Wipro Limited (WIT) shares tumbled 5.32% in pre-market trading on Wednesday, following the company's disappointing revenue forecast for the first quarter of the fiscal year. The IT services giant's gloomy outlook overshadowed its in-line earnings report for the quarter ended March 31.
According to the company's latest earnings summary, Wipro reported adjusted earnings of 4 cents per share for the quarter ended March 31, meeting analysts' expectations. This figure represents an improvement from the 3 cents per share reported in the same quarter last year. However, revenue fell 1.5% to $2.63 billion, slightly above the analysts' estimate of $2.62 billion.
Despite the company's ability to meet earnings expectations, investors appear to be focusing on Wipro's pessimistic revenue forecast for the upcoming quarter. The market's negative reaction suggests that shareholders are concerned about the company's growth prospects in the face of challenging market conditions. This outlook comes at a time when Wipro's shares have already fallen by 7.8% this quarter and lost 20.3% year-to-date, indicating ongoing investor skepticism about the company's performance.
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