Core Insights - Zacks Premium provides tools for investors to enhance their stock market engagement and confidence, including daily updates, research reports, and stock screens [1][2] Zacks Style Scores - Zacks Style Scores rate stocks based on value, growth, and momentum, serving as complementary indicators to the Zacks Rank, helping investors identify securities likely to outperform the market in the short term [3][4] - Stocks are rated from A to F, with A indicating the highest potential for outperformance [4] Value Score - The Value Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, and Price/Sales, aiming to find attractive investment opportunities [4] Growth Score - The Growth Score emphasizes a company's financial health and future growth potential, analyzing projected and historical earnings, sales, and cash flow [5] Momentum Score - The Momentum Score identifies trends in stock prices and earnings outlooks, helping investors time their entry into positions based on recent price changes [6] VGM Score - The VGM Score combines the three Style Scores, providing a comprehensive rating that highlights stocks with strong value, growth, and momentum characteristics [7] Zacks Rank - The Zacks Rank is a proprietary model based on earnings estimate revisions, with 1 (Strong Buy) stocks historically achieving an average annual return of +25.41%, significantly outperforming the S&P 500 [8][9] - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B to maximize potential returns [10] Company Spotlight: Genpact - Genpact, based in Hamilton, Bermuda, specializes in managing business processes globally, leveraging technology and analytical capabilities [12] - Currently rated 3 (Hold) by Zacks, Genpact has a VGM Score of A and a Growth Style Score of A, with a projected year-over-year earnings growth of 6.7% for the current fiscal year [12][13] - Recent upward revisions in earnings estimates and a solid earnings surprise average of 6.5% position Genpact as a strong candidate for growth investors [13]

Core Insights - Genpact has been awarded "Sustainable Corporate of the Year" for the third consecutive year by Frost & Sullivan, highlighting its commitment to sustainability in the services sector [1][2]. Group 1: Sustainability Initiatives - Genpact's sustainability initiatives include innovative solutions implemented at its sites in Gurugram, Noida, Jaipur, and Hyderabad, which received individual leadership recognition [2]. - The company has deployed IoT-based sustainability solutions, an in-house Sustainability Data Collection tool, and an AI-enabled ESG reporting system [2][4]. - Advanced water recycling methods, electric vehicles (EVs) and charging infrastructure, and solar photovoltaic systems are part of Genpact's efforts to reduce energy consumption and emissions [7]. Group 2: Leadership and Vision - Genpact emphasizes that technology is essential for sustainable business growth and a sustainable future, leveraging AI and advanced technology to drive innovation [3]. - The Sustainability 4.0 Awards recognize organizations that integrate sustainability principles into their business strategies, with Genpact being a notable participant [3]. - Frost & Sullivan has supported Genpact's sustainability journey through structured assessments, commending its efforts in embedding sustainable practices into operations [4]. Group 3: Company Overview - Genpact is a global professional services and solutions firm with over 125,000 employees across more than 30 countries, focusing on creating lasting value for clients [5]. - The company serves leading enterprises, including those in the Fortune Global 500, with expertise in digital operations, data, technology, and AI [5].

Core Insights - Genpact will host an Investor Day on June 26, 2025, in New York City, focusing on its advancements in Data, AI, and domain-driven solutions [1][2] Group 1: Event Details - The event will be led by Balkrishan "BK" Kalra, Genpact's President and CEO, along with the senior leadership team [2] - A live webcast will be available on the Genpact Investor Relations website, with a replay provided after the event [3] Group 2: Company Overview - Genpact is a global professional services and solutions firm with over 125,000 employees across more than 30 countries [4] - The company aims to create lasting value for clients, serving leading enterprises including those in the Fortune Global 500 [4]

