Concentrix Corp (CNXC) Aligns with EPS Projections and Reports Substantial Revenue Growth in Q1 2024
Revenue: $2.40 billion, a 46.8% increase year-over-year, aligning with high-end guidance.
Operating Income: Reported at $148.4 million, a decrease of 4.9% from the previous year.
Net Income: $52.1 million, falling short by 40.7% compared to the prior year's $87.9 million.
Earnings Per Share (EPS): Non-GAAP diluted EPS at $2.57, slightly below analyst estimates of $2.58.
Adjusted EBITDA: Rose to $384.3 million, up 50.2% year-over-year, with a margin improvement to 16.0%.
Share Repurchase: Committed to repurchasing $100 million of shares over the remainder of 2024.
On March 26, 2024, Concentrix Corp (NASDAQ:CNXC), a leading global provider of customer experience (CX) solutions and technology, released its 8-K filing, reporting first-quarter financial results for the period ended February 29, 2024. The company, known for its comprehensive services across various industry verticals including technology, retail, and healthcare, operates on a global scale with a significant presence in the Philippines, the United States, India, and other regions.
Concentrix Corp (NASDAQ:CNXC) reported a substantial year-over-year revenue increase of 46.8%, reaching $2.40 billion and meeting the high end of its guidance range. This growth was partially attributed to a strong pipeline for AI and technology-led solutions. However, operating income saw a slight decline of 4.9% to $148.4 million, and net income significantly decreased by 40.7% to $52.1 million. The non-GAAP diluted EPS was $2.57, just below the estimated $2.58.
The company's adjusted EBITDA improved notably, with a 50.2% increase to $384.3 million, and the adjusted EBITDA margin expanded by 40 basis points to 16.0%. Despite a challenging quarter in terms of net income and EPS, Concentrix Corp (NASDAQ:CNXC) confirmed its full-year business outlook for revenue, profit, and cash flow, showcasing confidence in its operational strategy and market position.
President and CEO Chris Caldwell commented on the results:
"We are seeing a strong pipeline for our AI and technology-led solutions. This allowed us to achieve the high end of our revenue guidance and our profit target for the quarter. Reflecting our confidence in our outlook for 2024, we are committed to repurchasing $100 million of our shares over the final three quarters of 2024 while maintaining our dividend and our debt reduction commitments."
Concentrix Corp (NASDAQ:CNXC) also continued its shareholder return program, having repurchased 0.2 million shares at a cost of $22.0 million. Looking ahead, the company expects to repurchase an additional $100 million of common stock over the final three quarters of fiscal 2024.
For the second quarter of fiscal 2024, Concentrix Corp (NASDAQ:CNXC) anticipates reported revenue to be in the range of $2.325 billion to $2.372 billion, with a non-GAAP EPS expected to be between $2.55 and $2.70. The full-year fiscal 2024 outlook projects revenue to be in the range of $9.510 billion to $9.700 billion, with non-GAAP EPS between $11.69 and $12.50.
Despite the mixed financial results, Concentrix Corp (NASDAQ:CNXC) remains well-positioned to continue its growth trajectory, backed by a robust service offering and a global operational footprint. The company's commitment to innovation and customer engagement, alongside strategic financial management, positions it as a resilient competitor in the dynamic customer experience industry.
Investors and stakeholders can expect a detailed discussion of the first quarter fiscal 2024 results in the upcoming conference call and can access more information on the Investor Relations section of Concentrix Corp's website.
For detailed financial tables and further information on the non-GAAP measures, readers are encouraged to review the full earnings release and accompanying financial statements.
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Explore the complete 8-K earnings release (here) from Concentrix Corp for further details.
This article first appeared on GuruFocus.
