Genpact Limited ( reported better-than-expected second-quarter 2022 results. G Quick Quote G - Free Report)
The stock has lost 2.3% since the earnings release on Aug 4, as management’s revenue guidance for 2022 was weak. Revenues are now anticipated between $4.32 billion and $4.37 billion (prior view: $4.325 billion and $4.4 billion). The midpoint ($4.345 billion) of the same is below the current Zacks Consensus Estimate of $4.37 billion.
Adjusted EPS (excluding 32 cents from non-recurring items) of 70 cents outpaced the Zacks Consensus Estimate by 9.4% and climbed 6.1% year over year. Revenues amounted to $1.89 billion, which beat the consensus estimate by 2% and increased 10% year over year on a reported basis and 12% on a constant-currency (cc) basis.
Data-Tech-AI services revenues (representing 45% of total revenues) climbed 20% year over year on a reported basis and 22% at cc to $489 million.
Digital Operations services revenues of $601 million were up 3% year over year (5% at cc) and contributed 55% to total revenues.
Adjusted income from operations totaled $183 million, up 3% year over year. Adjusted operating income margin of 16.9% declined 100 basis points (bps) year over year.
Genpact exited the quarter with cash and cash equivalents of $460.4 million compared with $861.8 million recorded at the end of the previous quarter. Long-term debt totaled $1.3 billion, flat with the prior-quarter figure.
G generated $102.3 million cash from operating activities, while capex was $10.3 million. Genpact returned $4.21 million to its shareholders through dividends and $76.1 million through share repurchases in the quarter.
Genpact’s guided range for adjusted EPS is $2.68-$2.74 (prior view: $2.60-$2.76). The midpoint ($2.71) of the same is below the current Zacks Consensus Estimate of $2.72.
Management expects adjusted-income-from-operations margin at the upper end of the prior outlook of 16.0-16.5%.
G currently carries a Zacks Rank #2 (Buy). You can see
the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Recent Performances of Some Other Business Services Companies Equifax ( reported mixed second-quarter 2022 results, wherein earnings beat estimates but revenues missed the same. EFX Quick Quote EFX - Free Report)
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