UPDATE: WNS Holdings (WNS) Tops Q3 EPS by 19c, Revenues Beat; Offers FY21 EPS Above Consensus, Reduced FY21 Revenue Outlook
WNS Holdings (NYSE: WNS) reported Q3 EPS of $0.79, $0.19 better than the analyst estimate of $0.60. Revenue for the quarter came in at $224.5 million versus the consensus estimate of $213.43 million.
Non-GAAP Financial Measures*
- Revenue less repair payments of $224.5 million, down 1.6% from $228.2 million in Q3 of last year and up 4.7% from $214.4 million last quarter
- Adjusted Net Income (ANI) of $41.0 million, compared to $40.9 million in Q3 of last year and $37.9 million last quarter
- Adjusted diluted earnings per ADS of $0.79, compared to $0.80 in Q3 of last year and $0.73 last quarter
“Our fiscal third quarter results continue to demonstrate the strategic importance of our BPM solutions and resilience of the WNS business model. In Q3, we were able to sequentially grow top line, deliver healthy margins, and generate strong cash flow in the midst of a global pandemic,” said Keshav Murugesh, WNS’s Chief Executive Officer. “During the third quarter, we also re-initiated global hiring in support of both signed new business and a healthy sales pipeline. Looking forward, while we continue to expect some COVID-related volatility in our business over the next few quarters, we believe the long-term BPM market opportunity continues to improve. Driven by disruption and the need for “hyperautomation”, clients are looking to WNS to help them transform their business models and improve competitive positioning. WNS will continue to focus on superior execution and investing in the breadth and depth of our capabilities to ensure we deliver sustainable value to all of our key stakeholders.”
GUIDANCE:
WNS Holdings sees FY2021 EPS of $2.61-$2.73, versus the consensus of $2.46. WNS Holdings sees FY2021 revenue of $860-870 million, versus the consensus of $849.69 million.
Fiscal 2021 Guidance
WNS is updating guidance for the fiscal year ending March 31, 2021 as follows:
- Revenue less repair payments* is expected to be between $860 million and $870 million, down from $896.2 million in fiscal 2020. Guidance assumes an average GBP to USD exchange rate of 1.35 for the remainder of fiscal 2021.
- ANI* is expected to range between $136 million and $142 million versus $161.4 million in fiscal 2020. Guidance assumes an average USD to INR exchange rate of 73.50 for the remainder of fiscal 2021.
- 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 $2.61 to $2.73 versus $3.10 in fiscal 2020.
“The company has updated our forecast for fiscal 2021 based on current visibility levels and exchange rates,” said Sanjay Puria, WNS’s Chief Financial Officer. “Our guidance for the full year reflects a reduction in revenue less repair payments* of -4% to -3% on both a reported and constant currency* basis. We currently have over 99% visibility to the midpoint of the range, consistent with January guidance in previous years.”
For earnings history and earnings-related data on WNS Holdings (WNS) click here.