NASDAQ$CNXC

Concentrix Corporation · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Concentrix reported solid revenue growth and profit improvements in an uncertain macro environment.

Concentrix reported revenue of $1,579.6 million, up 13.1% from the prior year. Operating income was $157.5 million, or 10.0% of revenue. Diluted earnings per common share was $2.04 compared to $2.08 in the prior year. The company also raised its quarterly dividend by 10 percent to $0.275 per share.

  • Revenue was $1,579.6 million, up 13.1% from the prior year third quarter.
  • Operating income was $157.5 million, or 10.0% of revenue.
  • Non-GAAP operating income was $221.5 million, or 14.0% of revenue.
  • Diluted earnings per common share (“EPS”) was $2.04 compared to $2.08 in the prior year third quarter.

Headline financials

Total Revenue

$1.58B

Previous: $1.4B+13.1%
EPS (adj)

$2.95

Previous: $2.49+18.5%
Revenue Growth

13.1%

Previous: 20.1%-34.8%
Capital Expenditures

-$97.3M

Previous: -$113M+13.8%
Free Cash Flow

$9.41M

Previous: -$3.12M+402.2%
Net Income

$107M

Previous: $110M-2.8%
Operating Income

$158M

Previous: $151M+4.1%
Gross Profit

$567M

Previous: $481M+17.8%
Cash & Equivalents

$176M

Previous: $154M+14.2%
Total Assets

$6.75B

Previous: $5.01B+34.7%
Stock-Based Comp

$9.81M

Previous: $9.65M+1.7%

Revenue & EPS history

Concentrix · Revenue · Quarterly

$1.58B

Q3 2022+13.1%vs Q3 2021
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

Concentrix · $1.58B total across 6 segments · Q3 2022

  • Tech & Electronics
    $501M+11.7%
  • Retail & E-comm
    $300M+24.0%
  • Comms & Media
    $274M+7.0%
  • BFSI
    $235M+11.4%
  • Healthcare
    $143M+25.8%
  • Other
    $127M+0.4%

Forward guidance

Fourth quarter adjusted constant currency revenue growth is expected to approximate 7%. Operating income is expected to exceed $180 million and non-GAAP operating income is expected to exceed $254 million.

Tailwinds

  • Fourth quarter adjusted constant currency revenue growth is expected to approximate 7%.
  • We expect the contribution of approximately $175 million in fourth quarter revenue from businesses acquired since the beginning of the prior year fourth quarter.
  • Operating income is expected to exceed $180 million.
  • Non-GAAP operating income is expected to exceed $254 million.

Headwinds

  • Based on current exchange rates, we expect an approximate 5-point negative impact of foreign exchange rates compared with the prior 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 Q3 2022

Historical avgQ3 2022

+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

Earnings price reactions
QuarterReport dateReaction (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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