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.
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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.