Genpact's Earnings and Revenues Surpass Estimates in Q1

Genpact Limited G reported impressive first-quarter 2024 results, beating the Zacks Consensus Estimate for both earnings and revenues.

Quarterly EPS of 84 cents surpassed the consensus estimate by 5% and grew 15.1% year over year. Revenues of $1.21 billion beat the consensus mark by 0.5% and increased 7.4% from the year-ago quarter.

Genpact Limited Price, Consensus and EPS Surprise

Genpact Limited price-consensus-eps-surprise-chart | Genpact Limited Quote

The stock has rallied 54.6% over the past year, outperforming the 6.3% growth of the industry it belongs to.

Other Quarterly Details of G

Data-Tech-AI services revenues (representing 48% of total revenues) increased 11.1% year over year on a reported basis and 11.7% on a constant-currency basis to $582 million, surpassing our estimate of $575 million. Digital Operations services revenues of $633 million (52% of total revenues) increased 4.2% from the year-ago quarter’s actuals on a reported basis and 5.4% at cc, beating our estimate of $632.5 million.

Adjusted income from operations totaled $210 million and grew 15% on a year-over-year basis. The adjusted operating income margin of 17.3% stayed flat year over year.

Genpact exited the quarter with cash and cash equivalents of $561.6 million compared with $648.2 million reported at the end of the prior quarter. Long-term debt (less current portion) was $1.2 billion.

The company generated $40.4 million in cash from operating activities, while capital expenditure was $22 million. Genpact returned $29.8 million in dividends to shareholders and repurchased shares worth $63 million.

Q2 Guidance by G

For the second quarter of 2025, Genpact expects adjusted EPS to be in the range of 84 cents-$86 cents. The Zacks Consensus Estimate is pegged at 86 cents per share. Revenues are anticipated between $1.21 billion and $1.23 billion, below the Zacks Consensus Estimate.

For 2025, adjusted EPS is expected in the range of $3.41-$3.52, below the Zacks Consensus Estimate of $3.54. The company expects revenues between $4.9 billion and $5 billion, which is below the Zacks Consensus Estimate of $5.07 billion.

Currently, Genpact carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Earnings Snapshot

Fiserv, Inc. FI reported mixed first-quarter 2025 results. The company’s earnings beat the Zacks Consensus Estimate, while revenues missed the mark.

FI’s adjusted earnings per share of $2.14 beat the consensus mark by 2.9% and gained 13.8% year over year. Adjusted revenues of $4.8 billion lagged the consensus estimate by 1.6% but rose 5.5% on a year-over-year basis. (See the Zacks Earnings Calendar to stay ahead of market-making news.)

The Interpublic Group of Companies, Inc. IPG reported mixed first-quarter 2025 results. The company’s earnings topped the Zacks Consensus Estimate, while revenues missed the mark.

IPG’s adjusted earnings of 33 cents per share surpassed the Zacks Consensus Estimate by 10% but decreased 8.3% from the year-ago quarter. Revenues before billable expenses (net revenues) of $2 billion missed the consensus estimate by a slight margin and declined 20% year over year. Total revenues of $2.3 billion decreased 7.2% year over year but outpaced the Zacks Consensus Estimate of $2 billion.

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This article originally published on Zacks Investment Research (zacks.com).

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