Business transformation services company Genpact (NYSE: G) will be announcing earnings results tomorrow afternoon. Here’s what investors should know.
Genpact beat analysts’ revenue expectations by 1.7% last quarter, reporting revenues of $1.25 billion, up 8.9% year on year. It was a strong quarter for the company, with a solid beat of analysts’ constant currency revenue estimates and an impressive beat of analysts’ full-year EPS guidance estimates.
Is Genpact a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Genpact’s revenue to grow 7% year on year to $1.21 billion, improving from the 3.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.79 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Genpact has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Genpact’s peers in the business process outsourcing & consulting segment, some have already reported their Q1 results, giving us a hint as to what we can expect. CRA delivered year-on-year revenue growth of 5.9%, beating analysts’ expectations by 3%, and Exponent reported flat revenue, topping estimates by 2.1%. CRA traded up 3.4% following the results while Exponent was down 1.3%.
Read our full analysis of CRA’s results here and Exponent’s results here.
There has been positive sentiment among investors in the business process outsourcing & consulting segment, with share prices up 11.2% on average over the last month. Genpact is up 5.9% during the same time and is heading into earnings with an average analyst price target of $56.13 (compared to the current share price of $49.57).
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