Overview

* Concentrix Corp ( CNXC ) fiscal Q3 revenue grows 4% yr/yr, beating analyst expectations

* Adjusted EPS of $2.78 for fiscal Q3 misses analyst estimates, per LSEG data

* Co plans to return over $240 mln to shareholders in fiscal 2025

Outlook

* Concentrix ( CNXC ) expects Q4 revenue between $2.525 bln and $2.550 bln

* Company forecasts Q4 non-GAAP EPS of $2.85 to $2.96

* Concentrix ( CNXC ) sees full-year revenue at $9.798 bln to $9.823 bln

* Company anticipates full-year non-GAAP EPS of $11.11 to $11.23

Result Drivers

* REVENUE GROWTH - Revenue increased by 4% year-on-year, exceeding the company's guidance, driven by strong demand for integrated solutions

* OPERATING INCOME DECLINE - Operating income decreased by 4% compared to the prior year qtr, with operating margin down 50 bps to 5.9%

* NET INCOME SURGE - Net income rose significantly by 430.7% to $88.1 mln, attributed to improved business transformation solutions and expanded offerings

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Beat $2.48 $2.46

Revenue bln bln (5

Analysts

)

Q3 Miss $2.78 $2.87 (5

Adjusted Analysts

EPS )

Q3 $183.20

Adjusted mln

Net

Income

Q3 Miss $359.20 $381.80

Adjusted mln mln (5

EBITDA Analysts

)

Q3 Miss $305.10 $322.40

Adjusted mln mln (4

Operatin Analysts

g Income )

Q3 12.3%

Adjusted

Operatin

g Margin

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "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 ( CNXC ) is $65.50, about 15.1% above its September 24 closing price of $55.60

* The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 5 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)