WNS Holdings (NYSE: WNS) reported Q4 EPS of $0.73, $0.05 better than the analyst estimate of $0.68. Revenue for the quarter came in at $206.6 million versus the consensus estimate of $207.28 million.

“In the fiscal fourth quarter, WNS once again delivered solid operational and financial performance. Q4 revenue less repair payments* grew 4% year-over-year, or 9% on a constant currency* basis, and we added 8 new logos during the quarter. Our full year results demonstrate WNS’s differentiated positioning in the BPM marketplace and our ability to execute. For fiscal 2019, WNS grew organic, constant currency* revenue by 10%, delivered adjusted operating margin of 21%, grew adjusted diluted earnings* per ADS by 20% to $2.69, and increased our net cash position by $42.3 million,” said Keshav Murugesh, WNS’s Chief Executive Officer. “As we enter fiscal 2020, the BPM marketplace remains healthy with business disruption driving transformational opportunities. We believe WNS’s deep domain expertise, combined with our capabilities across technology and automation, analytics, and process, uniquely positions us to help clients better compete. We remain focused on investing for the future, and to ‘co-create’ with our clients to deliver long-term sustainable business value for all of our key stakeholders.”

GUIDANCE:

WNS Holdings sees FY2020 EPS of $2.67-$2.69, versus the consensus of $2.81.

• Revenue less repair payments* is expected to be between $854 million and $900 million, up from $794.0 million in fiscal 2019. This assumes an average GBP to USD exchange rate of 1.31 in fiscal 2020 versus 1.31 in fiscal 2019.
• ANI* is expected to range between $139 million and $151 million versus $140.4 million in fiscal 2019. This assumes an average USD to INR exchange rate of 69.00 in fiscal 2020 versus 69.92 in fiscal 2019.
• Fiscal 2020 guidance includes an anticipated reduction in adjusted diluted earnings* per ADS of $0.05 as a result of IFRS 16 (as discussed below).
• Based on a diluted share count of 52.1 million shares, the company expects adjusted diluted earnings* per ADS to be in the range of $2.67 to $2.90 versus $2.69 in fiscal 2019.

“The company has provided our initial forecast for fiscal 2020 based on current visibility levels and exchange rates,” said Sanjay Puria, WNS’s Chief Financial Officer. “Our guidance for the year reflects growth in revenue less repair payments* of 8% to 13%, or 7% to 13% on a constant currency* basis. Consistent with our guidance methodology in previous years, we enter fiscal 2020 with 90% visibility to the midpoint of the range. For the year, we expect capital expenditures of approximately $37 million.”

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