Concentrix Corporation (CNXC) Tops Q1 EPS by 21c, Revenues Beat; Offers 2Q Revenue Outlook Above Consensus

Concentrix Corporation (NASDAQ: CNXC) reported Q1 EPS of $2.29, $0.21 better than the analyst estimate of $2.08. Revenue for the quarter came in at $1.35 billion versus the consensus estimate of $1.28 billion.

First Quarter Fiscal 2021 Highlights:

• Revenue was $1,353.3 million, up 13.9% from the prior year first quarter and 11.7% on a constant currency basis, compared with $1,188.6 million in the prior year first quarter.
• Operating income was $134.9 million, or 10.0% of revenue, compared with $88.2 million, or 7.4% of revenue, in the prior year first quarter.
• Non-GAAP operating income was $176.6 million, or 13.1% of revenue, compared with $144.8 million, or 12.2% of revenue, in the prior year first quarter.
• Adjusted EBITDA was $212.6 million, or 15.7% of revenue, compared with $176.5 million, or 14.8% of revenue, in the prior year first quarter.

"We are successfully executing on our plan for above-market growth and margin expansion," said Chris Caldwell, Concentrix President and CEO. "The strength of our technology-infused global platform, deep domain expertise, and passion for the customer experience continues to resonate well with existing and new clients. Based upon our strong performance to date and looking forward with the increased demand across all the geographies and verticals we serve, we now expect to achieve constant-currency revenue growth of above 10 percent for fiscal 2021 with margins above pre-COVID levels.”

Business OutlookThe following statements are based on Concentrix’ current expectations for the second quarter of fiscal 2021. Non-GAAP financial measures exclude the impact of acquisition-related and integration expenses, spin-off related expenses, the amortization of intangibles, depreciation, share-based compensation and the related tax effects thereon. These statements are forward-looking and actual results may differ materially.

GUIDANCE:

Concentrix Corporation sees Q2 2021 revenue of $1.33-1.38 billion, versus the consensus of $1.23 billion.

Second Quarter Fiscal 2021 Expectations:

• Second-quarter revenue is expected to be in the range of $1.33 billion to $1.38 billion as reported.
• Second-quarter operating income is expected to be in the range of $114 million to $128 million and non-GAAP operating income is expected to be in the range of $160 million to $174 million.
• The effective tax rate is expected to approximate 27% to 28%.

For earnings history and earnings-related data on Concentrix Corporation (CNXC) click here.

You May Also Be Interested In

• Safe & Green (SGBX) Provides Update on Audit and Planned 10-K Filing
• lululemon athletica (LULU) to close one of smaller distribution centers located in Sumner, WA at the end of 2024 - Reuters
• Park National Corp. (PRK) Tops Q1 EPS by 36c