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Yahoo
16 hours ago
- Business
- Yahoo
Is Innodata Stock's 4.65X PS Still Worth it? Buy, Sell, or Hold?
Innodata INOD shares are trading at a premium, as suggested by the Value Score of F. INOD stock is trading at a premium, with a forward 12-month Price/Sales of 4.65X compared with the Zacks Computer Services industry's shares are trading at a premium compared to its closest peers, including Broadridge Financial BR, CSG Systems International CSGS and EXL Service EXLS. In terms of the forward 12-month P/S, Broadridge Financial, CSG Systems International and EXL Service are trading at 3.88X, 1.54X and 3.55X, respectively. Image Source: Zacks Investment Research In terms of share price movement, Innodata shares have declined 0.8% year to date (YTD), underperforming the industry's and the Zacks Computer & Technology sector's return of 1.4% and 1.1%, respectively. Innodata shares have underperformed Broadridge Financial, CSG Systems International and EXL Service YTD, shares of which have surged 4.9%, 23.4% and 6.5%, respectively, over the same timeframe. Image Source: Zacks Investment Research The company plans to invest in AI technology supporting both current and prospective customers, as well as an expanding salesforce. In the second quarter of 2025, Innodata plans to invest $2 billion to support its largest customer. However, INOD's plan to invest in new programs before revenue realization is expected to weigh on near-term margins. Innodata targets an adjusted gross margin of 40%, which is significantly lower than the 43% reported in the first quarter of 2025 and the 41% in the year-ago quarter. Moreover, revenues from the largest customer are expected to decline 5% in the second quarter, which is a what should investors do with INOD shares at the current valuation? Let's find out. The Zacks Consensus Estimate for second-quarter 2025 earnings is pegged at 11 cents per share, down 39% over the past 60 days. Innodata reported break-even earnings in the year-ago quarter. The consensus mark for 2025 earnings is pegged at 69 cents per share, down 6.8% over the past 60 days, suggesting a 22.47% year-over-year decline. Innodata Inc. price-consensus-chart | Innodata Inc. Quote Innodata's Generative AI Test & Evaluation Platform is powered by NVIDIA's advanced inferencing technology. The platform integrates NVIDIA NIM microservices with Innodata's expertise in LLM red-teaming and risk mitigation. This combination enables businesses to accelerate model development while enhancing AI trustworthiness, a crucial factor for enterprise adoption. MasterClass was the inaugural charter customer, and Innodata is in active discussion with a leading global consulting firm for a go-to-market partnership. The solution will be generally available in late second-quarter benefits from massive investment promises made by the 'Magnificent 7,' including Microsoft's $80 billion and Meta Platforms' $64-$72 billion. The company is expanding relationships with key customers, including a second master statement of work with its largest client, tapping a separate, significantly larger budget. The company secured approximately $8 million in new engagements from four of its other Big Tech customers. Formerly, small accounts are showing material expansion opportunities into multi-million-dollar is onboarding several major clients, including top global firms in enterprise tech, cloud software, digital commerce and healthcare technology, each with significant growth potential. New customer acquisitions are expected to provide meaningful upside to both the top and bottom lines. The company expects 2025 revenues to jump 40% year over year to $238.6 million, driven by an expanding clientele. Innodata serves the generative AI IT services market that is expected to be worth $200 billion by 2029, offering significant growth prospects. The company is building the capability to collect and create generative AI training data as LLMs become more complex and advanced. INOD continues to invest in expanding languages like Arabic and French within domains like math and chemistry, for which the company is creating LLM training data and performing reinforcement learning. For current shareholders, holding the stock may be justified given Innodata's strong positioning in the growing generative AI safety domain and impressive revenue growth prospects. However, new investors might benefit from patience, carefully monitoring both the company's execution of its platform launch and any potential valuation adjustments in the currently has a Zacks Rank #3 (Hold), suggesting that it may be wise to wait for a more favorable entry point to start accumulating the stock. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Broadridge Financial Solutions, Inc. (BR) : Free Stock Analysis Report ExlService Holdings, Inc. (EXLS) : Free Stock Analysis Report CSG Systems International, Inc. (CSGS) : Free Stock Analysis Report Innodata Inc. (INOD) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
