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Genpact Stock Rises 11% Since Q4 Earnings and Revenues Beat

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Genpact Limited (G - Free Report) reported impressive fourth-quarter 2024 results, beating the Zacks Consensus Estimate on both counts.

See Zacks Earnings Calendar to stay ahead of market-making news.

The stock has gained 11% since the release of results on Feb. 6, as a positive response to the better-than-expected results and strong guidance.

For the first quarter of 2025, Genpact expects adjusted EPS to be in the range of 79 cents to $80 cents, higher than the current Zacks Consensus Estimate of 77 cents. Revenues are anticipated between $1.202 billion and $1.213 billion, the midpoint ($1.21 billion) of which is in line with the current Zacks Consensus Estimate.

For 2025, Adjusted EPS is expected to be in the range of $3.52 to $3.59, the midpoint ($3.56) of which is higher than the current Zacks Consensus Estimate of $3.49. The company expects revenues to be between $5.029 billion and $5.125 billion, the midpoint ($5.08 billion) of which is higher than the current Zacks Consensus Estimate of $5.07 billion.

Quarterly EPS of 91 cents surpassed the consensus estimate by 5.8% and grew 11% year over year. Revenues of $1.25 billion beat the consensus mark by 1.7% and increased 8.9% from the year-ago quarter.

Genpact Limited Price, Consensus and EPS Surprise

Genpact Limited Price, Consensus and EPS Surprise

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

Other Quarterly Details of G

Data-Tech-AI services revenues (representing 48% of total revenues) increased 12% year over year on a reported basis and 11.7% on a constant currency basis to $595 million, surpassing our estimate of $578.7 million. Digital Operations services revenues of $654 million (52% of total revenues) increased 6.4% from the year-ago quarter’s actuals on a reported basis and 6.1% at cc, beating our estimate of $648.1 million.

Adjusted income from operations totaled $221 million and grew 9% on a year-over-year basis. Adjusted operating income margin of 17.7% stayed flat year over year.

Genpact exited the quarter with cash and cash equivalents of $648.2 million compared with $1 billion reported at the end of the preceding quarter. Long-term debt (less current portion) was $1.2 billion, flat with the prior quarter.

The company generated $203 million in cash from operating activities, while capital expenditure was $19.7 million. Genpact returned $26.7 million in dividends to shareholders and repurchased shares worth $85 million.

Other Guidance

For the first quarter of 2025, Genpact expects gross margin and adjusted income from operating margin to be around 35% and 16.5%, respectively. For 2025, gross margin and adjusted income from operating margin are anticipated to be around 36% and 17.3%, respectively.

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 Earnings Snapshots

Gartner, Inc. (IT - Free Report) reported better-than-expected fourth-quarter 2024 results. IT’s adjusted earnings per share of $5.6 beat the Zacks Consensus Estimate by 69.3% and increased 79.3% from the year-ago quarter. Revenues of $1.7 billion surpassed the consensus estimate by 1.8% and improved 8.2% year over year.

Broadridge Financial Solutions, Inc. (BR - Free Report) posted impressive second-quarter fiscal 2025 results.

BR’s adjusted earnings of $1.6 per share outpaced the consensus mark by 12.2% and surged 69.6% from the year-ago quarter. Total revenues of $1.6 billion surpassed the consensus mark by 3% and rose 12.8% year over year.

WM (WM - Free Report) reported mixed fourth-quarter 2024 results. WM’s quarterly adjusted earnings of $1.7 per share missed the consensus mark by 5% and declined 2.3% year over year. Total revenues of $5.9 billion surpassed the consensus mark by a slight margin and grew 13% from the year-ago quarter.

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