Concentrix Updates FY25 Outlook After Weak Q2; Shares Down 8%

(RTTNews) - Concentrix Corp. (CNXC) on Thursday revealed outlook for the third quarter, and narrowed its fiscal 2025 earnings view, but raised revenue forecast. The company's shares were down 8 percent on Thursday's extended hours after reporting lower second-quarter earnings, below the Street estimates. In the third quarter, the business proccess outsourcing company expects adjusted earnings per share in the range of $2.80 to $2.91 on revenues between $2.445 billion and $2.470 billion. Analysts expect the company to post earnings of $2.90 per share on revenues of $2.39 billion. Analysts' estimates typically exclude special items.

The guidance implies constant currency revenue growth for the quarter ranging from 1% to 2%. For fiscal 2025, Concentrix now expects adjusted earnings per share between $11.53 and $11.76 on revenues in the range of $9.720 billion and $9.815 billion. Analysts expect the company to post earnings of $11.53 per share on revenues of $9.61 billion.

The guidance implies constant currency revenue growth of 1% to 2%.

The company previously expected adjusted earnings per share of $11.18 to $11.77, on revenues of $9.490 billion to $9.635 billion, representing a constant currency revenue growth of 0% to 1.5%. In the latest quarter, the company posted profit of $42.09 million or $0.63 per share, lower than $66.63 million or $0.98 per share in the same period a year ago. The company's adjusted earnings came in at $170.3 million or $2.70 per share for the period, compared to $176.1 million or $2.69 per share in the second quarter last year. Analysts on average had expected the company to earn $2.75 per share.

The company attributed the decline to temporary program pauses in the mid-quarter and investments ahead of expected accelerated growth in the second half of the year. Concentrix's revenue for the period rose 1.6 percent to $2.417 billion from $2.380 billion last year.

The Company's Board of Directors has declared a quarterly dividend of $0.33275 per share payable on August 5, to shareholders of record at the close of business on July 25.

On the NASDAQ, the stock was down 8 percent in Thursday's after-hrs at $50.67. CNXC ended Thursday's regular trade at $55.13, up 2 percent.