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Genpact Shares Climb as Q1 Earnings, Guidance Beat Estimates

Published 09/05/2024, 21:14
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NEW YORK - Genpact Limited (NYSE:G), a global professional services firm, reported a robust first quarter with earnings and revenue surpassing Wall Street estimates.

The company's adjusted EPS came in at $0.73, $0.05 higher than the analyst consensus of $0.68. Total revenue reached $1.13 billion, outperforming the consensus estimate of $1.11 billion and marking a 4% increase from the same quarter last year.

President & CEO Balkrishan "BK" Kalra attributed the strong first-quarter performance to improved execution and better-than-expected results in the firm's Data-Tech-AI and Digital Operations segments.

Kalra also highlighted the company's new '3+1 Execution Framework' as a driving force behind the positive outcome, suggesting it will be instrumental in reaching Genpact's full potential.

The company's financial outlook for the second quarter of 2024 anticipates revenue between $1.143 billion and $1.148 billion, exceeding the analyst consensus of $1.127 billion.

For the full year 2024, Genpact forecasts adjusted EPS in the range of $3.01 to $3.04, with the lower end of the guidance matching the consensus estimate. Revenue guidance for FY2024 is set between $4.59 billion and $4.63 billion, with the midpoint slightly above the consensus of $4.593 billion.

Investors responded positively to the earnings report and guidance, with Genpact's stock rising 3% following the announcement. The uptick reflects market confidence in the company's future performance and strategic initiatives.

Genpact's continued investment in AI-led transformation and its commitment to operational efficiency are expected to sustain its growth trajectory. The firm's updated outlook for the year indicates a steady increase in gross margin and adjusted income from operations margin, underscoring its operational strength.

The company's financial health was also evident in its capital allocation, as it repurchased approximately 865,000 of its common shares during the quarter for a total consideration of approximately $30 million.

For investors, Genpact's first-quarter results and optimistic guidance for the coming quarters signal a company that is not only managing to outperform market expectations but also positioning itself for sustained growth in the evolving professional services landscape.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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