Dj Equifax Inc. Stock Underperforms Thursday When Compared To Competitors

Genpact Limited G reported impressive third-quarter 2024 results, beating the Zacks Consensus Estimate on both counts.

The stock has soared 11.6% since the release of results on Nov. 7, as a positive response to the better-than-expected result and strong 2024 guidance.

Genpact raised its 2024 guidance. It currently expects revenues to be between $4.74 billion and $4.751 billion compared with the prior expectation of $4.656 billion and $4.701 billion. The revised guided range is above the current Zacks Consensus Estimate of $4.73 billion.

Adjusted EPS is expected to be in the range of $3.23 to $3.24 compared with the prior expectation of $3.14 to $3.18. The revised guided range is above the current Zacks Consensus Estimate of $3.16. The gross margin is anticipated to be around 35.4% compared with 35.3% anticipated earlier. Adjusted income from operating margin is expected to be 17.1%, while the prior expectation was 17%.

Quarterly EPS of 85 cents surpassed the consensus estimate by 6.3% and grew 11.8% year over year. Revenues of $1.21 billion beat the consensus mark by 2% and increased 6.6% from the year-ago quarter.

Genpact Limited Price, Consensus and EPS Surprise

Genpact Limited price-consensus-eps-surprise-chart | Genpact Limited Quote

Other Quarterly Details of G

Data-Tech-AI services revenues (representing 47% of total revenues) increased 9% year over year on a reported, as well as constant currency basis to $569 million, surpassing our estimate of $547.3 million. Digital Operations services revenues of $642 million (53% of total revenues) increased 5% from the year-ago quarter’s actuals on a reported basis and at cc, beating our estimate of $636.1 million.

Adjusted income from operations totaled $213 million and grew 9% on a year-over-year basis. Adjusted operating income margin of 17.6% increased 40 basis points year over year.

Genpact exited the quarter with cash and cash equivalents of $1 billion compared with $914.2 million reported at the end of the preceding quarter. Long-term debt (less current portion) was $1.2 billion, flat with the prior quarter.

The company generated $228 million in cash from operating activities, while capital expenditure was $19.8 million. Genpact returned $26.9 million in dividends to shareholders and repurchased shares worth $75 million.

G’s Q4 Guidance

For the fourth quarter of 2024, Genpact expects revenues to be between $1.222 billion and $1.233 billion, the midpoint of which is in line with the current Zacks Consensus Estimate of $1.23. Gross margin and adjusted income from operating margin are anticipated to be around 35.6% and 17.6%, respectively.

G 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

Omnicom OMC reported impressive third-quarter 2024 results, wherein both earnings and revenues beat the Zacks Consensus Estimate.

OMC’s earnings of $2 per share beat the consensus estimate by 3.1% and increased 9.1% year over year. Total revenues of $3.9 billion surpassed the consensus estimate by 2.3% and increased 8.5% year over year.

Equifax EFX reported mixed third-quarter 2024 results, wherein earnings surpassed the Zacks Consensus Estimate while revenues missed the same.

EFX’s adjusted earnings were $1.8 per share, beating the Zacks Consensus Estimate by a slight margin and increasing by 5.1% from the year-ago quarter’s actual. Total revenues of $1.4 billion missed the consensus estimate by a slight margin but increased 9.3% from the year-ago quarter.

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