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Genpact Limited (G - Free Report) reported impressive third-quarter 2022 results, wherein both earnings and revenues surpassed the respective Zacks Consensus Estimate.
However, better-than-expected results failed to impress the investors as the stock has shown no significant price change price change since the earnings release on Nov 9.
Adjusted EPS (excluding 24 cents from non-recurring items) of 75 cents outpaced the Zacks Consensus Estimate by 10.3% and climbed 13.6% year over year. Revenues of $1.11 billion beat the consensus estimate by 3% and increased 9.4% year over year on a reported basis and 12% on a constant-currency (cc) basis.
Quarterly Details
Data-Tech-AI services revenues (representing 46% of total revenues) climbed 19% year over year on a reported basis and 21% at cc to $510 million.
Digital Operations services revenues of $601 million were up 2% year over year (6% at cc) and contributed 54% to total revenues.
Adjusted income from operations totaled $189 million, up 12% year over year. Adjusted operating income margin of 17.1% surged 50 basis points (bps) year over year.
Genpact exited the quarter with cash and cash equivalents of $518.7 million compared with $460.4 million recorded at the end of the previous quarter. Long-term debt totaled $1.3 billion compared to $746.6 million reported in the prior quarter.
G generated $202.1 million cash from operating activities, while capex was $8.4 million. Genpact returned $22.8 million to its shareholders through dividends and $30 million through share repurchases in the quarter.
2022 Guidance
Revenues are now anticipated between $4.32 billion and $4.355 billion (prior view: $4.32 billion and $4.37 billion). The midpoint ($4.3375 billion) of the same is below the current Zacks Consensus Estimate of $4.35 billion.
Genpact’s guided range for adjusted EPS is $2.69-$2.74 (prior view: $2.68-$2.74). The midpoint ($2.715) of the same is below the current Zacks Consensus Estimate of $2.73.
Management still expects the adjusted-income-from-operations margin at the upper end of the prior outlook of 16.0-16.5%.
Omnicom Group Inc. (OMC - Free Report) reported impressive third-quarter 2022 results, wherein both earnings and revenues surpassed the respective Zacks Consensus Estimate.
Earnings of $1.77 per share beat the consensus mark by 7.9% and increased 7.3% year over year, driven by a solid margin performance. Total revenues of $3.4 billion surpassed the consensus estimate by 3% and increased slightly year over year.
Equifax Inc. (EFX - Free Report) reported stellar third-quarter 2022 results, wherein both earnings and revenues surpassed the respective Zacks Consensus Estimate.
Adjusted earnings (excluding 39 cents from non-recurring items) of $1.73 per share beat the Zacks Consensus Estimate by 5.5% but decreased 6.5% on a year-over-year basis. However, revenues of $1.24 billion beat the consensus estimate by 2.3% and improved 1.8% year over year on a reported basis and 4% on a local-currency basis.
The Interpublic Group of Companies, Inc. (IPG - Free Report) reported better-than-expected third-quarter 2022 results.
Adjusted earnings (excluding a penny from non-recurring items) of 63 cents per share beat the Zacks Consensus Estimate by 6.8%. The bottom line has been flat over the past year. Net revenues of $2.3 billion beat the consensus estimate by 0.3% but declined 9.7% on a year-over-year basis. Total revenues of $2.64 billion increased 3.8% year over year.
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Genpact's (G) Q3 Earnings Surpass Estimates, Increase Y/Y
Genpact Limited (G - Free Report) reported impressive third-quarter 2022 results, wherein both earnings and revenues surpassed the respective Zacks Consensus Estimate.
However, better-than-expected results failed to impress the investors as the stock has shown no significant price change price change since the earnings release on Nov 9.
Adjusted EPS (excluding 24 cents from non-recurring items) of 75 cents outpaced the Zacks Consensus Estimate by 10.3% and climbed 13.6% year over year. Revenues of $1.11 billion beat the consensus estimate by 3% and increased 9.4% year over year on a reported basis and 12% on a constant-currency (cc) basis.
Quarterly Details
Data-Tech-AI services revenues (representing 46% of total revenues) climbed 19% year over year on a reported basis and 21% at cc to $510 million.
Genpact Limited Price, Consensus and EPS Surprise
Genpact Limited price-consensus-eps-surprise-chart | Genpact Limited Quote
Digital Operations services revenues of $601 million were up 2% year over year (6% at cc) and contributed 54% to total revenues.
Adjusted income from operations totaled $189 million, up 12% year over year. Adjusted operating income margin of 17.1% surged 50 basis points (bps) year over year.
Genpact exited the quarter with cash and cash equivalents of $518.7 million compared with $460.4 million recorded at the end of the previous quarter. Long-term debt totaled $1.3 billion compared to $746.6 million reported in the prior quarter.
G generated $202.1 million cash from operating activities, while capex was $8.4 million. Genpact returned $22.8 million to its shareholders through dividends and $30 million through share repurchases in the quarter.
2022 Guidance
Revenues are now anticipated between $4.32 billion and $4.355 billion (prior view: $4.32 billion and $4.37 billion). The midpoint ($4.3375 billion) of the same is below the current Zacks Consensus Estimate of $4.35 billion.
Genpact’s guided range for adjusted EPS is $2.69-$2.74 (prior view: $2.68-$2.74). The midpoint ($2.715) of the same is below the current Zacks Consensus Estimate of $2.73.
Management still expects the adjusted-income-from-operations margin at the upper end of the prior outlook of 16.0-16.5%.
G currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Releases
Omnicom Group Inc. (OMC - Free Report) reported impressive third-quarter 2022 results, wherein both earnings and revenues surpassed the respective Zacks Consensus Estimate.
Earnings of $1.77 per share beat the consensus mark by 7.9% and increased 7.3% year over year, driven by a solid margin performance. Total revenues of $3.4 billion surpassed the consensus estimate by 3% and increased slightly year over year.
Equifax Inc. (EFX - Free Report) reported stellar third-quarter 2022 results, wherein both earnings and revenues surpassed the respective Zacks Consensus Estimate.
Adjusted earnings (excluding 39 cents from non-recurring items) of $1.73 per share beat the Zacks Consensus Estimate by 5.5% but decreased 6.5% on a year-over-year basis. However, revenues of $1.24 billion beat the consensus estimate by 2.3% and improved 1.8% year over year on a reported basis and 4% on a local-currency basis.
The Interpublic Group of Companies, Inc. (IPG - Free Report) reported better-than-expected third-quarter 2022 results.
Adjusted earnings (excluding a penny from non-recurring items) of 63 cents per share beat the Zacks Consensus Estimate by 6.8%. The bottom line has been flat over the past year. Net revenues of $2.3 billion beat the consensus estimate by 0.3% but declined 9.7% on a year-over-year basis. Total revenues of $2.64 billion increased 3.8% year over year.