Concentrix Corp (CNXC) released its financial results for the third quarter, revealing a mixed bag of performance. While revenue soared, exceeding analyst expectations, earnings fell short.
The company reported earnings of $2.87 per share, missing the consensus estimate of $2.93 by 2.05%. However, revenue reached $2.387 billion, outpacing the anticipated $2.382 billion and marking a substantial 46.2% increase compared to the same period last year.
Concentrix attributed the dip in operating income to increased amortization of intangibles and integration expenses related to its recent acquisition of Webhelp, finalized in the fourth quarter of 2023.
Despite the earnings miss, Concentrix made significant strides in innovation, announcing the launch of iX Hello, a groundbreaking generative AI-powered solution designed to enhance productivity and engagement for businesses. This launch marks the first product in a suite of AI and GenAI technologies already deployed internally and with select clients.
iX Hello is poised to complement Concentrix’s existing technology partner strategies, highlighting the company’s commitment to transformative solutions and reinforcing its position as a leading provider of intelligent experience solutions globally.
Looking ahead, Concentrix anticipates fourth-quarter revenue in the range of $2.42 billion to $2.47 billion, with adjusted earnings projected between $2.90 and $3.16 per share. For fiscal year 2024, the company expects revenue to fall between $9.591 billion and $9.641 billion, with adjusted earnings estimated between $11.05 and $11.31 per share.
Following the release of these results, Concentrix shares experienced a decline of 14.02% in after-hours trading, reaching $54.70 at the time of publication. The company’s performance will be closely watched by investors as they assess its future growth trajectory in a rapidly evolving technological landscape.
