Genpact Limited (G - Free Report) reported mixed third-quarter 2023 results, wherein earnings beat the Zacks Consensus Estimate, but revenues missed.
The stock has declined 7.9% since the earnings release on Nov 8, as the 2023 revenue guidance was weak. The company currently expects revenues to be around $4.45 billion compared with the previous expectation of $4.59-$4.64 billion. The current guidance is lower than the Zacks Consensus Estimate of $4.51 billion.
Quarterly EPS of 67 cents surpassed the consensus estimate by 3.1% and stayed flat on a year-over-year basis. Revenues of $1.1 billion missed the consensus mark by 2.3% but increased 2.2% year over year.
Other Quarterly Details
Data-Tech-AI services revenues (representing 44% of total revenues) were down 2% year over year on a reported as well as constant currency basis to $500 million. Yet, the metric missed our estimate of $548.5 million.
Digital Operations services revenues of $636 million (56%) inched up 6% year over year on a reported basis as well as at cc. This surpassed our projection of $624.8 million.
Adjusted income from operations totaled $195 million, up 3% year over year. Adjusted operating income margin of 17.2% increased 20 basis points year over year.
Genpact exited the quarter with cash and cash equivalents of $541 million compared with $491.3 million recorded at the end of the previous quarter. Long-term debt was $1.2 billion, flat with the prior quarter.
The company generated $76.7 million in cash from operating activities, while capex was $11.3 million. Genpact returned $18.7 million to shareholders through dividends.
2023 Guidance
Adjusted EPS is expected to be around $2.89 (prior view: $2.91-$2.94). The guidance is below the Zacks Consensus Estimate of $2.91.
Adjusted income from operations margin is expected to be 17%, up from 16.8% expected previously.
Genpact currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Interpublic Group of Companies, Inc.’s (IPG - Free Report) third-quarter 2023 earnings and revenues missed the Zacks Consensus Estimate.
IPG’s adjusted earnings were 70 cents per share, which lagged the consensus estimate by 6.7% but increased 11.1% on a year-over-year basis. Net revenues of $2.31 billion missed the consensus estimate by 3.3%. In the year-ago quarter, IPG’s net revenues were $2.3 billion. Total revenues of $2.68 billion increased 1.5% year over year.
Equifax Inc. (EFX - Free Report) reported lower-than-expected third-quarter 2023 results. Adjusted earnings (excluding 45 cents from non-recurring items) were $1.76 per share, missing the Zacks Consensus Estimate by 1.1% but increasing 1.7% from the year-ago figure.
EFX’s total revenues of $1.32 billion missed the consensus estimate by 0.7% and increased 6% from the year-ago figure on a reported basis and 6.5% on a local-currency basis.
Fiserv, Inc. (FI - Free Report) reported impressive third-quarter 2023 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate. Adjusted earnings per share of $1.96 exceeded the consensus mark by 1% and increased 20% year over year. Adjusted revenues of $4.62 billion surpassed the consensus estimate by 0.53% and increased 8.2% year over year.
FI’s organic revenue growth was 12% in the quarter, driven by 20% and 6% growth in the Acceptance and Payments segments, respectively.
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Genpact Limited (G - Free Report) reported mixed third-quarter 2023 results, wherein earnings beat the Zacks Consensus Estimate, but revenues missed.
The stock has declined 7.9% since the earnings release on Nov 8, as the 2023 revenue guidance was weak. The company currently expects revenues to be around $4.45 billion compared with the previous expectation of $4.59-$4.64 billion. The current guidance is lower than the Zacks Consensus Estimate of $4.51 billion.
Quarterly EPS of 67 cents surpassed the consensus estimate by 3.1% and stayed flat on a year-over-year basis. Revenues of $1.1 billion missed the consensus mark by 2.3% but increased 2.2% year over year.
Other Quarterly Details
Data-Tech-AI services revenues (representing 44% of total revenues) were down 2% year over year on a reported as well as constant currency basis to $500 million. Yet, the metric missed our estimate of $548.5 million.
Digital Operations services revenues of $636 million (56%) inched up 6% year over year on a reported basis as well as at cc. This surpassed our projection of $624.8 million.
Adjusted income from operations totaled $195 million, up 3% year over year. Adjusted operating income margin of 17.2% increased 20 basis points year over year.
Genpact exited the quarter with cash and cash equivalents of $541 million compared with $491.3 million recorded at the end of the previous quarter. Long-term debt was $1.2 billion, flat with the prior quarter.
The company generated $76.7 million in cash from operating activities, while capex was $11.3 million. Genpact returned $18.7 million to shareholders through dividends.
2023 Guidance
Adjusted EPS is expected to be around $2.89 (prior view: $2.91-$2.94). The guidance is below the Zacks Consensus Estimate of $2.91.
Adjusted income from operations margin is expected to be 17%, up from 16.8% expected previously.
Genpact currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Interpublic Group of Companies, Inc.’s (IPG - Free Report) third-quarter 2023 earnings and revenues missed the Zacks Consensus Estimate.
IPG’s adjusted earnings were 70 cents per share, which lagged the consensus estimate by 6.7% but increased 11.1% on a year-over-year basis. Net revenues of $2.31 billion missed the consensus estimate by 3.3%. In the year-ago quarter, IPG’s net revenues were $2.3 billion. Total revenues of $2.68 billion increased 1.5% year over year.
Equifax Inc. (EFX - Free Report) reported lower-than-expected third-quarter 2023 results. Adjusted earnings (excluding 45 cents from non-recurring items) were $1.76 per share, missing the Zacks Consensus Estimate by 1.1% but increasing 1.7% from the year-ago figure.
EFX’s total revenues of $1.32 billion missed the consensus estimate by 0.7% and increased 6% from the year-ago figure on a reported basis and 6.5% on a local-currency basis.
Fiserv, Inc. (FI - Free Report) reported impressive third-quarter 2023 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate. Adjusted earnings per share of $1.96 exceeded the consensus mark by 1% and increased 20% year over year. Adjusted revenues of $4.62 billion surpassed the consensus estimate by 0.53% and increased 8.2% year over year.
FI’s organic revenue growth was 12% in the quarter, driven by 20% and 6% growth in the Acceptance and Payments segments, respectively.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
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