Concentrix Corp. Shares Rise After Strong Fourth-Quarter Guidance and Dividend Increase
Concentrix Corp., a customer-experience solutions provider based in Newark, Calif., saw its shares rise by 6.5% to $78.77 per share in afternoon trading following the release of upbeat fourth-quarter guidance and an increase in its quarterly dividend. Despite a year-to-date decline of 41% in its stock price, the company remains confident about its future financial performance.
Fourth Quarter Revenue Expectations Surpass Analyst Projections
Concentrix anticipates fourth-quarter revenue to be between $2.19 billion and $2.215 billion, exceeding the FactSet analyst consensus of $1.823 billion. This optimistic guidance reflects the company's continued success in delivering customer-experience solutions.
Adjusted Earnings Fall Short of Analyst Estimates
While analysts polled by FactSet expected adjusted earnings of $3.21 per share for the fourth quarter, Concentrix foresees a slightly lower range of $3.03 to $3.15 per share. Nevertheless, the company remains confident in its ability to maintain strong profitability despite this slight disparity.
Dividend Increase Reflects Company's Commitment to Shareholders
Concentrix has decided to increase its quarterly dividend from 27.5 cents to 30.25 cents per share, representing a 10% boost. This decision demonstrates the company's dedication to rewarding its shareholders and underlines its confidence in future growth prospects. The dividend will be payable on November 7 to shareholders of record as of October 27.
Fiscal Third-Quarter Performance Highlights
In its most recent fiscal third quarter, Concentrix reported a profit of $77.6 million, or $1.49 per share, compared to $106.7 million, or $2.04 per share, in the same period last year. While the reported earnings fell short of the FactSet analyst consensus of $1.84 per share, the company's overall revenue increased by 3% to $1.63 billion.
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