Back to top

Genpact (G) to Report Q4 Earnings: What's in the Cards?

Read MoreHide Full Article

Genpact Limited (G - Free Report) is slated to release fourth-quarter 2018 results on Feb 7, after market close.

Over the past three months, shares of Genpact have gained 4.3% against the 0.9% decline of the industry it belongs to.

 

Let's check out how things are shaping up for the announcement.

Strength Across Service Lines, Client Baseto Drive Top Line

The Zacks Consensus Estimate for fourth-quarter 2018 revenues is pegged at $809.73 million, indicating year-over-year growth of 10.3%. The upside is likely to be driven by strength in the company’s high-tech and life sciences verticals and contributions from CPG, manufacturing and healthcare. Increase in the company’s business process outsourcing (BPO) services (inclusive of the transformation services delivered to Global Clients) should also drive the company’s top line.

In third-quarter 2018, revenues of $747.97 million improved 5.5% year over year.

Going by client type, the consensus estimate for Global Client revenues is pegged at $741 million, indicating year-over-year growth of 10.8%. The upside is expected to be driven by strength across the company’s high tech, life sciences, consumer packaged goods, infrastructure, manufacturing and services and healthcare verticals. In third-quarter 2018, Global Client revenues of $683 million climbed 7% year over year.

The consensus mark for General Electric (GE) revenues is pegged at $67 million, indicating year-over-year growth of 3.1%. In third-quarter 2018, GE revenues of $65 million declined 11% year over year.

Based on the type of services offered, the consensus estimate for BPO revenues is pegged at $675 million, indicating year-over-year growth of 9.9%. The upside is likely to result from increase in services offered to Global Clients. In third-quarter 2018, total BPO revenues of $623 million increased 7% year over year.

The consensus mark for IT revenues is pegged at $127 million, indicating year-over-year growth of 4.9%. In third-quarter 2018, total IT revenues of $125 million remained flat year over year.

Genpact Limited Revenue (TTM)

The Zacks Consensus Estimate for earnings per share (EPS) in the to-be-reported quarter is pegged at 48 cents, indicating year-over-year growth of 11.6%. The bottom line should benefit from higher operating profits, which is likely to be partially offset by a tax impact.

In third-quarter 2018, adjusted earnings of 48 cents per share came ahead of the year-ago figure by 2 cents.

What Our Model Says

According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP . Zacks Rank #4 (Sell) or 5 (Strong Sell) stocks are best avoided, especially when the company is seeing negative estimate revisions. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .

Genpact has a Zacks Rank #3 and an Earnings ESP of -2.08%.

Genpact Limited Price and EPS Surprise

Here are a few stocks from the broader Zacks Business Services sector that investors may consider as our model shows that these have the right combination of elements to beat on earnings:

Steelcase (SCS - Free Report) has an Earnings ESP of +11.86% and a Zacks Rank #1. The company is expected to release fourth-quarter fiscal 2019 results on Mar 19. You can see the complete list of today’s Zacks #1 Rank stocks here.

IQVIA Holdings (IQV - Free Report) has an Earnings ESP of +0.37% and a Zacks Rank #3. The company is slated to report fourth-quarter 2018 results on Feb 14.

Fiserv (FISV - Free Report) has an Earnings ESP of +0.03% and a Zacks Rank #3. The company is scheduled to release fourth-quarter 2018 results on Feb 7.

Will You Make a Fortune on the Shift to Electric Cars?

Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.

With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.

It's not the one you think.

See This Ticker Free >>




In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Steelcase Inc. (SCS) - free report >>

Genpact Limited (G) - free report >>

Fiserv, Inc. (FISV) - free report >>

IQVIA Holdings Inc. (IQV) - free report >>

More from Zacks Analyst Blog

You May Like

Published in