Genpact Limited, a global professional services firm, announced its fourth-quarter 2023 financial results, surpassing market expectations and exhibiting growth.

Strong Financial Performance

Genpact reported an impressive quarterly EPS of 68 cents, surpassing the consensus estimate by 4.6% and marking a 9.7% increase from the previous year. Revenues of $1.15 billion also exceeded expectations, surpassing the consensus mark by 2.1% and demonstrating a 4% year-over-year increase.

Market Performance

Despite the positive financial report, Genpact’s shares have experienced a decline of 25.6% in the past year, compared to the 14% rise of the industry it belongs to.

Revenue Streams and Financial Health

Data-Tech-AI services revenues, representing 44% of total revenues, increased 3% year over year to $507 million. However, this figure missed the estimated $548.5 million. Digital Operations services revenues, constituting 56% of total revenues, experienced a 5% year-over-year growth to $639 million, surpassing the projected $624.8 million.

Genpact reported adjusted income from operations totaling $203 million, signifying a 9% year-over-year increase. The adjusted operating income margin of 17.7% also grew by 70 basis points from the previous year.

As the year concluded, Genpact boasted cash and cash equivalents of $583.7 million, a significant increase from the previous quarter. Simultaneously, the company’s long-term debt decreased to $824.7 million, reflecting a steady financial position. The firm generated $192 million in cash from operating activities and returned $24.8 million to shareholders through dividends.

2024 Financial Projections

Looking ahead, Genpact expects revenues to range from $4.57 to $4.61 billion, slightly below the Zacks Consensus Estimate of $4.66 billion. Projected adjusted EPS is anticipated to be $3.00 to $3.03, also falling below the Zacks Consensus Estimate of $3.10. The adjusted income from operations margin is forecasted to be 17%.

Presently, Genpact retains a Zacks Rank #3 (Hold).

Comparative Earnings Reports

In comparison to other market players, Robert Half (RHI) reported better-than-expected fourth-quarter 2023 results with a marginal year-over-year decline. Aptiv (APTV) posted mixed results, beating the Zacks Consensus Estimate for earnings while missing on revenues. S&P Global (SPGI) also delivered mixed results, as its earnings fell short of the Zacks Consensus Estimate despite revenue beats.

These contrasting performances in the market highlight the complexity and dynamism of the industry, signifying the need for companies to continuously adapt and innovate to remain successful.

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For further details, please refer to the full earnings report and analysis:

• Genpact Limited (G) : Free Stock Analysis Report
• Robert Half Inc. (RHI) : Free Stock Analysis Report
• S&P Global Inc. (SPGI) : Free Stock Analysis Report
• Aptiv PLC (APTV) : Free Stock Analysis Report
• Read the full article on Zacks.com

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