Concentrix shares tumble 6% as steering falls in need of estimates

NEWARK, Calif. – Concentrix Company (NASDAQ:CNXC) reported fourth quarter earnings that beat analyst expectations, however shares fell sharply in after-hours buying and selling as the corporate’s steering got here in beneath estimates.

The know-how and providers supplier posted adjusted earnings per share of $3.26, surpassing the consensus forecast of $3.08. Income for the quarter rose 9.7% year-over-year to $2.45 billion, barely forward of analyst projections of $2.44 billion.

Nevertheless, Concentrix’s outlook for the primary quarter and full yr 2025 disenchanted buyers. The corporate expects Q1 EPS between $2.49 and $2.64, beneath the $2.85 consensus. Q1 income steering of $2.355-$2.37 billion additionally fell in need of the $2.409 billion analysts have been anticipating.

For fiscal 2025, Concentrix forecasts EPS of $11.18-$11.77, in comparison with the $11.97 consensus estimate. Full-year income is projected at $9.47-$9.61 billion, beneath expectations of $9.726 billion.

The weaker-than-expected steering despatched shares tumbling 6.47% in after-hours buying and selling following the earnings launch.

“We proceed to realize robust outcomes throughout key areas of development in our enterprise whereas repurchasing shares, lowering our leverage and supporting our dividend,” mentioned Chris Caldwell, Concentrix President and CEO. “Strategically, we proceed to execute our plan for development and market enlargement whereas delivering worth to shareholders.”

Concentrix famous it has seen its investments in its GenAI product suite generate greater than a dozen wins solely weeks after launch. The corporate additionally mentioned it continues to safe massive, transformative shopper wins.

For the fourth quarter, income from the know-how and client electronics section grew 4% YoY to $685.8 million. The retail, journey and e-commerce section noticed 20% development to $616.3 million.

The corporate returned roughly $220 million to shareholders by means of dividends and share repurchases in fiscal 2024 whereas lowering debt by about $209 million. Concentrix’s board additionally elevated its share repurchase authorization to $600 million.

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