Globant (GLOB) Lags Q1 Earnings and Revenue Estimates

Company Performance - Globant reported quarterly earnings of $1.50 per share, missing the Zacks Consensus Estimate of $1.58 per share, and showing a decrease from $1.53 per share a year ago, resulting in an earnings surprise of -5.06% [1] - The company posted revenues of $611.09 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 1.83%, compared to $571.08 million in the same quarter last year [2] - Over the last four quarters, Globant has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2] Stock Outlook - Globant shares have declined approximately 37.7% since the beginning of the year, contrasting with the S&P 500's gain of 0.2% [3] - The current consensus EPS estimate for the upcoming quarter is $1.66 on revenues of $639.83 million, and for the current fiscal year, it is $6.80 on revenues of $2.61 billion [7] - The estimate revisions trend for Globant is currently unfavorable, resulting in a Zacks Rank 5 (Strong Sell), indicating expected underperformance in the near future [6] Industry Context - The Internet - Software and Services industry, to which Globant belongs, is currently ranked in the bottom 18% of over 250 Zacks industries, suggesting a challenging environment [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact investor sentiment and stock performance [5]