Core Insights - Genpact Limited reported strong fourth-quarter 2024 results, exceeding Zacks Consensus Estimates for both earnings and revenue [1][5] - The stock has appreciated by 11% since the results announcement on February 6, reflecting positive market sentiment towards the company's performance and guidance [2] Financial Performance - For Q1 2025, Genpact anticipates adjusted EPS between $0.79 and $0.80, surpassing the Zacks Consensus Estimate of $0.77 [3] - Expected revenues for Q1 2025 are projected to be between $1.202 billion and $1.213 billion, aligning with the current consensus estimate [3] - For the full year 2025, adjusted EPS is forecasted to be in the range of $3.52 to $3.59, with the midpoint exceeding the current consensus of $3.49 [4] - Revenue expectations for 2025 are between $5.029 billion and $5.125 billion, with the midpoint also higher than the consensus estimate of $5.07 billion [4] Revenue Breakdown - Quarterly EPS was reported at $0.91, which is 5.8% above consensus and represents an 11% year-over-year growth [5] - Total revenues reached $1.25 billion, beating the consensus by 1.7% and increasing 8.9% year-over-year [5] - Data-Tech-AI services revenues, accounting for 48% of total revenues, grew 12% year-over-year to $595 million, exceeding estimates [6] - Digital Operations services revenues, making up 52% of total revenues, increased 6.4% year-over-year to $654 million, also surpassing estimates [6] Operational Metrics - Adjusted income from operations was $221 million, reflecting a 9% year-over-year increase, with an operating income margin of 17.7% remaining stable [7] - The company ended the quarter with cash and cash equivalents of $648.2 million, down from $1 billion in the previous quarter [7] - Long-term debt remained flat at $1.2 billion compared to the prior quarter [7] Cash Flow and Shareholder Returns - Genpact generated $203 million in cash from operating activities, with capital expenditures of $19.7 million [8] - The company returned $26.7 million in dividends to shareholders and repurchased shares worth $85 million [8] Guidance - For Q1 2025, gross margin and adjusted income from operating margin are expected to be around 35% and 16.5%, respectively [9] - For the full year 2025, gross margin and adjusted income from operating margin are anticipated to be around 36% and 17.3%, respectively [9]

Core Insights - Zacks Premium provides tools for investors to enhance their stock market engagement and confidence, including daily updates, research reports, and stock screens [1][2] Zacks Style Scores - Zacks Style Scores are indicators that assist investors in selecting stocks likely to outperform the market within 30 days, rated from A to F based on value, growth, and momentum characteristics [3] - The Value Score focuses on identifying undervalued stocks using financial ratios like P/E and Price/Sales [4] - The Growth Score emphasizes a company's financial health and future growth potential, analyzing projected and historical earnings and cash flow [5] - The Momentum Score identifies optimal times to invest based on price trends and earnings estimate changes [6] - The VGM Score combines the three Style Scores to highlight stocks with attractive value, growth forecasts, and momentum [7] Zacks Rank and Style Scores Integration - The Zacks Rank utilizes earnings estimate revisions to guide investors in building successful portfolios, with 1 (Strong Buy) stocks achieving an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [8][9] - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal success [10] - Stocks with lower Zacks Ranks, even with high Style Scores, may still face downward price trends due to negative earnings outlooks [11] Company Spotlight: Genpact - Genpact, based in Hamilton, Bermuda, specializes in managing business processes globally, leveraging technology and analytical capabilities [12] - Currently rated 3 (Hold) with a VGM Score of A, Genpact has a Momentum Style Score of A and has seen a 22.9% increase in shares over the past four weeks [13] - Recent upward revisions in earnings estimates for fiscal 2025 and a Zacks Consensus Estimate increase to $3.49 per share, along with a 6.5% average earnings surprise, position Genpact as a noteworthy investment opportunity [13]

Group 1 - Zacks Premium offers various tools for investors, including daily updates on Zacks Rank and Industry Rank, access to the Zacks 1 Rank List, Equity Research reports, and Premium stock screens to enhance investment confidence [1][2] - The Zacks Style Scores are complementary indicators that rate stocks based on value, growth, and momentum, helping investors identify stocks likely to outperform the market in the next 30 days [2][3] Group 2 - Stocks are rated with an alphabetic system from A to F based on their value, growth, and momentum qualities, with A being the highest score indicating a better chance of outperforming [3] - The Value Score identifies attractive and discounted stocks using ratios like P/E, PEG, and Price/Sales [3][4] - The Growth Score focuses on a company's financial strength and future outlook, analyzing projected and historic earnings, sales, and cash flow [4] - The Momentum Score helps investors capitalize on price trends, using factors like one-week price change and monthly earnings estimate changes [5] - The VGM Score combines all three Style Scores, providing a comprehensive indicator for investors [6] Group 3 - The Zacks Rank utilizes earnings estimate revisions to assist investors in building successful portfolios, with 1 (Strong Buy) stocks yielding an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [7][8] - Investors are encouraged to focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for the highest probability of success [10][11] Group 4 - Genpact, based in Hamilton, Bermuda, manages business processes globally, combining process expertise and technology to offer diverse services [12] - Genpact holds a Zacks Rank of 3 (Hold) with a VGM Score of A, indicating potential for growth [12] - The company has a Growth Style Score of A, with a forecasted year-over-year earnings growth of 5.2% for the current fiscal year, and an upward revision in earnings estimates [13]

