Concentrix Sees Q2 EPS $2.55-$2.70 Vs $2.83 Est.; Revenue $2.325B-$2.372B Vs $2.37B Est.; FY24 EPS $11.69-$12.50 Vs $11.96 Est.; Revenue $9.51B-$9.70B Vs $9.63B Est
Portfolio Pulse from Benzinga Newsdesk
Concentrix (CNXC) provided its Q2 and FY24 earnings guidance, with both EPS and revenue forecasts slightly below analyst estimates. The company anticipates a negative impact from foreign exchange rates but expects constant currency revenue growth of 1% to 3%. Operating income and non-GAAP operating income are also projected within specific ranges. Additionally, Concentrix plans to repurchase $100 million of its common stock during the final three quarters of fiscal 2024. The company noted challenges in providing a quantitative reconciliation of non-GAAP EPS to GAAP measures due to uncertainties in future acquisition contingent considerations and foreign currency fluctuations.
March 26, 2024 | 8:11 pm
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Concentrix forecasts Q2 and FY24 earnings below analyst expectations, plans a $100 million stock buyback, and faces challenges in reconciling non-GAAP to GAAP EPS due to forex and acquisition considerations.
The announcement of earnings forecasts below analyst expectations typically leads to negative investor sentiment in the short term, potentially causing a decrease in stock price. The planned stock buyback may offset some negative sentiment by signaling confidence from management, but the inability to provide a clear reconciliation between non-GAAP and GAAP EPS due to uncertainties adds to investor concerns, likely resulting in a negative impact on the stock price.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100