Cigna earnings beat by $0.04, revenue topped estimates
Investing.com -- Shares of Genpact Limited (NYSE:G) rose 8% today following a strong fourth-quarter earnings report that exceeded consensus expectations, coupled with an upgrade to ’Buy’ from TD Cowen. The professional services firm reported a fourth-quarter earnings per share (EPS) of $0.91, which was $0.05 higher than the analyst estimate of $0.86. Revenue for the quarter was reported at $1.25 billion, surpassing the consensus estimate of $1.23 billion.
The company’s optimistic guidance for the first quarter of 2025 anticipates an EPS of $0.79-$0.80, versus the consensus of $0.78, and revenue projections of $1.202-1.213 billion, compared to the consensus of $1.199 billion. For the full fiscal year 2025, Genpact expects an EPS of $3.52-$3.59, against the consensus of $3.45, with revenue forecasts ranging from $5.029 to $5.125 billion, slightly below the consensus estimate of $5.05 billion.
In the previous year, Genpact’s net revenues increased by 6.5% to $4.77 billion, with its Data-Tech-AI and Digital Operations segments showing growth of 6.9% and 6.1%, respectively. The company also reported an increase in its quarterly dividend by 11% and an additional $500 million in share repurchase authorization.
Bryan Bergin, an analyst from TD Cowen, provided a positive outlook on the company’s performance, stating, "Turnaround traction has built steam & G is apt to ultimately return to DD top & bottom line growth in ’25 and a DD EPS med-term CAGR." Bergin upgraded Genpact from ’Hold’ to ’Buy’ and increased the price target to $60.00 from $45.00. Similarly, BofA Securities analyst Kunal Tayal raised the price target to $58.00 from $52.00, maintaining a ’Buy’ rating.
Genpact’s President and CEO, Balkrishan "BK" Kalra, expressed confidence in the company’s trajectory, highlighting strong quarterly growth, particularly in the Data-Tech-AI segment, and a record $5.7 billion in new bookings for the year, a 15% increase from the previous year.
Investors appear to be responding to the combination of solid earnings, positive future guidance, and analyst upgrades, reflecting confidence in Genpact’s ability to maintain its growth and capitalize on its investments in Data, AI, and Agentic Solutions.
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