Genpact's (G) Q2 Earnings Surpass Estimates, Increase Y/Y

Genpact Limited G reported better-than-expected second-quarter 2024 results.

Quarterly EPS of 79 cents surpassed the consensus estimate by 8.2% and grew 9.7% year over year. Revenues of $1.18 billion beat the consensus mark by 2.6% and increased 6.4% from the year-ago quarter.

Other Quarterly Details

Data-Tech-AI services revenues (representing 46% of total revenues) increased 4% year over year on a reported, as well as constant currency basis to $546 million, surpassing our estimate of $508.8 million. Digital Operations services revenues of $630 million (54% of total revenues) increased 9% from the year-ago quarter actuals on a reported basis and at cc, missing our estimate of $637.2 million.

Adjusted income from operations totaled $198.4 million and grew 7% on a year-over-year basis. Adjusted operating income margin of 16.9% increased 10 basis points year over year.

Genpact exited the second quarter with cash and cash equivalents of $914.2 million compared with $478.4 million reported at the end of the preceding quarter. Long-term debt (less current portion) was $1.2 billion compared with $818.3 million at the end of the prior quarter.

The company generated $209 million in cash from operating activities, while capital expenditure was $19.3 million. Genpact returned $27.3 million in dividends to shareholders and repurchased shares worth $63 million.

Q3 and 2024 Guidance

For the third quarter of 2024, Genpact expects revenues to be between $1.18 billion and $1.186 billion. Gross margin and adjusted income from operating margin are anticipated to be around 35.4% and 17.2%, respectively.

For 2024, the company expects revenues to be between $4.656 billion and $4.701 billion. Adjusted EPS is expected to be in the range of $3.14 and $3.18. Gross margin and adjusted income from operating margin are anticipated to be around 35.3% and 17%, respectively.

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