01-05-2025
- Business
- Yahoo
Fintech firm Broadridge's profit jumps on investor communications unit strength
(Reuters) -Fintech firm Broadridge Financial reported a 14% jump in third-quarter profit on Thursday, helped by strong growth in its investor communications unit. The Lake Success, New York-based company, Broadridge, reported strong earnings due to increased demand for handling investor communications ahead of annual shareholder meetings during the U.S. proxy season. Broadridge handles the distribution of proxy materials and voting process for its banks, broker-dealers and other clients, positioning it in a niche market that analysts say gives it a strong competitive edge. Operating income was $345 million or $2.05 per share for the three months ended March 31, compared with $303 million or $1.79 per share last year. Revenue at its investor communication solutions unit grew 4% to $1.35 billion. The global technology and operations segment, which provides infrastructure for trading activity, also saw a 9% revenue jump to $464 million. Total revenue rose 5% to $1.81 billion, the company said. Sign in to access your portfolio
Reuters
01-05-2025
- Business
- Reuters
Fintech firm Broadridge's profit jumps on investor communications unit strength
May 1 (Reuters) - Fintech firm Broadridge Financial (BR.N), opens new tab reported a 14% jump in third-quarter profit on Thursday, helped by strong growth in its investor communications unit. The Lake Success, New York-based company, Broadridge, reported strong earnings due to increased demand for handling investor communications ahead of annual shareholder meetings during the U.S. proxy season. Broadridge handles the distribution of proxy materials and voting process for its banks, broker-dealers and other clients, positioning it in a niche market that analysts say gives it a strong competitive edge. Operating income was $345 million or $2.05 per share for the three months ended March 31, compared with $303 million or $1.79 per share last year. Revenue at its investor communication solutions unit grew 4% to $1.35 billion. The global technology and operations segment, which provides infrastructure for trading activity, also saw a 9% revenue jump to $464 million. Total revenue rose 5% to $1.81 billion, the company said.
Reuters
31-01-2025
- Business
- Reuters
Broadridge Financial beats Q2 profit estimates on strong Investor Communication demand
Jan 31 (Reuters) - Fintech firm Broadridge Financial (BR.N), opens new tab beats Wall Street estimates for second-quarter profit on Friday, helped by resilient demand in its investor communication business. WHY IT'S IMPORTANT Broadridge provides investor communications and technology-driven services to banks, broker-dealers, asset managers and corporate issuers. Expectations of lower corporate taxes and a more business-friendly regulatory environment under the Trump administration have boosted clients' confidence, fueling demand for services that strengthen their digital infrastructure and helping companies such as Broadridge. Advertisement · Scroll to continue Report this ad CONTEXT The company business is split into two segments, investor communication solutions, which accounts for the majority of its revenue, and global technology and operations. The first and second quarters are seasonally weaker quarters for Broadridge as the heavier volumes of investor communications occurs in the spring for most public companies. But, the financial services industry is undergoing rapid digital transformation, with companies increasingly adopting cloud computing, artificial intelligence, and blockchain technologies. Last Nov, Broadridge completed the acquisition of the Securities Industry Services (SIS) platform, wealth and capital markets technology platform of Kyndryl for around $185 million increasing its exposure in the Canadian wealth market. BY THE NUMBERS Broadridge posted adjusted earnings per share of $1.56 for the three months ended Dec. 31, compared with analysts' average estimate of $1.47, according to data compiled by LSEG. The Lake Success, New York-based company's global technology and operations unit recorded revenue of $440 million in the quarter, up from $405.4 million a year ago. Revenue at its investor communication solutions business rose nearly 15% to $1.15 billion in the second quarter. The company's total revenue rose 13% to $1.59 billion, in this quarter.
