus could be wrong

The Street may underestimate Wipro's potential for strong revenue growth due to its strategic investments in digital services, which could yield higher-than-expected client demand.

Supporting Evidence

Options are pricing a 36.4% move, indicating expectations of significant volatility that may not align with historical performance.

The company's recent strong EPS surprises suggest a potential for continued outperformance despite market skepticism.

Key Risk

If revenue growth exceeds 10%, it could challenge the current cautious outlook and lead to a reevaluation of Wipro's growth prospects.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

This quarter's performance will be closely watched as it reflects Wipro's ability to navigate a competitive landscape and adapt to changing client needs.

Bull Confirmed If

Revenue growth of 10% YoY or better with EPS exceeding $0.10.

Bear Confirmed If

Revenue growth below 5% YoY or EPS falling short of $0.10.

Pre-Earnings Positioning

Options Market

Implied Move

±36.40%

Historical Avg

±2.6%

Pricing rich

The options market is pricing in a significant move, suggesting that traders expect volatility around the earnings announcement.

Options are pricing ±36.4% while WIT has averaged ±2.6% over the last 8 prints — setup is pricing rich.

Detail

ATM IV

1.2%

30d HV

56.9%

Calls (113K)P/C Ratio: 21.28Puts (66K)

Preparation

Post-Print Playbook

Likely market behavior by outcome — not investment advice.

Beat & Raise

If Wipro beats expectations, history suggests a potential stock increase of around 3.94%, confirming strong demand for its services.

In-Line / Cautious

If results are in line with expectations, the stock may see muted movement as investors await further guidance from management.

Miss

A miss on earnings could lead to a decline of approximately 1.17%, raising concerns about the company's market position.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Any updates on new client acquisitions and their expected impact on revenue.
2Details on the performance of digital transformation services.
3Management's outlook on market conditions and competitive pressures.
4Insights into cost management strategies and their effect on margins.
5Any commentary on future growth initiatives and market expansion plans.