WNS Holdings (NYSE: WNS) reported Q2 EPS of $0.53, $0.04 better than the analyst estimate of $0.49. Revenue for the quarter came in at $186.5 million versus the consensus estimate of $175.2 million.

Fiscal 2018 Guidance

WNS is updating guidance for the fiscal year ending March 31, 2018 as follows:

• Revenue less repair payments* is expected to be between $705 million and $727 million, up from $578.4 million in fiscal 2017. This assumes an average GBP to USD exchange rate of 1.31 for the remainder of fiscal 2018.
• ANI* is expected to range between $101 million and $108 million versus $92.2 million in fiscal 2017. This assumes an average USD to INR exchange rate of 65.0 for the remainder of fiscal 2018.
• Based on a diluted share count of 52.3 million shares, the company expects adjusted diluted earnings* per ADS to be in the range of $1.93 to $2.06 versus $1.74 in fiscal 2017.

“The company has updated our forecast for fiscal 2018 based on current visibility levels and exchange rates,” said Sanjay Puria, WNS’s Chief Financial Officer. “Our revised guidance for the year reflects growth in revenue less repair payments* of 22% to 26%, or 21% to 24% on a constant currency* basis. We currently have 98% visibility to the midpoint of the range.”

GUIDANCE:

WNS Holdings sees FY2018 EPS of $1.93-$2.06, versus the consensus of $1.99. WNS Holdings sees FY2018 revenue of $705-727 million, versus the consensus of $710.24 million.

GAAP Financials

• Revenue of $186.5 million, up 24.6% from $149.8 million in Q2 of last year and up 3.6% from $180.1 million last quarter
• Profit of $18.9 million, compared to $12.6 million in Q2 of last year and $16.7 million last quarter
• Diluted earnings per ADS of $0.36, compared to $0.24 in Q2 of last year and $0.32 last quarter

Non-GAAP Financial Measures*

• Revenue less repair payments of $182.3 million, up 26.9% from $143.7 million in Q2 of last year and up 4.0% from $175.3 million last quarter
• Adjusted Net Income (ANI) of $27.7 million, compared to $22.0 million in Q2 of last year and $23.6 million last quarter
• Adjusted diluted earnings per ADS of $0.53, compared to $0.42 in Q2 of last year and $0.45 last quarter

Other Metrics

• Added 7 new clients in the quarter, expanded 8 existing relationships
• Days sales outstanding (DSO) at 30 days
• Global headcount of 35,121 as of September 30, 2017

For earnings history and earnings-related data on WNS Holdings (WNS) click here.