The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Genpact beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share expanded significantly.
Gross margins increased, operating margins dropped, net margins expanded.
Genpact recorded revenue of $442.7 million. The nine analysts polled by S&P Capital IQ expected to see revenue of $436.7 million on the same basis. GAAP reported sales were 30% higher than the prior-year quarter's $341.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.27. The eight earnings estimates compiled by S&P Capital IQ anticipated $0.21 per share. GAAP EPS of $0.27 for Q4 were 35% higher than the prior-year quarter's $0.20 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 39.4%, 260 basis points better than the prior-year quarter. Operating margin was 11.4%, 710 basis points worse than the prior-year quarter. Net margin was 13.8%, 30 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $429.1 million. On the bottom line, the average EPS estimate is $0.17.
Next year's average estimate for revenue is $1.87 billion. The average EPS estimate is $0.86.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 114 members out of 139 rating the stock outperform, and 25 members rating it underperform. Among 35 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 31 give Genpact a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Genpact is outperform, with an average price target of $19.00.
Is Genpact playing the right part in the new technology revolution? Computers, mobile devices, and related services are creating huge amounts of valuable data, but only for companies that can crunch the numbers and make sense of it. Meet the leader in this field in "The Only Stock You Need To Profit From the NEW Technology Revolution." Click here for instant access to this free report.
- Add Genpact to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
More from The Motley Fool
Why Genpact Limited Shares Plunged
Is this meaningful or just another movement?
Will Genpact Beat These Analyst Estimates?
Seniors, Take Some Risk! 4 Stocks You Can Buy Today
Investing in your later years doesn't only have to be about capital preservation and income.