CNXC Earnings Prediction
The chart below shows how CNXC performed 10 days before and after its earnings report, based on data from the past quarters. Typically, CNXC sees a -0.38% change in stock price 10 days leading up to the earnings, and a -0.33% change 10 days following the report. On the earnings day itself, the stock moves by +0.72%. This data can give you a slight idea of what to expect for the next quarter's release.
CNXC Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
2.45B
9.74%
2.54%
Gross Margin
31.07%
-4.55%
-0.80%
Operating Margin
8.34%
-15.59%
5.17%
Net Margin
4.72%
51.77%
574.29%
EPS
1.72
57.80%
588.00%
No Data Available
CNXC Earnings Analysis
Concentrix Corp Corporation (CNXC.O) Earnings Conference Call
Positive
Q4 Revenue Performance: Revenue for Q4 reached approximately $2.45 billion, growing 1.5% on a pro forma constant currency basis, at the high-end of guidance.
Stable Profitability Growth: Non-GAAP operating income for the full year 2024 was $1.32 billion, slightly up from the prior year, indicating stable profitability.
Strong Cash Generation: Adjusted free cash flow for 2024 was $475 million, demonstrating strong cash generation capabilities.
Capital Return to Shareholders: Share repurchases totaled $136 million, representing 2.2 million shares, alongside $84 million paid in dividends, reflecting a commitment to returning capital to shareholders.
Adjusted Free Cash Flow Growth: The company expects adjusted free cash flow to grow to between $625 million and $650 million in 2025, driven by synergy savings and lower integration costs.
Negative
Q4 Revenue Growth Slowdown: Revenue growth for Q4 was only 1.5% on a pro forma constant currency basis, indicating a slowdown compared to previous quarters and suggesting potential challenges in sustaining growth.
Operating Margin Decline: Non-GAAP operating margin decreased to 14.2% in Q4 2024 from the previous year, primarily due to increased technology spending and upfront investments, reflecting pressure on profitability.
Communications Revenue Decline: Revenue from communications and media clients decreased by 1% on a pro forma basis, highlighting ongoing challenges in this segment and potential loss of business from key clients.
Fiscal 2025 Revenue Outlook: The guidance for fiscal 2025 indicates constant currency revenue growth of only 0% to 1.5%, suggesting a bleak outlook and potential stagnation in revenue generation.
Transaction Complexity Reduction: The expectation to further reduce low complexity transactions from 7% to 5% of the business in 2025 may lead to short-term revenue headwinds as the company transitions away from these lower-margin services.
