Concentrix Full Year 2023 Earnings: EPS Misses Expectations
Concentrix (NASDAQ:CNXC) Full Year 2023 Results
Key Financial Results
Revenue: US$7.11b (up 13% from FY 2022).
Net income: US$307.9m (down 28% from FY 2022).
Profit margin: 4.3% (down from 6.8% in FY 2022). The decrease in margin was driven by higher expenses.
EPS: US$5.72 (down from US$8.34 in FY 2022).
All figures shown in the chart above are for the trailing 12 month (TTM) period
Concentrix EPS Misses Expectations
Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 13%.
In the last 12 months, the only revenue segment was Software & Programming contributing US$7.11b. Notably, cost of sales worth US$4.54b amounted to 64% of total revenue thereby underscoring the impact on earnings. The largest operating expense was General & Administrative costs, amounting to US$1.92b (84% of total expenses). Explore how CNXC's revenue and expenses shape its earnings.
Looking ahead, revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 6.4% growth forecast for the Professional Services industry in the US.
Performance of the American Professional Services industry.
The company's shares are down 9.5% from a week ago.
Risk Analysis
It's necessary to consider the ever-present spectre of investment risk. We've identified 3 warning signs with Concentrix (at least 1 which doesn't sit too well with us), and understanding them should be part of your investment process.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
