Concentrix Corporation Reports Third Quarter Fiscal 2024 Financial Results
Intellectia.AI2024-09-26
Concentrix Corporation Reports Third Quarter Fiscal 2024 Financial Results
Concentrix Corporation (NASDAQ: CNXC), a global provider of technology and services, announced its financial results for the fiscal third quarter ending August 31, 2024.
Key Financial Metrics:
| Metric | Q3 FY2024 | Q3 FY2023 | Year-over-Year Change |
|---|---|---|---|
| Revenue | $2,387.4M | $1,632.8M | +46.2% |
| Diluted EPS | $0.25 | $1.49 | -83.2% |
| Non-GAAP Diluted EPS | $2.87 | $2.76 | +4.0% |
Concentrix saw significant revenue growth of 46.2% compared to the same period last year, driven partially by its integration with Webhelp. However, diluted EPS declined sharply due to increased amortization and integration expenses. Non-GAAP diluted EPS increased by 4% year-over-year, illustrating stronger underlying earnings performance after adjustments.
Key Developments and Operational Highlights:
- Launched iX Hello™, a generative AI-powered productivity solution.
- Returned $60 million to shareholders through share repurchases and dividends.
- Announced a 10% increase in its quarterly dividend.
Management Commentary:
Chris Caldwell, President and CEO, emphasized the company's robust revenue growth and successful integration with Webhelp. Caldwell highlighted the rapid market introduction of iX Hello, which he believes strengthens Concentrix's competitive position in intelligent experience solutions.
Dividends and Share Repurchase Program:
- Paid a $0.3025 per share quarterly dividend on August 6, 2024.
- Announced a 10% increase with a new dividend of $0.33275 per share payable on November 5, 2024.
- Repurchased 0.6 million shares for $39.1 million, with $188 million of repurchase authorization remaining.
Forward Guidance:
For the fourth quarter, Concentrix expects revenue between $2.42 billion and $2.47 billion alongside a non-GAAP EPS range of $2.90 to $3.16. For the full fiscal year 2024, the company projects revenue between $9.591 billion and $9.641 billion, with a non-GAAP EPS outlook of $11.05 to $11.31.
Stock Price Movement:
Following the earnings announcement, Concentrix's stock reflected a decrease of approximately 7.02%, indicating market reactions to the quarterly results and guidance.
Overall, Concentrix's third-quarter results showcase solid revenue growth amidst strategic integrations while ongoing amortization and integration costs weigh on earnings. The company's future trajectory appears optimistic with continued investment in AI and shareholder returns.
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