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Genpact's (G) Q4 Earnings Surpass Estimates, Increase Y/Y

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Genpact Limited (G - Free Report) reported impressive fourth-quarter 2023 results, wherein earnings and revenues beat the Zacks Consensus Estimate.

Quarterly EPS of 68 cents surpassed the consensus estimate by 4.6% and increased 9.7% on a year-over-year basis. Revenues of $1.15 billion surpassed the consensus mark by 2.1% and increased 4% year over year.

Genpact’s shares have declined 25.6% in the past year against the 14% rise of the industry it belongs to.

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

Data-Tech-AI services revenues (representing 44% of total revenues) increased 3% year over year on a reported basis and 2% on a constant currency basis to $507 million. Yet, the metric missed our estimate of $548.5 million. Digital Operations services revenues of $639 million (56% of total revenues) inched up 5% year over year on a reported basis and 4% at cc. This surpassed our projection of $624.8 million.

Adjusted income from operations totaled $203 million, up 9% year over year. Adjusted operating income margin of 17.7% increased 70 basis points year over year.

Genpact exited the quarter with cash and cash equivalents of $583.7 million compared with $541 million recorded at the end of the previous quarter. Long-term debt was $824.7 million compared with $1.2 billion at the end of the prior quarter. The company generated $192 million in cash from operating activities, while capex was $18.1 million. Genpact returned $24.8 million to shareholders through dividends.

2024 Guidance

The company expects revenues to be within $4.57-$4.61 billion. The current guidance is lower than the Zacks Consensus Estimate of $4.66 billion. Adjusted EPS is expected to be $3.00 to $3.03. The guidance is below the Zacks Consensus Estimate of $3.10. Adjusted income from operations margin is expected to be 17%.

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

Robert Half (RHI - Free Report) reported better-than-expected fourth-quarter 2023 results.

Quarterly earnings of 83 cents per share beat the consensus mark by 1.2% but declined 39.4% year over year. RHI’s revenues of $1.5 billion beat the consensus mark by a slight margin but decreased 14.7% year over year.

Aptiv (APTV - Free Report)  reported mixed fourth-quarter 2023 results, with earnings beating the Zacks Consensus Estimate but revenues missing the same.

Adjusted earnings of $1.4 per share beat the Zacks Consensus Estimate by 8.5% and increased 10.2% year over year. APTV’s revenues of $4.9 billion missed the Zacks Consensus Estimate by 0.5% but increased 6% year over year.

S&P Global (SPGI - Free Report) reported mixed fourth-quarter results, wherein earnings missed the Zacks Consensus Estimate but revenues beat the same.

Adjusted EPS of $3.13 missed the Zacks Consensus Estimate by 0.6% but increased 23.2% year over. Revenues of $3.2 billion surpassed the consensus estimate by 0.5% and improved 7.3% year over year.


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