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Concentrix shares tumble 11% as guidance falls short of estimates

EditorRachael Rajan
Published 26/09/2024, 06:24 am
© Reuters.
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NEWARK, Calif. - Concentrix Corporation (NASDAQ:CNXC) saw its shares plummet 11.8% in after-hours trading on Wednesday after the technology and services company provided weaker-than-expected guidance for the fourth quarter and full year.

The company reported third-quarter adjusted earnings per share of $2.87, missing analyst estimates of $2.93. Revenue came in at $2.39 billion, slightly above the consensus of $2.38 billion and up 46.2% year-over-year. On a pro forma constant currency basis, revenue grew 2.6% compared to the same period last year.

However, Concentrix's outlook disappointed investors. For the fourth quarter, the company expects adjusted EPS of $2.90-$3.16, well below analyst projections of $3.48. Fourth-quarter revenue guidance of $2.42-$2.47 billion was in line with estimates of $2.465 billion.

Full-year fiscal 2024 guidance also fell short, with Concentrix forecasting adjusted EPS of $11.05-$11.31 versus analyst expectations of $11.71. The company sees full-year revenue of $9.591-$9.641 billion, compared to consensus estimates of $9.633 billion.

"Our third quarter marked another quarter of solid revenue growth and operating results," said Chris Caldwell, President and CEO of Concentrix. "We are also delighted to leverage our technology investments to bring our iX Hello product to market with velocity."

The company returned $60 million to shareholders through share repurchases and dividends in the quarter. Concentrix also announced a 10% increase in its quarterly dividend to $0.33275 per share.

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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