Latest news with #Balkrishan"BK"Kalra
Yahoo
27-05-2025
- Business
- Yahoo
Winners And Losers Of Q1: Genpact (NYSE:G) Vs The Rest Of The Business Process Outsourcing & Consulting Stocks
The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let's take a look at how Genpact (NYSE:G) and the rest of the business process outsourcing & consulting stocks fared in Q1. The sector stands to benefit from ongoing digital transformation, increasing corporate demand for cost efficiencies, and the growing complexity of regulatory and cybersecurity landscapes. For those that invest wisely, AI and automation capabilities could emerge as competitive advantages, enhancing process efficiencies for the companies themselves as well as their clients. On the flip side, AI could be a headwind as well as the technology could lower the barrier to entry in the space and give rise to more self-service solutions. Additional challenges in the years ahead could include wage inflation for highly skilled consultants and potential regulatory scrutiny on outsourcing practices—especially in industries like finance and healthcare where who has access to certain data matters greatly. The 7 business process outsourcing & consulting stocks we track reported a satisfactory Q1. As a group, revenues were in line with analysts' consensus estimates while next quarter's revenue guidance was 0.5% below. In light of this news, share prices of the companies have held steady as they are up 3.5% on average since the latest earnings results. Originally spun off from General Electric in 2005 to provide business process services, Genpact (NYSE:G) is a global professional services firm that helps businesses transform their operations through digital technology, AI, and data analytics solutions. Genpact reported revenues of $1.21 billion, up 7.4% year on year. This print was in line with analysts' expectations, but overall, it was a slower quarter for the company as it lowered its full-year revenue and EPS guidance. "We entered 2025 with strong momentum. Revenue in the first quarter grew 8% year-over-year with Data-Tech-AI revenue up 12%, on a constant currency basis, driving adjusted EPS growth of 16%. Looking ahead, our deep process and domain expertise remains a key competitive advantage as we partner with clients to optimize costs and accelerate transformation using AI and other advanced technologies," said Balkrishan "BK" Kalra, Genpact's President & CEO. Genpact delivered the weakest full-year guidance update of the whole group. The stock is down 12.2% since reporting and currently trades at $43.51. Read our full report on Genpact here, it's free. Often retained for high-stakes matters with multibillion-dollar implications, CRA International (NASDAQ:CRAI) provides economic, financial, and management consulting services to corporations, law firms, and government agencies for litigation, regulatory proceedings, and business strategy. CRA reported revenues of $181.9 million, up 5.9% year on year, outperforming analysts' expectations by 3%. The business had a very strong quarter with an impressive beat of analysts' EPS estimates and full-year revenue guidance slightly topping analysts' expectations. CRA pulled off the biggest analyst estimates beat and highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 15.3% since reporting. It currently trades at $185.95. Is now the time to buy CRA? Access our full analysis of the earnings results here, it's free. With over 120 offices across 33 states and a team of more than 6,700 professionals, CBIZ (NYSE:CBZ) provides accounting, tax, benefits, insurance brokerage, and advisory services to help small and mid-sized businesses manage their finances and operations. CBIZ reported revenues of $838 million, up 69.5% year on year, falling short of analysts' expectations by 2.6%. It was a slower quarter as it posted full-year revenue guidance missing analysts' expectations. CBIZ delivered the fastest revenue growth but had the weakest performance against analyst estimates in the group. As expected, the stock is down 6.9% since the results and currently trades at $71.93. Read our full analysis of CBIZ's results here. With a team of experts deployed across 30+ countries to tackle complex business challenges, FTI Consulting (NYSE:FCN) is a global business advisory firm that helps organizations manage change, mitigate risk, and resolve disputes across financial, legal, operational, and regulatory matters. FTI Consulting reported revenues of $898.3 million, down 3.3% year on year. This print came in 0.9% below analysts' expectations. More broadly, it was actually a strong quarter as it produced an impressive beat of analysts' EPS estimates. FTI Consulting had the slowest revenue growth among its peers. The stock is flat since reporting and currently trades at $166.75. Read our full, actionable report on FTI Consulting here, it's free. Founded in 2002 during a time of significant regulatory change in corporate America, Huron Consulting Group (NASDAQ:HURN) is a professional services company that helps organizations develop growth strategies, optimize operations, and implement digital transformation solutions. Huron reported revenues of $404.1 million, up 11.2% year on year. This number topped analysts' expectations by 0.8%. Overall, it was a strong quarter as it also logged a solid beat of analysts' EPS estimates and a narrow beat of analysts' full-year EPS guidance estimates. The stock is up 10% since reporting and currently trades at $149.50. Read our full, actionable report on Huron here, it's free. As a result of the Fed's rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed's 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump's victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025. Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. Join Paid Stock Investor Research Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here.
