WNS Holdings (NYSE: WNS) reported Q3 EPS of $0.89, $0.15 better than the analyst estimate of $0.74. Revenue for the quarter came in at $228.19 million versus the consensus estimate of $222.19 million.

• Revenue less repair payments of $228.2 million, up 16.5% from $195.9 million in Q3 of last year and up 3.4% from $220.7 million last quarter
• Adjusted Net Income (ANI) of $40.9 million, compared to $38.0 million in Q3 of last year and $40.6 million last quarter
• Adjusted diluted earnings per ADS of $0.80, compared to $0.73 in Q3 of last year and $0.79 last quarter

“WNS’s differentiated capabilities in the BPM marketplace are resonating well with both existing and prospective clients, enabling the company to continue delivering solid financial and operating results. In the fiscal third quarter, revenue less repair payments* grew 16% year-over-year on both a reported and constant currency* basis. The company also posted 23% adjusted operating margin*, $0.80 in adjusted diluted earnings per share, and $62 million in cash from operations,” said Keshav Murugesh, WNS’s Chief Executive Officer. “WNS remains focused on enhancing our ability to ‘co-create’ unique, industry-specific solutions which enable our clients to improve their competitive positioning. To do this, we will continue to invest in technology, transformation, analytics, and domain to insure we remain relevant today and in the future. Our focus remains on the long-term BPM opportunity, and on superior execution which will enable value creation for all our key stakeholders.”

GUIDANCE:

WNS Holdings sees FY2020 EPS of $3.05-$3.12, versus the consensus of $3.03. WNS Holdings sees FY2020 revenue of $890-900 million, versus the consensus of $885.44 million.

WNS is updating guidance for the fiscal year ending March 31, 2020 as follows:

• Revenue less repair payments* is expected to be between $890 million and $900 million, up from $794.0 million in fiscal 2019. This assumes an average GBP to USD exchange rate of 1.31 for the remainder of fiscal 2020.
• ANI* is expected to range between $158 million and $162 million versus $140.4 million in fiscal 2019. This assumes an average USD to INR exchange rate of 71.00 for the remainder of fiscal 2020.
• Based on a diluted share count of 51.9 million shares, the company expects adjusted diluted earnings* per ADS to be in the range of $3.05 to $3.12 versus $2.69 in fiscal 2019.

“The company has updated our 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 12% to 13%, or 13% to 14% on a constant currency* basis. We currently have over 99% visibility to the midpoint of the range.”

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