Sapient reports flat 2nd-quarter profit but revenue jumps and results top expectations

Sapient posts flat 2Q profit, higher revenue

SAN FRANCISCO — Sapient Corp., which provides technology consulting services, reported a flat second-quarter profit as higher costs offset a jump in revenue, but forecast third-quarter revenue above analyst estimates.

Late Thursday, Boston-based Sapient said it earned $7.6 million, or 6 cents per share, even with the prior-year period. Excluding one-time items, profit totaled 9 cents per share.

Revenue rose 37 percent to $210.7 million. Service revenue climbed 36 percent to $200.4 million, while reimbursable expenses rose nearly 71 percent to $10.4 million. However, operating expenses also rose 36 percent to $197.8 million, mainly due to higher project personnel costs and administrative expenses.

The results topped the estimates of analysts polled by Thomson Reuters, who had expected a profit of 7 cents per share on revenue of $195.1 million.

Sapient predicted third-quarter service revenue of $208 million or more, topping analysts’ current forecast of $200.5 million.

Sapient shares fell 75 cents, or 6.7 percent, to $10.44 in afternoon trading as the broader market declined on the government’s weak jobs report.