Genpact's Stock Rises 12% Since Q3 Earnings and Revenues Beat

Core Insights - Genpact Limited reported strong third-quarter 2024 results, exceeding expectations in both earnings and revenue, leading to an 11.6% increase in stock price since the results announcement on November 7 [1] Financial Performance - Quarterly EPS was 85 cents, surpassing the consensus estimate by 6.3% and showing an 11.8% year-over-year growth [4] - Revenues reached $1.21 billion, beating the consensus mark by 2$213 million, reflecting a 9% year-over-year growth, with an adjusted operating income margin of 17.6%, up 40 basis points from the prior year [6] Revenue Breakdown - Data-Tech-AI services revenues, accounting for 47% of total revenues, increased by 9% year-over-year to $569 million, exceeding estimates [5] - Digital Operations services revenues, which represent 53$642 million, also surpassing estimates [5] Guidance Updates - Genpact raised its 2024 revenue guidance to a range of $4.74 billion to$4.751 billion, above the previous expectation of $4.656 billion to$4.701 billion and the current consensus estimate of $4.73 billion [2] - Adjusted EPS guidance for 2024 is now expected to be between$3.23 and $3.24, higher than the previous range of$3.14 to $3.18 and above the consensus estimate of$3.16 [3] - For Q4 2024, Genpact anticipates revenues between $1.222 billion and$1.233 billion, with gross margin and adjusted operating margin expected to be around 35.6% and 17.6%, respectively [8] Cash Flow and Shareholder Returns - The company generated $228 million in cash from operating activities, with capital expenditures of$19.8 million [7] - Genpact returned $26.9 million in dividends to shareholders and repurchased shares worth$75 million [7] Balance Sheet Highlights - At the end of the quarter, Genpact had cash and cash equivalents of $1 billion, an increase from$914.2 million in the previous quarter, while long-term debt remained flat at $1.2 billion [6]