We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties. You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies. In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Adjusted EPS (excluding 9 cents from non-recurring items) of 72 cents outpaced the Zacks Consensus Estimate by 4.4% and grew 2.9% year over year. Revenues of $1,105.5 million lagged the consensus estimate by 0.7%. However, the top line climbed 1.5% year over year on a reported basis and 3% at constant currency (cc).
The earnings beat pleased investors as the stock has gained 5.1% since the date of earnings release on Aug 9.
Data-Tech-AI services revenues (representing 45% of total revenues) were up 2% year over year on a reported basis and 3% at cc to $501 million. Yet, the metric missed our estimate of $502.1 million.
Digital Operations services revenues of $605 million (55%) inched up 1% year over year and 2% at cc. This also fell short of our projection of $612.7 million.
Adjusted income from operations totaled $186 million, up 2% year over year. Adjusted operating income margin of 16.8% plunged 10 basis points year over year.
Genpact exited the quarter with cash and cash equivalents of $646.8 million compared with $552.3 million recorded at the end of the previous quarter. Long-term debt reached $1.25 billion from $1.24 billion in the prior quarter.
The company generated $102.4 million in cash from operating activities, while capex was $10.2 million. Genpact returned $23 million to shareholders through dividends. G repurchased approximately 3.2 million of its common shares during the quarter for total consideration of $120 million at an average price per share of $37.68.
Dims 2023 Guidance
Revenues are anticipated to be between $4.59 billion and $4.64 billion (prior view: $4.64-$4.71 billion), the mid-point ($4.615 billion) of which is below the Zacks Consensus Estimate of $4.65 billion.
Adjusted EPS is projected in the range of $2.91-$2.94 (prior view: $2.92-$2.99). The mid-point ($2.925) of the guided range is below the Zacks Consensus Estimate of $2.94.
Adjusted income from operations margin is expected to be 16.8%.
Recent Earnings Snapshots of Some Service Providers
Omnicom (OMC - Free Report) reported mixed second-quarter 2023 results, wherein earnings surpassed the Zacks Consensus Estimate but revenues missed the same.
OMC’s earnings of $1.81 per share beat the consensus estimate by 0.6% and climbed 7.7% year over year. Total revenues of $3.6 billion lagged the consensus estimate by 0.3% but inched up 1.2% year over year.
Equifax (EFX - Free Report) reported mixed second-quarter 2023 results, wherein earnings beat the Zacks Consensus Estimate but revenues disappointed.
EFX’s adjusted earnings came in at $1.71 per share, outpacing the consensus mark by 2.4%. Yet, the bottom line tumbled 18.2% from the year-ago figure. Total revenues of $1.32 billion fell short of the consensus estimate by 0.4% but matched the prior-year figure on a reported basis.
Interpublic’s (IPG - Free Report) second-quarter 2023 earnings surpassed the Zacks Consensus Estimate while revenues lagged the same.
IPG’s adjusted earnings reached 74 cents per share, outshining the Zacks Consensus Estimate by 23.3%. Nonetheless, the metric declined 17.5% on a year-over-year basis. Net revenues of $2.33 billion missed the consensus estimate by 2.9% and plunged 14.9% on a year-over-year basis. Total revenues of $2.67 billion decreased 2.6% year over year.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Genpact (G) Stock Increases 5.1% Since Q2 Earnings Beat
Genpact Limited (G - Free Report) reported mixed second-quarter 2023 results, wherein earnings beat the Zacks Consensus Estimate but revenues missed.
Adjusted EPS (excluding 9 cents from non-recurring items) of 72 cents outpaced the Zacks Consensus Estimate by 4.4% and grew 2.9% year over year. Revenues of $1,105.5 million lagged the consensus estimate by 0.7%. However, the top line climbed 1.5% year over year on a reported basis and 3% at constant currency (cc).
The earnings beat pleased investors as the stock has gained 5.1% since the date of earnings release on Aug 9.
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 2% year over year on a reported basis and 3% at cc to $501 million. Yet, the metric missed our estimate of $502.1 million.
Digital Operations services revenues of $605 million (55%) inched up 1% year over year and 2% at cc. This also fell short of our projection of $612.7 million.
Adjusted income from operations totaled $186 million, up 2% year over year. Adjusted operating income margin of 16.8% plunged 10 basis points year over year.
Genpact exited the quarter with cash and cash equivalents of $646.8 million compared with $552.3 million recorded at the end of the previous quarter. Long-term debt reached $1.25 billion from $1.24 billion in the prior quarter.
The company generated $102.4 million in cash from operating activities, while capex was $10.2 million. Genpact returned $23 million to shareholders through dividends. G repurchased approximately 3.2 million of its common shares during the quarter for total consideration of $120 million at an average price per share of $37.68.
Dims 2023 Guidance
Revenues are anticipated to be between $4.59 billion and $4.64 billion (prior view: $4.64-$4.71 billion), the mid-point ($4.615 billion) of which is below the Zacks Consensus Estimate of $4.65 billion.
Adjusted EPS is projected in the range of $2.91-$2.94 (prior view: $2.92-$2.99). The mid-point ($2.925) of the guided range is below the Zacks Consensus Estimate of $2.94.
Adjusted income from operations margin is expected to be 16.8%.
Genpact currently carries a Zacks Rank #2 (Buy). 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 mixed second-quarter 2023 results, wherein earnings surpassed the Zacks Consensus Estimate but revenues missed the same.
OMC’s earnings of $1.81 per share beat the consensus estimate by 0.6% and climbed 7.7% year over year. Total revenues of $3.6 billion lagged the consensus estimate by 0.3% but inched up 1.2% year over year.
Equifax (EFX - Free Report) reported mixed second-quarter 2023 results, wherein earnings beat the Zacks Consensus Estimate but revenues disappointed.
EFX’s adjusted earnings came in at $1.71 per share, outpacing the consensus mark by 2.4%. Yet, the bottom line tumbled 18.2% from the year-ago figure. Total revenues of $1.32 billion fell short of the consensus estimate by 0.4% but matched the prior-year figure on a reported basis.
Interpublic’s (IPG - Free Report) second-quarter 2023 earnings surpassed the Zacks Consensus Estimate while revenues lagged the same.
IPG’s adjusted earnings reached 74 cents per share, outshining the Zacks Consensus Estimate by 23.3%. Nonetheless, the metric declined 17.5% on a year-over-year basis. Net revenues of $2.33 billion missed the consensus estimate by 2.9% and plunged 14.9% on a year-over-year basis. Total revenues of $2.67 billion decreased 2.6% year over year.