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Genpact's (G) Q4 Earnings Surpass Estimates, Improve Y/Y

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Genpact Limited (G - Free Report) reported better-than-expected fourth-quarter 2022 results.

Adjusted EPS of 70 cents outpaced the Zacks Consensus Estimate by 2.9% and increased 29.6% year over year. Revenues amounted to $1.1 billion, which beat the consensus estimate by 1.7% and increased 2.8% year over year on a reported basis and 6% on a constant-currency (CC) basis.

The earnings beat, however, failed to impress the market as there has not been any major price change since the earnings release. Genpact shares have gained 8.4% in the past year, outperforming 7.7% growth of the industry it belongs to.

Quarterly Details

Data-Tech-AI services revenues (representing 45% of total revenues) were up 2% year over year on a reported basis and 5% at cc to $495 million.

Digital Operations services revenues of $608 million were up 3% year over year (7% at cc) and contributed 55% to total revenues.  

Adjusted income from operations totaled $187 million, up 21% year over year. The adjusted operating income margin of 17% surged 260 basis points year over year.

Genpact exited the quarter with cash and cash equivalents of $646.8 million compared with $518.7 million recorded at the end of the previous quarter. Long-term debt totaled $1.2 billion compared to $1.3 billion reported in the prior quarter.

The company generated $230 million in cash from operating activities, while capex was $15.3 million. Genpact returned $22.9 million to its shareholders through dividends.

Genpact Limited Price, Consensus and EPS Surprise

 

Genpact Limited Price, Consensus and EPS Surprise

Genpact Limited price-consensus-eps-surprise-chart | Genpact Limited Quote

2023 Guidance

Revenues are anticipated between $4.64 billion and $4.71 billion, the mid-point ($4.68 billion) of which is above the Zacks Consensus Estimate of $4.65 billion.

Genpact’s guidance for adjusted EPS is $2.92-$2.99. The Zacks Consensus Estimate is pegged at $2.99.  

Adjusted income from operations margin is expected to be 16.8%.

Genpact currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Performances of Some Other Business Services Companies

Robert Half International Inc. (RHI - Free Report) reported mixed fourth-quarter 2022 results, wherein earnings beat the Zacks Consensus Estimate but revenues missed the same.

RHI’s quarterly earnings of $1.37 per share beat the Zacks Consensus Estimate by 1.5% but declined 9.3% year over year. Revenues of $1.73 billion missed the Zacks Consensus Estimate by 0.6% and decreased 2.4% year over year.

Automatic Data Processing, Inc. (ADP - Free Report)  reported better-than-expected second-quarter fiscal 2023 results.

ADP’s adjusted earnings per share of $1.96 beat the Zacks Consensus Estimate by 0.5% and grew 19% from the year-ago quarter. Total revenues of $4.4 billion beat the Zacks Consensus Estimate by 0.3% and improved 9.1% from the year-ago quarter.

Booz Allen Hamilton Holding Corp. (BAH - Free Report) reported impressive third-quarter fiscal 2023 results, wherein earnings and revenues beat the Zacks Consensus Estimate. Quarterly adjusted earnings per share of $1.07 beat the Zacks Consensus Estimate by 4.9% and increased 4.9% on a year-over-year basis.

BAH’s total revenues of $2.3 billion beat the Zacks Consensus Estimate by 4% and increased 12.1% on a year-over-year basis.

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