ExlService (EXLS) Tops Q2 EPS by 3c, Revenues Beat; Boosts FY18 Revenue Outlook

ExlService (NASDAQ: EXLS) reported Q2 EPS of $0.67, $0.03 better than the analyst estimate of $0.64. Revenue for the quarter came in at $210.1 million versus the consensus estimate of $209.24 million.

Rohit Kapoor, Vice Chairman and Chief Executive Officer, said, “EXL generated revenues of $210.1 million, up 11.1% year-over-year, and adjusted diluted EPS was $0.67. Our revenue growth was broad-based, led by a 15.6% increase in Analytics revenues and a 9.5% increase in our Operations Management businesses driven by double-digit revenues growth in Insurance and Finance & Accounting.

“Our investments in domain expertise, data capabilities and emerging technologies made over the past several years are positioning EXL as the strategic digital transformation partner for our clients, resulting in several strategic deal wins and creating a strong pipeline of opportunities. As previously announced, the acquisition of SCIO Health Analytics closed on July 1, 2018. This strategic acquisition accelerates our market position in the growing healthcare analytics market and expands EXL’s capabilities across the healthcare continuum.”

Vishal Chhibbar, Chief Financial Officer, said, “We are increasing our revenue guidance for 2018 to $878 million - $892 million from $835 million - $855 million reflecting the addition of revenue from SCIO Health Analytics, better performance in the second quarter and an improved outlook for the year, despite foreign exchange headwinds. Our guidance represents annual revenue growth of 15% to 17% on a constant currency basis. Our adjusted diluted EPS guidance for 2018 remains unchanged at $2.70 - $2.80. Our cash and short-term investments were $233 million on June 30, 2018.”

GUIDANCE:

ExlService sees FY2018 EPS of $0.27-$0.28. ExlService sees FY2018 revenue of $892 million.

For earnings history and earnings-related data on ExlService (EXLS) click here.

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