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Genpact (G) Shares Gain 7.6% Since Q1 Earnings Beat Estimates
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Genpact Limited (G - Free Report) reported impressive first-quarter 2024 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate.
The company’s shares have gained 7.6% since the earnings release on May 9 in response to the better-than-expected results and the raised guidance for 2024.
For 2024, the company expects revenues of $4.59-$4.63 billion compared with $4.57-$4.61 billion stated previously. The mid-point ($4.61 billion) of the raised guidance is higher than the Zacks Consensus Estimate of $4.59 billion.
Adjusted EPS is expected between $3.01 and $3.04 compared with the $3 to $3.03 anticipated in the preceding quarter. The mid-point ($3.025) of the revised guidance is slightly higher than the consensus estimate of $3.01.
Quarterly EPS of 73 cents surpassed the consensus estimate by 5.8% and grew 7.4% year over year. Revenues of $1.13 billion beat the consensus mark by 2.1% and increased 3.9% from the year-ago quarter.
Genpact’s shares have gained 12.8% in the past month, outperforming the 1.9% rise of the industry it belongs to and 4.7% growth of the Zacks S&P 500 Composite.
Data-Tech-AI services revenues (representing 46% of the total revenues) increased 3% year over year on both reported and constant-currency basis to $524 million. The metric surpassed our estimate of $489.9 million. Growth in this segment’s revenues is propelled by aggressive go-to-market engagement across data engineering, analytics and AI (specifically gen AI) that drove a significant rise in client conversations.
Digital Operations services revenues of $607 million (54% of the total revenues) increased 5% from the year-ago quarter actuals on a reported basis and 6% at cc. This figure missed our estimate of $621 million. The increase in deals related to the preceding year’s large booking wins primarily provided an impetus to this segment’s revenues.
Adjusted income from operations totaled $182 million and grew 2% on a year-over-year basis. The adjusted operating margin of 16.4% increased 30 basis points year over year.
Genpact exited the first quarter with cash and cash equivalents of $478.39 million compared with $583.67 million at the end of the preceding quarter. Long-term debt (less current portion) was $818.33 million compared with $824.72 million at the end of first-quarter 2023.
Cash from operating activities utilized amounted to $25.56 million, while capital expenditure was $24 million. Genpact returned $27.49 million in dividends to shareholders.
Q2 & 2024 Guidance
For second-quarter 2024, the company expects revenues between $1.143 billion and $1.148 billion. The current Zacks Consensus Estimate for revenues is pegged at $1.15 billion which is higher than the guided range. The gross margin and adjusted income from the operating margin are anticipated to be 34.8% and 16.5%, respectively.
For 2024, the gross margin is anticipated to be 34.8%. Adjusted income from the operations margin is estimated to be 16.5%.
CLH’s earnings of $1.3 per share beat the Zacks Consensus Estimate by 11.2% but declined 5.2% from the year-ago quarter. Total revenues of $1.4 billion surpassed the consensus estimate by 2.8% and increased 5.3% on a year-over-year basis.
VRSK’s adjusted earnings (excluding 11 cents from non-recurring items) were $1.6 per share, beating the Zacks Consensus Estimate by 7.2% and increasing 26.4% from the year-ago quarter. Total revenues of $704 million surpassed the consensus estimate marginally and increased 8% year over year on a reported basis and 6.9% on an organic constant-currency basis.
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Genpact (G) Shares Gain 7.6% Since Q1 Earnings Beat Estimates
Genpact Limited (G - Free Report) reported impressive first-quarter 2024 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate.
The company’s shares have gained 7.6% since the earnings release on May 9 in response to the better-than-expected results and the raised guidance for 2024.
For 2024, the company expects revenues of $4.59-$4.63 billion compared with $4.57-$4.61 billion stated previously. The mid-point ($4.61 billion) of the raised guidance is higher than the Zacks Consensus Estimate of $4.59 billion.
Adjusted EPS is expected between $3.01 and $3.04 compared with the $3 to $3.03 anticipated in the preceding quarter. The mid-point ($3.025) of the revised guidance is slightly higher than the consensus estimate of $3.01.
Quarterly EPS of 73 cents surpassed the consensus estimate by 5.8% and grew 7.4% year over year. Revenues of $1.13 billion beat the consensus mark by 2.1% and increased 3.9% from the year-ago quarter.
Genpact’s shares have gained 12.8% in the past month, outperforming the 1.9% rise of the industry it belongs to and 4.7% growth of the Zacks S&P 500 Composite.
Genpact Limited Price and EPS Surprise
Genpact Limited price-eps-surprise | Genpact Limited Quote
Other Quarterly Details
Data-Tech-AI services revenues (representing 46% of the total revenues) increased 3% year over year on both reported and constant-currency basis to $524 million. The metric surpassed our estimate of $489.9 million. Growth in this segment’s revenues is propelled by aggressive go-to-market engagement across data engineering, analytics and AI (specifically gen AI) that drove a significant rise in client conversations.
Digital Operations services revenues of $607 million (54% of the total revenues) increased 5% from the year-ago quarter actuals on a reported basis and 6% at cc. This figure missed our estimate of $621 million. The increase in deals related to the preceding year’s large booking wins primarily provided an impetus to this segment’s revenues.
Adjusted income from operations totaled $182 million and grew 2% on a year-over-year basis. The adjusted operating margin of 16.4% increased 30 basis points year over year.
Genpact exited the first quarter with cash and cash equivalents of $478.39 million compared with $583.67 million at the end of the preceding quarter. Long-term debt (less current portion) was $818.33 million compared with $824.72 million at the end of first-quarter 2023.
Cash from operating activities utilized amounted to $25.56 million, while capital expenditure was $24 million. Genpact returned $27.49 million in dividends to shareholders.
Q2 & 2024 Guidance
For second-quarter 2024, the company expects revenues between $1.143 billion and $1.148 billion. The current Zacks Consensus Estimate for revenues is pegged at $1.15 billion which is higher than the guided range. The gross margin and adjusted income from the operating margin are anticipated to be 34.8% and 16.5%, respectively.
For 2024, the gross margin is anticipated to be 34.8%. Adjusted income from the operations margin is estimated to be 16.5%.
Genpact currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Earnings Snapshots
Clean Harbors, Inc. (CLH - Free Report) reported impressive first-quarter 2024 results.
CLH’s earnings of $1.3 per share beat the Zacks Consensus Estimate by 11.2% but declined 5.2% from the year-ago quarter. Total revenues of $1.4 billion surpassed the consensus estimate by 2.8% and increased 5.3% on a year-over-year basis.
Verisk Analytics Inc. (VRSK - Free Report) reported impressive first-quarter 2024 results.
VRSK’s adjusted earnings (excluding 11 cents from non-recurring items) were $1.6 per share, beating the Zacks Consensus Estimate by 7.2% and increasing 26.4% from the year-ago quarter. Total revenues of $704 million surpassed the consensus estimate marginally and increased 8% year over year on a reported basis and 6.9% on an organic constant-currency basis.