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Genpact Limited 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 (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)
Genpact Limited Revenue (TTM) | Genpact Limited Quote
Bottom Line Expectations
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 . Zacks Rank #4 (Sell) or 5 (Strong Sell) stocks are best avoided, especially when the company is seeing negative estimate revisions. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .