WNS Earnings Prediction
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 -6.63% change in stock price 10 days leading up to the earnings, and a +3.63% change 10 days following the report. On the earnings day itself, the stock moves by +5.77%. This data can give you a slight idea of what to expect for the next quarter's release.
WNS Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
326.20M
6.28%
-2.30%
Gross Margin
32.41%
-2.85%
-3.31%
Operating Margin
12.23%
-14.83%
-12.58%
Net Margin
12.73%
12.65%
-28.48%
EPS
0.85
23.19%
-29.17%
No Data Available
WNS Earnings Analysis
WNS (Holdings) Ltd Corporation (WNS.N) Earnings Conference Call
Positive
Q3 Net Revenue Increase: Net revenue for Q3 reached $319.1 million, a 1% year-over-year increase and a 2.7% sequential increase, driven by broad-based demand across verticals and services.
Operating Margin Improvement: Adjusted operating margin improved sequentially to 19.3%, reflecting operating leverage on higher volumes and favorable currency movements, despite a slight year-over-year decrease.
Customer Growth and Engagement: WNS added 7 new logos and expanded 52 existing client relationships in Q3, indicating strong customer growth and engagement.
Strong Cash Flow Generation: The company generated $88.7 million in cash from operating activities in Q3, showcasing robust cash flow generation capabilities.
GenAI Product Development Advances: WNS has created over 30 GenAI use cases and built 13 unique digital assets, with 13 clients currently using GenAI solutions in production, highlighting significant advancements in product development.
Negative
Operating Margin Decline: Adjusted operating margin decreased to 19.3% in Q3 from 19.7% in the same quarter last year, attributed to lower employee utilization and increased infrastructure investments.
Decline in Adjusted Net Income: Adjusted net income fell to $47 million in Q3, down from $58.5 million in the same quarter of fiscal 2024, reflecting a decline in profitability.
Tax Rate Increase Analysis: The effective tax rate increased to 22.8% in Q3 compared to 6.7% in the previous quarter, primarily due to the absence of non-recurring tax benefits that were present in prior quarters.
Revenue Decline Forecast: The company expects full-year net revenue to decline by 2% to 1% year-over-year, indicating ongoing challenges in revenue generation.
Rising Attrition Rate: Attrition rate rose to 32% in Q3, up from 29% in the same quarter last year, suggesting potential issues in employee retention and workforce stability.
WNS FAQs
How does WNS typically perform around its earnings report dates?
Is Earnings call transcript: WNS Holdings Q3 2024 sees steady revenue, EPS meets forecast positive or negative?
How can historical earnings data help predict future stock performance?
WNS Earning Call Sentiment
Earnings call transcript: WNS Holdings Q3 2024 sees steady revenue, EPS meets forecast
WNS.N
-3.81%Positive
The earnings call presents mixed signals: modest revenue growth and a positive large deal pipeline are offset by high attrition, margin pressures, and dependency on a few large clients. The Q&A section reveals uncertainties in deal signings and travel volumes, yet management remains optimistic about future margins. Given the company's mid-sized market cap, these factors suggest a neutral short-term stock price movement, with no strong catalysts for significant change.
