News

Concentrix Stock Falls After Disappointing Fourth-Quarter Results

James L. Flint

• January 25, 2024

Shares of Concentrix have experienced a significant drop in value following the release of the company's fourth-quarter financial results and its fiscal 2024 outlook. The customer-experience solutions provider reported lower-than-expected revenue for the fourth quarter and provided a fiscal 2024 guidance that fell short of analyst expectations.

Declining Stock Performance

In early trading, Concentrix shares were down 15% at $88.31. This is a considerable decrease compared to the stock's trading price of around $140 approximately a year ago. The market's reaction to the company's performance shows investor concerns about its future prospects.

Fiscal 2024 Outlook

Concentrix is anticipating revenue between $9.51 billion and $9.7 billion for fiscal 2024. However, this projection falls below analyst expectations of $9.71 billion, as reported by FactSet. Similarly, the company's annual adjusted earnings, excluding one-time items, are expected to be between $11.69 and $12.50 per share. This forecast is slightly lower than the $12.49 per share expected by analysts surveyed by FactSet.

Fourth-Quarter Results

For the three-month period ending on November 30, Concentrix generated a profit of $69.5 million, or $1.09 per share. In comparison, during the same quarter the previous year, the company reported a profit of $104.9 million, or $2.01 per share. Adjusted earnings for the fourth quarter were $3.36 per share, surpassing the expectations of two analysts surveyed by FactSet who predicted $2.58 per share.

Additionally, Concentrix saw an increase in revenue, reaching $2.23 billion compared to the previous year's fourth-quarter revenue of $1.64 billion. Although this signifies growth, it fell slightly below the expectations of two analysts polled by FactSet who had projected revenue of $2.38 billion.

In conclusion, Concentrix's disappointing fourth-quarter results and its fiscal 2024 outlook have caused a decline in stock value. The company will need to address the concerns raised by investors and work towards improving its performance moving forward.