TROY, Mich. (AP) — Syntel Inc. lowered its 2012 financial projections Monday, which sent shares of the outsourcing services company down sharply in trading.
The company said that one of its customers recently decided to reduce its spending for the rest of 2012 only. As a result, the company's revenue will be limited.
Syntel said it expects to earn $4.26 to $4.29 per share for the year on revenue between $720 million and $722 million. That compares with its prior forecast from October of earnings between $4.36 to $4.40 per share and revenue between $730 million to $735 million.
The forecast was below market expectations. Analysts polled by FactSet were expecting Syntel to earn $4.36 per share for the year on revenue of $729.1 million.
Syntel, based in Troy, Mich., provides information technology outsourcing services for companies.
Shares of the company fell $3.16, more than 5 percent, to $57.05. Its shares remain in the middle of their 52-week trading range of $44.29 to $65.19.