The chart below shows how WNS performed 10 days before and after its earnings report, based on data from the past quarters. Typically, WNS sees a +13.26% change in stock price 10 days leading up to the earnings, and a +8.62% change 10 days following the report. On the earnings day itself, the stock moves by -11.09%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Sequential Profitability Growth: WNS reported an adjusted net income of $51.5 million for Q2, compared to $44 million in the previous quarter, reflecting a strong sequential growth in profitability.
Earnings Per Share Increase: The company achieved an adjusted diluted earnings per share of $1.13, up from $1.10 in the same quarter last year, indicating improved earnings performance year-over-year.
Strong Cash Flow Generation: WNS generated $43.6 million in cash from operating activities during the second quarter, showcasing strong cash flow generation capabilities.
Share Buyback Commitment: The company repurchased 1,156,000 shares at an average price of $56.61, demonstrating a commitment to returning value to shareholders through share buybacks.
Analytics Practice Growth: WNS's analytics practice has grown at a 20% CAGR over the past three years, highlighting the company's successful investment in data and analytics capabilities.
Negative
Revenue Decline Analysis: Net revenue decreased by 4.4% year-over-year to $310.7 million, with a 5.2% decline on a constant currency basis, indicating ongoing revenue challenges.
Operating Margin Decline: Adjusted operating margin fell to 18.6%, down from 21.5% a year ago, primarily due to lower revenue and increased SG&A expenses, reflecting cost management issues.
Lowered Revenue Guidance: The company has lowered its full-year guidance, anticipating continued reductions in online travel volumes and slower conversion of large deals, which could impact future revenue growth.
Revenue Decline Factors: The loss of a large healthcare client contributed to revenue declines, with ongoing weakness in discretionary project-based revenues further exacerbating the situation.
High Attrition Rate: Attrition rate remained high at 34%, unchanged from the previous quarter and up from 30% a year ago, indicating potential challenges in talent retention and operational stability.
WNS (Holdings) Limited (WNS) Q2 2025 Earnings Call Transcript
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