Yahoo
08-05-2025
- Business
- Yahoo
Genpact (NYSE:G) Reports Q1 In Line With Expectations But Stock Drops 15.3%
As you can see below, Genpact's sales grew at a decent 5.9% compounded annual growth rate over the last five years. This shows its offerings generated slightly more demand than the average business services company, a useful starting point for our analysis. With $4.85 billion in revenue over the past 12 months, Genpact is one of the larger companies in the business services industry and benefits from a well-known brand that influences purchasing decisions. Examining a company's long-term performance can provide clues about its quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Originally spun off from General Electric in 2005 to provide business process services, Genpact (NYSE:G) is a global professional services firm that helps businesses transform their operations through digital technology, AI, and data analytics solutions. "We entered 2025 with strong momentum. Revenue in the first quarter grew 8% year-over-year with Data-Tech-AI revenue up 12%, on a constant currency basis, driving adjusted EPS growth of 16%. Looking ahead, our deep process and domain expertise remains a key competitive advantage as we partner with clients to optimize costs and accelerate transformation using AI and other advanced technologies," said Balkrishan "BK" Kalra, Genpact's President & CEO. Free Cash Flow was $17.86 million, up from -$50.23 million in the same quarter last year The company dropped its revenue guidance for the full year to $4.93 billion at the midpoint from $5.08 billion, a 2.8% decrease Is now the time to buy Genpact? Find out in our full research report . Business transformation services company Genpact (NYSE:G) met Wall Street's revenue expectations in Q1 CY2025, with sales up 7.4% year on year to $1.21 billion. On the other hand, next quarter's revenue guidance of $1.22 billion was less impressive, coming in 2.3% below analysts' estimates. Its non-GAAP profit of $0.84 per share was 5.8% above analysts' consensus estimates. Story Continues Genpact Quarterly Revenue We at StockStory place the most emphasis on long-term growth, but within business services, a half-decade historical view may miss recent innovations or disruptive industry trends. Genpact's annualized revenue growth of 5.1% over the last two years aligns with its five-year trend, suggesting its demand was stable. Genpact Year-On-Year Revenue Growth We can dig further into the company's sales dynamics by analyzing its constant currency revenue, which excludes currency movements that are outside their control and not indicative of demand. Over the last two years, its constant currency sales averaged 5.4% year-on-year growth. Because this number aligns with its normal revenue growth, we can see that Genpact has properly hedged its foreign currency exposure. Genpact Constant Currency Revenue Growth This quarter, Genpact grew its revenue by 7.4% year on year, and its $1.21 billion of revenue was in line with Wall Street's estimates. Company management is currently guiding for a 3.9% year-on-year increase in sales next quarter. Looking further ahead, sell-side analysts expect revenue to grow 6.6% over the next 12 months, similar to its two-year rate. This projection is above the sector average and indicates its newer products and services will spur better top-line performance. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. Adjusted Operating Margin Adjusted operating margin is a key measure of profitability. Think of it as net income (the bottom line) excluding the impact of non-recurring expenses, taxes, and interest on debt - metrics less connected to business fundamentals. Genpact has been an efficient company over the last five years. It was one of the more profitable businesses in the business services sector, boasting an average adjusted operating margin of 16.7%. Looking at the trend in its profitability, Genpact's adjusted operating margin might fluctuated slightly but has generally stayed the same over the last five years. This raises questions about the company's expense base because its revenue growth should have given it leverage on its fixed costs, resulting in better economies of scale and profitability. Genpact Trailing 12-Month Operating Margin (Non-GAAP) In Q1, Genpact generated an adjusted operating profit margin of 17.3%, up 1.2 percentage points year on year. This increase was a welcome development and shows it was more efficient. Earnings Per Share We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company's growth is profitable. Genpact's EPS grew at a solid 9.5% compounded annual growth rate over the last five years, higher than its 5.9% annualized revenue growth. However, this alone doesn't tell us much about its business quality because its adjusted operating margin didn't expand. Genpact Trailing 12-Month EPS (Non-GAAP) Diving into Genpact's quality of earnings can give us a better understanding of its performance. A five-year view shows that Genpact has repurchased its stock, shrinking its share count by 9.2%. This tells us its EPS outperformed its revenue not because of increased operational efficiency but financial engineering, as buybacks boost per share earnings. Genpact Diluted Shares Outstanding In Q1, Genpact reported EPS at $0.84, up from $0.73 in the same quarter last year. This print beat analysts' estimates by 5.8%. Over the next 12 months, Wall Street expects Genpact's full-year EPS of $3.39 to grow 6.2%. Key Takeaways from Genpact's Q1 Results It was encouraging to see Genpact beat analysts' constant currency revenue and EPS expectations this quarter. On the other hand, it lowered its full-year revenue and EPS guidance. Overall, this was a softer quarter. The stock traded down 15.3% to $41.99 immediately following the results. Genpact's latest earnings report disappointed. One quarter doesn't define a company's quality, so let's explore whether the stock is a buy at the current price. When making that decision, it's important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it's free.