Financial Data and Key Metrics Changes - Revenue in Q4 reached $1.25 billion, up 9% year over year [7] - Operating cash flow grew 25%, and adjusted diluted EPS grew 10% year over year [10][32] - Annual revenue grew 6.5% to $4.77 billion, with adjusted diluted EPS at $3.28, a 10% increase [33][37] Business Line Data and Key Metrics Changes - Data, tech, and AI revenue reached $595 million, a 12% increase, contributing 48% of total quarterly revenue [28] - Digital operations revenue grew 6% to $654 million, representing 52% of total revenue [29] - Revenue from priority accounts grew approximately 9% year over year, contributing to 64% of fourth-quarter revenue [30] Market Data and Key Metrics Changes - Consumer and healthcare revenue increased 11%, high-tech and manufacturing increased 9%, and financial services increased 6% [30] - Annual revenue from outcome and consumption-based deals comprised 20% of total revenue for the year [35] Company Strategy and Development Direction - The company is focusing on innovation, particularly in AI and data technology, with the launch of the AI value studio and the Genpact GigaFactory [11][13] - Partnerships in 2024 saw a 50% year-over-year increase, indicating a strategic shift towards collaboration with technology partners [15] - The company aims to expand its footprint in the startup ecosystem, focusing on next-generation AI orchestration [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the momentum entering 2025, setting full-year revenue guidance at 6.5% growth [23] - The company anticipates gross margin and adjusted operating income margins of 36% and 17.3% respectively, with EPS growth of 9% [24] - Management highlighted the importance of moving beyond generic AI to domain-specific intelligence tailored to industry needs [11] Other Important Information - The company ended 2024 with $648 million in cash and cash equivalents, up from $584 million in the previous year [38] - A total of $361 million was returned to shareholders in 2024 through share repurchases and dividends [39] Q&A Session Summary Question: Guidance on Data Tech AI and digital operations - Management indicated that approximately 75% of the business is annuitized, providing good visibility, while the remaining 25% is less predictable [48] Question: Increase in contract sizes related to Gen AI solutions - Management noted that implementing Gen AI solutions has led to follow-on conversations and contracts, enhancing the total addressable market [52] Question: Hiring pace associated with new solutions - Management stated that while there won't be massive shifts quarter over quarter, there is a need for more data technology skills and retraining of current staff [58] Question: Balance between horizontal and domain-specific solutions - Management confirmed a combination of both horizontal and vertical domain-specific solutions is being pursued [61] Question: Content moderation and AI's role - Management clarified that content moderation represents less than 10% of revenue and does not foresee significant threats from policy changes [66] Question: Talent acquisition for technical skills - Management emphasized the need for technical talent in data technology and AI, highlighting the importance of domain expertise [90] Question: M&A strategy - Management stated that M&A opportunities are evaluated through a disciplined approach to enhance capabilities when organic growth is insufficient [94] Question: Generative AI funding sources - Management observed that spending on generative AI solutions has largely been a shift of dollars rather than new incremental spending [100]

Group 1 - Genpact reported quarterly earnings of $0.91 per share, exceeding the Zacks Consensus Estimate of $0.86 per share, and up from $0.82 per share a year ago, representing an earnings surprise of 5.81% [1] - The company posted revenues of $1.25 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 1.70%, and an increase from $1.15 billion year-over-year [2] - Genpact has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] Group 2 - The stock has gained approximately 15% since the beginning of the year, significantly outperforming the S&P 500's gain of 3.1% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the upcoming quarter is $0.77 on revenues of $1.2 billion, and for the current fiscal year, it is $3.45 on revenues of $5.06 billion [7] Group 3 - The Outsourcing industry, to which Genpact belongs, is currently ranked in the top 34% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5] - The current estimate revisions trend for Genpact is mixed, resulting in a Zacks Rank 3 (Hold), suggesting the stock is expected to perform in line with the market in the near future [6]

Genpact (G) Q4 2024 Earnings Call February 06, 2025 05:00 PM ET Company Participants Krista Bessinger - SVP, Investor RelationsBalkrishan Kalra - CEO, President & DirectorMichael Weiner - Senior VP & CFOPuneet Jain - Associate - Equity ResearchBryan Bergin - Managing DirectorBradley Clark - Vice President Conference Call Participants Maggie Nolan - Research Analyst - Technology, Media & CommunicationsSean Kennedy - Payments & IT Services Equity Research AnalystSurinder Thind - Senior VP & Equity Analyst Ope ...

