Genpact Stock Rises 11% Since Q4 Earnings and Revenues Beat

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]