CX services provider Concentrix's Q4 adjusted EPS beats expectations

Overview

• Global tech service leader's Q4 revenue slightly beat analyst expectations

• Adjusted EPS for Q4 beat analyst expectations

• Company returned $258 mln to shareholders in fiscal 2025 via dividends and buybacks

Outlook

• Concentrix forecasts Q1 revenue between $2.475 bln and $2.5 bln

• Company expects full-year revenue of $10.035 bln to $10.18 bln

• Concentrix anticipates adjusted free cash flow of $630 mln to $650 mln in fiscal 2026

Result Drivers

• INTELLIGENT TRANSFORMATION - Investments in intelligent transformation solutions contributed to revenue growth, according to CEO Chris Caldwell

• GOODWILL IMPAIRMENT - A non-cash goodwill impairment charge of $1,523.3 million impacted operating income

• CASH FLOW AND SHAREHOLDER RETURNS - Record cash flow from operations and $258 million returned to shareholders through dividends and buybacks

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the business support services peer group is "buy"

• Wall Street's median 12-month price target for Concentrix Corp is $62.00, about 53.2% above its January 12 closing price of $40.48

• The stock recently traded at 3 times the next 12-month earnings vs. a P/E of 4 three months ago

Press Release: ID:nGNX1gK5q5

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