Business transformation services company Genpact (NYSE:G) will be announcing earnings results this Thursday after market hours. Here’s what to look for.
Genpact beat analysts’ revenue expectations last quarter, reporting revenues of $1.30 billion, up 6.7% year on year. It was a mixed quarter for the company, with a beat of analysts’ EPS estimates but revenue guidance for next quarter slightly missing analysts’ expectations.
Is Genpact a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Genpact’s revenue to grow 6.3% year on year, in line with the 6.6% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Genpact has a history of exceeding Wall Street’s expectations.
Looking at Genpact’s peers in the business process outsourcing & consulting segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Huron delivered year-on-year revenue growth of 15.4%, beating analysts’ expectations by 3.2%, and CBIZ reported flat revenue, falling short of estimates by 2.3%. Huron traded up 40.4% following the results while CBIZ was also up 18.3%.
Read our full analysis of Huron’s results here and CBIZ’s results here.
There has been positive sentiment among investors in the business process outsourcing & consulting segment, with share prices up 7.8% on average over the last month. Genpact is up 23.6% during the same time and is heading into earnings with an average analyst price target of $39.27 (compared to the current share price of $35.78).
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