Globant stock plunges 11% as guidance disappoints following top-line miss

Published 20/02/2025, 23:06
Globant stock plunges 11% as guidance disappoints following top-line miss

NEW YORK - Globant S.A. (NYSE: GLOB) shares plunged 11% in after-hours trading on Thursday after the digital technology services provider issued weaker-than-expected guidance for the first quarter and full year 2025, overshadowing its fourth quarter earnings beat.

The Luxembourg-based company reported adjusted earnings per share of $1.75 for the fourth quarter, surpassing analyst estimates of $1.73. Revenue rose 10.6% year-over-year to $642.5 million, slightly below the consensus forecast of $645.44 million.

However, Globant’s outlook fell short of Wall Street expectations. For the first quarter of 2025, the company projects adjusted EPS of $1.55-$1.63 on revenue of $618-628 million, compared to analyst estimates of $1.65 EPS and $637 million in revenue.

The full-year 2025 guidance was also disappointing, with Globant forecasting adjusted EPS of $6.80-$7.20 on revenue of $2.635-2.705 billion. Analysts were expecting EPS of $7.34 and revenue of $2.746 billion.

"Globant achieved another quarter of record revenue, reaching $642.5 million, which reflects robust sequential growth, alongside an all-time high annual revenue of $2,415.7 million," said Juan Urthiague, Globant’s CFO. "We are confident in our ability to maintain this momentum and build on our success as we head into 2025."

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