Concentrix Corporation Reports Third-Quarter Results

NEWARK, Calif. – Concentrix Corporation (NASDAQ:CNXC) experienced an 11.8% drop in share price during after-hours trading on Wednesday following its weaker-than-expected guidance for both the fourth quarter and full year.

Third-Quarter Earnings

The company announced adjusted earnings per share (EPS) of $2.87, which fell short of analyst estimates of $2.93. Revenue totaled $2.39 billion, slightly exceeding the consensus of $2.38 billion, marking a 46.2% year-over-year increase. On a pro forma constant currency basis, revenue increased by 2.6% compared to the same quarter last year.

Disappointing Outlook

Despite solid third-quarter results, Concentrix’s outlook was not well received by investors. For the fourth quarter, adjusted EPS is projected between $2.90 and $3.16, significantly lower than analyst predictions of $3.48. The revenue forecast for Q4 is between $2.42 and $2.47 billion, matching estimates of $2.465 billion.

Full-year fiscal 2024 guidance also disappointed, with Concentrix expecting adjusted EPS of $11.05-$11.31, compared to analyst expectations of $11.71. Projected full-year revenue ranges from $9.591 to $9.641 billion, against consensus estimates of $9.633 billion.

Management Comments

Chris Caldwell, President and CEO of Concentrix, stated, “Our third quarter marked another quarter of solid revenue growth and operating results. We are also delighted to leverage our technology investments to bring our iX Hello product to market with velocity.”

The company announced a return of $60 million to shareholders through share repurchases and dividends during the quarter, alongside a 10% increase in its quarterly dividend to $0.33275 per share.

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