NASDAQ$CNXC
Concentrix Corporation · Q2 2024 earnings
Q2 2024 earnings · · Investor relations
Briefing
Concentrix's Q2 2024 performance exceeded revenue expectations and raised full-year revenue guidance, driven by strong demand. Adjusted free cash flow was over $200 million, and $60 million was returned to shareholders through repurchases and dividends.
Concentrix reported strong second-quarter results, exceeding revenue expectations with a 47.4% year-over-year increase to $2,380.7 million. The company also raised its full-year revenue guidance, reflecting solid demand for its technology and service offerings. Adjusted free cash flow was over $200 million, and the company returned $60 million to shareholders through share repurchases and dividends.
- Revenue increased by 47.4% year-over-year to $2,380.7 million, with a 4.0% increase on a pro forma constant currency basis.
- Operating income was $150.2 million, or 6.3% of revenue, while non-GAAP operating income was $321.1 million, or 13.5% of revenue.
- Adjusted EBITDA reached $379.6 million, or 15.9% of revenue.
- The company generated $201.9 million in adjusted free cash flow and returned $60 million to shareholders through share repurchases and dividends.
Headline financials
Revenue & EPS history
Concentrix · Revenue · Quarterly
$2.38B
Revenue by segment
Concentrix · $1.63B total across 6 segments · Q3 2023
- Tech & Electronics$528M+5.5%32.4%
- Retail & E-comm$322M+7.6%19.7%
- Comms & Media$252M-8.0%15.5%
- BFSI$247M+5.1%15.1%
- Healthcare$167M+17.0%10.3%
- Other$115M-9.1%7.1%
Forward guidance
Concentrix provided guidance for the third quarter and full year of fiscal 2024, with revenue expectations of $2.350 billion to $2.400 billion for Q3 and $9.580 billion to $9.675 billion for the full year. The company also confirmed its outlook for adjusted free cash flow of $700 million for fiscal 2024.
Tailwinds
- Third quarter reported revenue of $2.350 billion to $2.400 billion.
- Full year reported revenue of $9.580 billion to $9.675 billion.
- Operating income of $172 million to $181 million for Q3.
- Non-GAAP operating income of $330 million to $350 million for Q3.
- Full year adjusted free cash flow of $700 million confirmed.
Headwinds
- Third quarter expectations assume an approximately 205-basis point negative impact of foreign exchange rates compared with the prior year period.
- Full year expectations assume an approximately 150-basis point negative impact of foreign exchange rates compared with the prior year.
- The effective tax rate is expected to be approximately 25% to 26% for Q3.
- The effective tax rate is expected to be approximately 25% to 25.5% for the full year.
- The company expects to repurchase approximately $60 million of its common stock over the final two quarters of the year.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 18 quarterly earnings reports · overlaid with Q2 2024
+0.2%
Avg return
Earnings day
+1.8%
Avg return
5 days after
-2.3%
Avg return
30 days after
50%
13 / 26 earnings
Positive
+42.4%
Q1 2025
Best reaction
-19.8%
Q1 2026
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q2 2026 | — | — | — | |
| Q1 2026 | -19.8% | +4.5% | — | |
| Q4 2025 | -3.2% | +6.6% | -25.3% | |
| Q3 2025 | -13.4% | -12.3% | -14.7% | |
| Q2 2025 | -1.8% | +3.3% | -13.5% | |
| Q1 2025 | +42.4% | +18.3% | +9.9% | |
| Q4 2024 | +4.9% | +5.3% | +3.5% | |
| Q3 2024 | -19.3% | -19.7% | -30.3% | |
| Q2 2024 | +6.7% | +8.4% | +14.6% | |
| Q1 2024 | +4.1% | +5.8% | -11.4% | |
| Q4 2023 | -16.4% | -11.7% | -20.6% | |
| Q3 2023 | +10.9% | +12.7% | +1.9% | |
| Q2 2023 | -3.5% | -0.7% | -0.3% | |
| Q1 2023 | +0.3% | +0.3% | -19.3% | |
| Q4 2022 | -1.6% | -3.6% | -1.1% | |
| Q3 2022 | -3.3% | +3.5% | +7.7% | |
| Q2 2022 | -3.9% | -5.6% | -9.2% | |
| Q1 2022 | -10.5% | -15.8% | -17.0% | |
| Q4 2019 | +12.0% | +13.0% | +10.6% | |
| Q4 2021 | +1.5% | +1.9% | +20.0% | |
| Q3 2020 | -0.9% | +0.1% | -3.2% | |
| Q3 2021 | +2.5% | +8.4% | +4.8% | |
| Q2 2020 | +1.1% | +0.3% | +2.6% | |
| Q2 2021 | -2.0% | +2.4% | +4.0% | |
| Q1 2020 | +1.5% | +0.9% | +3.2% | |
| Q1 2021 | +8.9% | +11.5% | +24.6% | |
| Q4 2020 | +7.9% | +9.4% | +1.0% | |
| Q3 2019 | — | — | — | |
| Q2 2019 | — | — | — | |
| Q1 2019 | — | — | — |
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