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Adjusted EPS (excluding 11 cents from non-recurring items) of 68 cents outpaced the Zacks Consensus Estimate by 4.6% and increased 13.3% year over year. Revenues of $1.09 billion missed the consensus estimate by 0.6%. However the top line increased 2% year over year on a reported basis and 4% on a constant currency (cc) basis.
The earnings beat, however, failed to impress the market as the stock declined 7.5% since the date of earnings release on May 10.
Data-Tech-AI services revenues (representing 45% of total revenues) were up 4% year over year on a reported basis and 6% at cc to $485 million.
Digital Operations services revenues of $604 million were up 0.4% year over year (3% at cc) and contributed 55% to total revenues.
Adjusted income from operations totaled $179 million, up 12% year over year. The adjusted operating income margin of 16.4% surged 140 basis points year over year.
Genpact exited the quarter with cash and cash equivalents of $552.3 million compared with $646.8 million recorded at the end of the previous quarter. Long-term debt totaled $1.24 billion compared with $1.25 billion reported in the prior quarter.
The company generated $34.1 billion in cash from operating activities, while capex was $12.6 million. Genpact returned $25.3 million to its shareholders through dividends. G repurchased approximately 631,000 of its common shares worth $30 million at an average price per share of $47.57.
Reposts 2023 Guidance
Revenues are anticipated to be between $4.64 billion and $4.71 billion, the mid-point ($4.68 billion) of which is above the Zacks Consensus Estimate of $4.66 billion.
Adjusted EPS is projected in the range of $2.92-$2.99. The mid-point ($2.955) of the guided range is below the Zacks Consensus Estimate of $2.98.
Adjusted income from operations margin is expected to be 16.8%.
OMC’s earnings of $1.56 per share beat the Zacks Consensus Estimate by 13% and our estimate by 11.4%. EPS increased 12.2% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 2.3% and our estimate by 1.4%. The top line increased 1% year over year.
EFX’s adjusted earnings of $1.43 per share beat the consensus mark by 4.4%. However, the bottom line declined 35.6% from the year-ago figure. Total revenues of $1.3 billion surpassed the consensus estimate by 1.5% but decreased 4.5% year over year.
MAN’s adjusted earnings of $1.61 per share lagged the consensus mark by 0.6% but matched our estimate. Revenues of $4.8 billion missed the consensus mark by 1.3% and our estimate by a slight margin. The top line decreased 7.6% year over year.
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Genpact (G) Stock Declines 7.5% Despite Q1 Earnings Beat
Genpact Limited (G - Free Report) reported mixed first-quarter 2023 results, wherein earnings beat the Zacks Consensus Estimate but revenues missed.
Adjusted EPS (excluding 11 cents from non-recurring items) of 68 cents outpaced the Zacks Consensus Estimate by 4.6% and increased 13.3% year over year. Revenues of $1.09 billion missed the consensus estimate by 0.6%. However the top line increased 2% year over year on a reported basis and 4% on a constant currency (cc) basis.
The earnings beat, however, failed to impress the market as the stock declined 7.5% since the date of earnings release on May 10.
Genpact Limited Price, Consensus and EPS Surprise
Genpact Limited price-consensus-eps-surprise-chart | Genpact Limited Quote
Quarterly Details
Data-Tech-AI services revenues (representing 45% of total revenues) were up 4% year over year on a reported basis and 6% at cc to $485 million.
Digital Operations services revenues of $604 million were up 0.4% year over year (3% at cc) and contributed 55% to total revenues.
Adjusted income from operations totaled $179 million, up 12% year over year. The adjusted operating income margin of 16.4% surged 140 basis points year over year.
Genpact exited the quarter with cash and cash equivalents of $552.3 million compared with $646.8 million recorded at the end of the previous quarter. Long-term debt totaled $1.24 billion compared with $1.25 billion reported in the prior quarter.
The company generated $34.1 billion in cash from operating activities, while capex was $12.6 million. Genpact returned $25.3 million to its shareholders through dividends. G repurchased approximately 631,000 of its common shares worth $30 million at an average price per share of $47.57.
Reposts 2023 Guidance
Revenues are anticipated to be between $4.64 billion and $4.71 billion, the mid-point ($4.68 billion) of which is above the Zacks Consensus Estimate of $4.66 billion.
Adjusted EPS is projected in the range of $2.92-$2.99. The mid-point ($2.955) of the guided range is below the Zacks Consensus Estimate of $2.98.
Adjusted income from operations margin is expected to be 16.8%.
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 of Some Service Providers
Omnicom (OMC - Free Report) reported better-than-expected first-quarter 2023 results.
OMC’s earnings of $1.56 per share beat the Zacks Consensus Estimate by 13% and our estimate by 11.4%. EPS increased 12.2% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 2.3% and our estimate by 1.4%. The top line increased 1% year over year.
Equifax (EFX - Free Report) also reported better-than-expected first-quarter 2023 results.
EFX’s adjusted earnings of $1.43 per share beat the consensus mark by 4.4%. However, the bottom line declined 35.6% from the year-ago figure. Total revenues of $1.3 billion surpassed the consensus estimate by 1.5% but decreased 4.5% year over year.
ManpowerGroup (MAN - Free Report) reported lower-than-expected first-quarter 2023 results.
MAN’s adjusted earnings of $1.61 per share lagged the consensus mark by 0.6% but matched our estimate. Revenues of $4.8 billion missed the consensus mark by 1.3% and our estimate by a slight margin. The top line decreased 7.6% year over year.