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Genpact (G) Q4 Earnings and Revenues Surpass Estimates
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Genpact Limited (G - Free Report) delivered impressive fourth-quarter 2019 results, with earnings and revenues beating the Zacks Consensus Estimate.
Adjusted earnings per share of 57 cents outpaced the consensus mark by 1.8% and increased 9.6% year over year. The increase was driven by higher operating profit of 7 cents and positive impact of a penny related to higher foreign exchange balance sheet remeasurement gains, partially offset by higher effective tax rate of 2 cents and increased share count of a penny.
Revenues amounted to $941 million, which beat the consensus estimate by 3.2% and improved 12.7% year over year on a reported basis as well as constant-currency basis. The top line was driven by large deals and growth in transformation services.
The stock has gained 30.3% over the past year, significantly outperforming the 18.2% growth of the industry it belongs to.
Quarter Details
Total BPO revenues (85% of total revenues) increased 14% year over year to $801 million. Total IT revenues (15% of total revenues) came in at $140 million, up 3% year over year.
Global Clients (86% of total revenues) revenues climbed 7% year over year on a reported basis and 8% at cc to $811 million. Global Client BPO revenues of $711 million improved 9% year over year on a reported basis and 10% on a constant-currency basis. Global Client IT revenues grew 4% year over year to $100 million.
General Electric (GE) revenues of $129 million increased 61% year over year. It contributed 14% to total revenues. GE BPO revenues improved 81% year over year to $90 million. GE IT revenues of $40 million increased 29%.
Adjusted income from operations totaled $159 million, up 12% year over year. Adjusted operating income margin was 16.9%, flat with the year-ago quarter figure.
Balance Sheet
Genpact exited the fourth quarter with cash and cash equivalents of $467.1 million compared with $368 million at the end of the previous quarter. Long-term debt (less current portion) totaled $1.3 billion compared with $950.9 million at the end of the third quarter.
Genpact returned around $65 million to shareholders through dividend payout and $30 million through share repurchase in 2019.
2020 Guidance
Adjusted EPS is projected between $2.24 and $2.28. The Zacks Consensus Estimate is pegged at $2.28.
The company expects revenues in the range of $3.89-$3.95 billion, the midpoint ($3.92 billion) of which is above the current Zacks Consensus Estimate of $3.91 billion.
Global Client revenues are expected to register 12-14% growth on a reported as well as constant-currency basis.
Adjusted operating income margin is continued to be anticipated around 16%.
Investors interested in the broader Zacks Business Services sector are awaiting fourth-quarter 2019 earnings of key players like Delphi , Waste Management (WM - Free Report) and Republic Services (RSG - Free Report) , each scheduled to release results on Feb 13.
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Genpact (G) Q4 Earnings and Revenues Surpass Estimates
Genpact Limited (G - Free Report) delivered impressive fourth-quarter 2019 results, with earnings and revenues beating the Zacks Consensus Estimate.
Adjusted earnings per share of 57 cents outpaced the consensus mark by 1.8% and increased 9.6% year over year. The increase was driven by higher operating profit of 7 cents and positive impact of a penny related to higher foreign exchange balance sheet remeasurement gains, partially offset by higher effective tax rate of 2 cents and increased share count of a penny.
Revenues amounted to $941 million, which beat the consensus estimate by 3.2% and improved 12.7% year over year on a reported basis as well as constant-currency basis. The top line was driven by large deals and growth in transformation services.
The stock has gained 30.3% over the past year, significantly outperforming the 18.2% growth of the industry it belongs to.
Quarter Details
Total BPO revenues (85% of total revenues) increased 14% year over year to $801 million. Total IT revenues (15% of total revenues) came in at $140 million, up 3% year over year.
Global Clients (86% of total revenues) revenues climbed 7% year over year on a reported basis and 8% at cc to $811 million. Global Client BPO revenues of $711 million improved 9% year over year on a reported basis and 10% on a constant-currency basis. Global Client IT revenues grew 4% year over year to $100 million.
General Electric (GE) revenues of $129 million increased 61% year over year. It contributed 14% to total revenues. GE BPO revenues improved 81% year over year to $90 million. GE IT revenues of $40 million increased 29%.
Adjusted income from operations totaled $159 million, up 12% year over year. Adjusted operating income margin was 16.9%, flat with the year-ago quarter figure.
Balance Sheet
Genpact exited the fourth quarter with cash and cash equivalents of $467.1 million compared with $368 million at the end of the previous quarter. Long-term debt (less current portion) totaled $1.3 billion compared with $950.9 million at the end of the third quarter.
Genpact returned around $65 million to shareholders through dividend payout and $30 million through share repurchase in 2019.
2020 Guidance
Adjusted EPS is projected between $2.24 and $2.28. The Zacks Consensus Estimate is pegged at $2.28.
The company expects revenues in the range of $3.89-$3.95 billion, the midpoint ($3.92 billion) of which is above the current Zacks Consensus Estimate of $3.91 billion.
Global Client revenues are expected to register 12-14% growth on a reported as well as constant-currency basis.
Adjusted operating income margin is continued to be anticipated around 16%.
Zacks Rank & Stocks to Consider
Genpact currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Investors interested in the broader Zacks Business Services sector are awaiting fourth-quarter 2019 earnings of key players like Delphi , Waste Management (WM - Free Report) and Republic Services (RSG - Free Report) , each scheduled to release results on Feb 13.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
See their latest picks free >>