Globant (GLOB) Earnings Preview: What to Expect on November 14th
Investors are eagerly awaiting Globant’s upcoming earnings release on Thursday, November 14th, 2024. The company, a leading provider of digital transformation solutions, is expected to report earnings per share (EPS) of $1.62, according to analyst estimates. While exceeding these estimates would be a positive sign, investors will also be closely watching for the company’s guidance for the next quarter, as it can significantly impact stock prices.
Historical Earnings Performance
Globant has a track record of exceeding analyst expectations. In the last quarter, the company beat EPS estimates by $0.01, leading to a 5.08% increase in its share price the following day. Here’s a look at Globant’s historical earnings performance:
| Quarter | EPS Estimate | EPS Actual | Price Change (%) |
|—|—|—|—|
| Q2 2024 | 1.50 | 1.51 | 5.0% |
| Q1 2024 | 1.53 | 1.53 | -6.0% |
| Q4 2023 | 1.61 | 1.62 | -6.0% |
| Q3 2023 | 1.48 | 1.48 | 12.0% |
Market Performance
Globant’s stock has been performing well, with shares trading at $235.22 as of November 12th. Over the past 52 weeks, the stock has risen by 28.47%. This positive performance suggests that long-term shareholders are optimistic about the company’s prospects.
Analyst Sentiment and Peer Comparisons
Analysts are generally bullish on Globant. The company has received 13 ratings, resulting in a consensus rating of “Outperform.” The average one-year price target stands at $231.69, indicating a potential 1.5% downside. However, it’s important to consider how Globant stacks up against its peers.
| Company | Consensus Rating | Average 1-Year Price Target | Potential Upside/Downside |
|—|—|—|—|
| Globant | Outperform | $231.69 | 1.5% Downside |
| EPAM Sys | Outperform | $247.82 | 5.36% Upside |
| ASGN | Neutral | $99.67 | 57.63% Downside |
| DXC Technology | Neutral | $23.33 | 90.08% Downside |
Key Takeaways from Peer Analysis:
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Revenue Growth:
Globant leads its peers in revenue growth, with a rate of 18.08%.*
Gross Profit Margin:
Globant also boasts the highest gross profit margin among its peers.*
Return on Equity (ROE):
Globant’s ROE is the lowest of its peers, indicating potential challenges in using equity capital effectively.Understanding Globant’s Business
Globant is a global technology services company specializing in digital transformation. Founded in Argentina in 2003, the company is now headquartered in Luxembourg and serves clients primarily in the US and Latin America. Its client base is concentrated in the media and entertainment and financial services industries.
Financial Milestones
Market Capitalization:
Globant’s market capitalization is relatively small compared to its peers, which could be attributed to factors such as growth expectations or operational capacity.Revenue Growth:
Globant has achieved a strong revenue growth rate of 18.08% as of June 30th, 2024, exceeding the average growth rate of its peers in the Information Technology sector.Net Margin:
Globant demonstrates strong profitability and cost control, with a net margin of 6.58% that surpasses industry averages.Return on Equity (ROE):
Globant’s ROE of 2.19% is below industry benchmarks, suggesting potential challenges in generating satisfactory returns for shareholders.Return on Assets (ROA):
Globant’s ROA of 1.46% is above industry averages, indicating effective asset utilization.Debt Management:
Globant’s debt-to-equity ratio of 0.14 is below industry norms, signifying a sound financial structure.Looking Ahead
Investors should monitor the following key factors during the earnings call:
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Revenue and Earnings Growth:
Look for evidence of sustained growth in revenue and earnings, particularly in light of the challenging economic environment.*
Guidance:
Pay close attention to management’s outlook for the next quarter and fiscal year. Any positive or negative revisions could significantly impact stock price.*
Financial Metrics:
Analyze key financial indicators like ROE, ROA, and net margin to assess Globant’s profitability and financial health.Investors looking to track all earnings releases for Globant can visit the earnings calendar on our website.
