Street Calls of the Week
WASHINGTON - Ibex Limited (NASDAQ:IBEX) shares surged 23% after the business process outsourcing provider reported fourth quarter earnings and revenue that significantly exceeded analyst expectations, driven by strong performance across its top verticals.
The company reported adjusted earnings per share of $0.87 for the fourth quarter, beating analyst estimates of $0.70 by 24%. Revenue jumped to $147.1 million, an 18.2% increase YoY and well above the consensus estimate of $129.21 million. The strong performance was fueled by growth in Retail & E-commerce (+24.5%), HealthTech (+19.0%), and Travel, Transportation and Logistics (+10.0%).
"Ibex continues to outperform the BPO market, completing a tremendous fourth quarter and fiscal year 2025 with record financial results across the board," said Bob Dechant, ibex CEO. "This quarter marked the shift from proof of concept for our AI solutions to full scale deployments, setting the table for future growth."
For the full fiscal year 2025, ibex reported revenue of $558.3 million, up 9.8% YoY, with adjusted EPS of $2.75, representing a 30.7% increase from the previous year. The company generated record free cash flow of $27.3 million for the year.
Looking ahead, ibex provided guidance for fiscal year 2026, projecting revenue between $590 million and $610 million, with adjusted EBITDA expected to range from $75 million to $79 million. For the first quarter of fiscal 2026, the company anticipates revenue between $143 million and $146 million and adjusted EBITDA between $17.5 million and $19 million.
The company also reported that it repurchased approximately 3.9 million shares during fiscal 2025, representing 23% of its outstanding shares, which contributed to the strong EPS growth.
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