Genpact (G) To Report Q4 Earnings: What's In The Cards?
Zacks Investment Research | Feb 07, 2019 07:38AM ET
Genpact Limited (NYSE:G) is slated to release fourth-quarter 2018 results on Feb 7, after market close.
Over the past three months, shares of Genpact have gained 4.3% against the 0.9% decline of the industry it belongs to.
Let's check out how things are shaping up for the announcement.
Strength Across Service Lines, Client Baseto Drive Top Line
The Zacks Consensus Estimate for fourth-quarter 2018 revenues is pegged at $809.73 million, indicating year-over-year growth of 10.3%. The upside is likely to be driven by strength in the company’s high-tech and life sciences verticals and contributions from CPG, manufacturing and healthcare. Increase in the company’s business process outsourcing (BPO) services (inclusive of the transformation services delivered to Global Clients) should also drive the company’s top line.
In third-quarter 2018, revenues of $747.97 million improved 5.5% year over year.
Going by client type, the consensus estimate for Global Client revenues is pegged at $741 million, indicating year-over-year growth of 10.8%. The upside is expected to be driven by strength across the company’s high tech, life sciences, consumer packaged goods, infrastructure, manufacturing and services and healthcare verticals. In third-quarter 2018, Global Client revenues of $683 million climbed 7% year over year.
The consensus mark for General Electric (NYSE:GE) revenues is pegged at $67 million, indicating year-over-year growth of 3.1%. In third-quarter 2018, GE revenues of $65 million declined 11% year over year.
Based on the type of services offered, the consensus estimate for BPO revenues is pegged at $675 million, indicating year-over-year growth of 9.9%. The upside is likely to result from increase in services offered to Global Clients. In third-quarter 2018, total BPO revenues of $623 million increased 7% year over year.
The consensus mark for IT revenues is pegged at $127 million, indicating year-over-year growth of 4.9%. In third-quarter 2018, total IT revenues of $125 million remained flat year over year.
Genpact Limited Revenue (TTM)
Get The News You Want
The Zacks Consensus Estimate for earnings per share (EPS) in the to-be-reported quarter is pegged at 48 cents, indicating year-over-year growth of 11.6%. The bottom line should benefit from higher operating profits, which is likely to be partially offset by a tax impact.
In third-quarter 2018, adjusted earnings of 48 cents per share came ahead of the year-ago figure by 2 cents.
What Our Model Says
According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP Filter .
Genpact has a Zacks Rank #3 and an Earnings ESP of -2.08%.
Genpact Limited Price and EPS Surprise
Here are a few stocks from the broader Zacks Business Services sector that investors may consider as our model shows that these have the right combination of elements to beat on earnings:
Steelcase (NYSE:SCS) has an Earnings ESP of +11.86% and a Zacks Rank #1. The company is expected to release fourth-quarter fiscal 2019 results on Mar 19. You can see the complete list of today’s Zacks #1 Rank stocks here .
IQVIA Holdings (NYSE:IQV) has an Earnings ESP of +0.37% and a Zacks Rank #3. The company is slated to report fourth-quarter 2018 results on Feb 14.
Fiserv (NASDAQ:FISV) has an Earnings ESP of +0.03% and a Zacks Rank #3. The company is scheduled to release fourth-quarter 2018 results on Feb 7.
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With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
Zacks Investment Research
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