Stock Monitor: Formula Systems (1985) Post Earnings Reporting
LONDON, UK / ACCESSWIRE / June 19, 2018 / If you want access to our free earnings report on Globant S.A. (NYSE: GLOB), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=GLOB. The Company reported its first quarter fiscal 2018 operating and financial results on May 10, 2018. The information technology services provider outperformed top- and bottom-line expectations. Additionally, the Company provided guidance for the upcoming quarter and fiscal year. Register today and get access to over 1,000 Free Research Reports by joining our site below:
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Earnings Highlights and Summary
For the three months ended March 31, 2018, Globant's revenues increased to a record $119.7 million, representing a growth of 34.9% compared to $88.7 million in Q1 2017. This solid growth in revenues was driven by both the Company's top 10 and non-top 10 accounts, which increased by 37.3% and 33.0%, respectively, compared to Q1 2017. Globant's revenue numbers beat analysts' estimates of $114.1 million.
During Q1 2018, Globant's non-IFRS adjusted gross profit was $46.8 million and its non-IFRS adjusted gross profit margin was 39.1% compared to $34.6 million and 39.0%, respectively, in Q1 2017.
Globant reported a net income of $10.3 million, or $0.28 per diluted share, in Q1 2018 compared to $9.0 million, or $0.25 per diluted share, in Q1 2017. The Company's non-IFRS adjusted net income was $13.9 million, or $0.38 per share, in the reported quarter compared to $8.9 million, or $0.25 per diluted share, in the year earlier same quarter. Globant's earnings exceeded Wall Street's estimates of $0.34 per share.
Globant completed Q1 2018 with 6,940 Globers; 6,462 of whom were technology, design, and innovation professionals. For the reported quarter, the geographic revenue breakdown was 78.6% from North America (top country: US); 13.8% from Latin America and others (top country: Argentina); and 7.6% from Europe (top country: Spain). During Q1 2018, 85.5% of Globant's total revenues was denominated in US dollars, and the remaining 14.5% was denominated in other currencies, including Euros, GB Pounds, and other Latin American currencies.
During the last twelve months ended March 31, 2018, Globant served 348 customers; 89 of which accounted for more than $1 million of Globant's total revenues. Globant's top customer, top five customers, and top ten customers represented 11.1%, 31.3%, and 44.5%, respectively, of the total revenues for the reported quarter.
As of March 31, 2018, Globant's cash and cash equivalents and investments amounted to $45.0 million; while its current assets amounted to $156.3 million, accounting for 43.3% of total assets for the same period.
For the second quarter of the fiscal year 2018, Globant's revenues are estimated to be between $124 million and $126 million, implying a y-o-y growth of 25.5% at the midpoint of the range. For the upcoming quarter, the Company's non-IFRS adjusted earnings per share are estimated to be in the range of $0.36 - $0.40.
For the full fiscal year 2018, Globant is projecting revenues to be in the band of $502 million - $510 million, implying a y-o-y revenue growth of 22.4% at the midpoint of the range. For FY18, the Company's non-IFRS adjusted earnings per share are estimated to be in the band of $1.56 - $1.64.
Stock Performance Snapshot
June 18, 2018 - At Monday's closing bell, Globant's stock rose 1.99%, ending the trading session at $57.00.
Volume traded for the day: 335.67 thousand shares, which was above the 3-month average volume of 341.22 thousand shares.
Stock performance in the last month – up 12.18%; previous three-month period – up 9.57%; past twelve-month period – up 36.92%; and year-to-date – up 22.69%
After yesterday's close, Globant's market cap was at $2.00 billion.
Price to Earnings (P/E) ratio was at 64.85.
The stock is part of the Technology sector, categorized under the Information Technology Services industry. This sector was up 0.2% at the end of the session.
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