Financial Performance - 2024 net revenues were $4.77 billion, up 6.5% year-over-year, and 6.7% on a constant currency basis[5] - Data-Tech-AI net revenues were $2.23 billion, up 6.9% year-over-year, representing 47% of total revenue[5] - Digital Operations net revenues were $2.53 billion, up 6.1% year-over-year, representing 53% of total revenue[5] - Total net revenues for the year ended December 31, 2023, increased to $4,476,888, representing a growth of 2.4% compared to $4,371,172 in 2022[22] - Net income for the year ended December 31, 2023, was $631,255, a significant increase of 78.5% compared to $353,404 in 2022[22] - Earnings per common share for the year ended December 31, 2023, rose to $3.46, compared to $1.92 in 2022, indicating strong profitability growth[22] - The company expects net income for 2024 to be $513,670, a decrease of 18.6% compared to 2023[24] Earnings and EPS - Adjusted diluted EPS was $3.28, up 10% year-over-year, while diluted EPS was $2.85, down 16% year-over-year[9] - Adjusted diluted EPS for 2025 is expected to be in the range of $3.52 to $3.59[10] - Diluted EPS for Q4 2023 was $1.59, with an adjusted diluted EPS of $0.82, indicating a decrease from the previous year's $3.41 and $2.98[36] - For the year ending December 31, 2025, the estimated diluted EPS is projected to be between $3.04 and $3.11, with an adjusted diluted EPS forecasted between $3.52 and $3.59[40] Operational Efficiency - Cash generated from operations was $615 million, up 25% year-over-year[9] - Operating income for the year ended December 31, 2023, was $630,857, up from $502,151 in 2022, showing operational efficiency[22] - Adjusted income from operations for 2023 was $762,938, with an adjusted income from operations margin of 17.0%[33] - The adjusted income from operations for the year 2024 is expected to increase to $813,936,000, up from $762,938,000 in 2023[34] - Income from operations for Q4 2023 was $162,732,000, with an adjusted income from operations of $202,992,000, reflecting a margin of 14.2% and 17.7% respectively[34] Cash Flow and Liquidity - Total current liabilities decreased from $1,317,932 in 2023 to $963,739 in 2024, indicating improved liquidity[18] - Net cash provided by operating activities for 2023 was $490,812, compared to $443,670 in 2022, reflecting a growth of 10.4%[24] - Cash and cash equivalents increased from $583,670 as of December 31, 2023, to $648,246 as of December 31, 2024, enhancing the company's cash position[18] - Cash paid for interest in 2023 was $47,989, down from $51,147 in 2022, a decrease of 6.5%[24] Future Projections - For 2025, net revenues are projected to be in the range of $5.029 billion to $5.125 billion, representing year-over-year growth of approximately 5.5% to 7.5%[10] - Gross margin for 2025 is projected to be approximately 36.0%[10] - The company expects an adjusted income from operations margin of 17.3% for the year ending December 31, 2025, with a net income margin of 10.7%[37] - The company anticipates a net income margin of 10.1% for the quarter ending March 31, 2025[41] - The adjusted income from operations margin for the quarter ending March 31, 2025, is expected to be 16.5%[42] Dividends and Investments - The company declared a quarterly cash dividend of $0.17 per common share, an 11% increase[7] - The company plans to invest $55,421 in property, plant, and equipment in 2024, up from $50,614 in 2023[24] - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[20] Stock-Based Compensation - Stock-based compensation expense for 2023 was $88,576, an increase from $77,373 in 2022[24] - The company reported stock-based compensation expenses of $24,726,000 for Q4 2023, which is projected to decrease to $19,107,000 in Q4 2024[34] - The estimated stock-based compensation expense for the year ending December 31, 2025, is projected at 1.6% of total income[38] Exchange Rate Impact - The effect of exchange rate changes resulted in a gain of $8,033 in 2023, compared to a loss of $88,368 in 2022[24]