Cognizant Technology Slumps On Lowered Outlook (CTSH, DISH, YAHOO, VRTX)

Cognizant Technology Solutions Corp(NASDAQ:CTSH) shares slumped 16% to $58.43 as the company trimmed its full year adjusted earnings outlook , citing weak demand from financial services clients in North America. The company lowered its adjusted earnings outlook for 2012 to $3.62 per share on revenue of at least $7.34 billion — down from its previous forecast of $3.69 per share in adjusted earnings on revenue of $7.53 billion. Cognizant said it expects its banking and pharmaceutical sectors to remain sluggish for the rest of the year.

Cognizant recorded 11 percent growth from Europe for the first quarter, better than its earlier forecast. But the company is still not bullish on the region. In January, market research firm Gartner cut its forecast for worldwide IT spending growth this year to 3.7 percent from the 4.6 percent it estimated earlier. Net income for the first quarter rose to $243.6 million, or 79 cents per share, from $208.3 million, or 67 cents per share, a year ago.’

DISH Network Corp.(NASDAQ:DISH) fell 1.21% to $30.93. This morning, Standard & Poor's Ratings Services said today that it assigned its 'BB-' issue-level rating and '3' recovery rating to DISH DBS Corp.'s proposed senior unsecured notes due 2017 and 2022. The '3' recovery rating indicates our expectations for meaningful (50%-70%) recovery in the event of a payment default. DISH DBS Corp. is the main subsidiary of Englewood, Colo.-based satellite TV provider DISH Network Corp.

Yahoo! Inc.(NASDAQ:YHOO) is up 2% as Reuters reported that Yahoo! Inc. could be weeks away from selling 15% to 25% of Alibaba Group's stock back to the company, in a deal designed to eliminate complexities that had scuttled the parties' previous negotiations. The two companies have been in talks for a month, but cautioned that there is no guarantee a deal will be reached.

Vertex Pharmaceuticals Incorporated(NASDAQ:VRTX) shares soared 47% after the Company said interim results from an ongoing Phase 2 study showed the combined use of VX-809 and its cystic-fibrosis treatment Kalydeco improved lung function in adults who have two copies of the most common gene mutation.