NASDAQ$CNXC

Concentrix Corporation · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Concentrix reported Q4 2021 earnings with revenue up 12.7% year-over-year and EPS of $2.35.

Concentrix Corporation reported strong financial results for the fiscal fourth quarter ended November 30, 2021. Revenue increased by 12.7% compared to the prior year, reaching $1,466.6 million. Diluted earnings per share (EPS) rose significantly to $2.35, compared to $1.25 in the prior year fourth quarter. The company also provided its first quarter and full year fiscal 2022 outlook.

  • Revenue was $1,466.6 million, up 12.7% from the prior year fourth quarter.
  • Operating income was $157.9 million, or 10.8% of revenue.
  • Non-GAAP diluted EPS was $2.99 compared to $2.07 in the prior year fourth quarter.
  • The company repurchased 0.1 million shares in the fourth quarter at a cost of $25.1 million.

Headline financials

Total Revenue

$1.47B

Previous: $1.3B+12.7%
EPS (adj)

$2.99

Previous: $2.07+44.4%
Revenue Growth

12.7%

Previous: 7.3%+74.0%
Capital Expenditures

$36.2M

Previous: $65.1M-44.4%
Free Cash Flow

$146M

Previous: $54M+170.3%
Net Income

$124M

Previous: $64.6M+92.0%
Operating Income

$158M

Previous: $120M+31.4%
Gross Profit

$519M

Previous: $459M+13.2%
Cash & Equivalents

$182M

Previous: $153M+19.2%
Total Assets

$5.05B

Previous: $5.18B-2.5%
Stock-Based Comp

$10.8M

Previous: $3.75M+188.8%

Revenue & EPS history

Concentrix · Revenue · Quarterly

$1.47B

Q4 2021+12.7%vs Q4 2020
Beat estimate in 6 of 9 quarters(67%)
ActualEstimate

Revenue by segment

Concentrix · $1.47B total across 6 segments · Q4 2021

  • Tech & Electronics
    $481M+17.2%
  • Retail & E-comm
    $273M+14.7%
  • Comms & Media
    $245M+2.5%
  • BFSI
    $213M+15.0%
  • Healthcare
    $135M+14.3%
  • Other
    $119M+8.8%

Forward guidance

Concentrix provided its outlook for the first quarter and full year of fiscal 2022, with revenue expected to be in the range of $1.510 billion to $1.540 billion for the first quarter and $6.450 billion to $6.600 billion for the full year.

Tailwinds

  • Revenue is expected to be in the range of $1.510 billion to $1.540 billion for Q1 2022.
  • Q1 2022 revenue includes an approximately $78 million contribution from PK for the months of January and February.
  • Non-GAAP operating income is expected to be in the range of $190 million to $205 million for Q1 2022.
  • Revenue is expected to be in the range of $6.450 billion to $6.600 billion for FY 2022.
  • FY 2022 revenue includes an approximately $485 million 11-month contribution from PK.

Headwinds

  • The effective tax rate is expected to approximate 25% to 26%.
  • Non-GAAP operating income is expected to be in the range of $890 million to $930 million for FY 2022.
  • The Company believes that a quantitative reconciliation of the non-GAAP operating income outlook to the most directly comparable GAAP measure cannot be provided without unreasonable efforts.
  • The incomplete purchase price allocation for the PK acquisition and the related unavailability of the expected amortization of PK intangible assets makes reconciliation difficult.
  • Concentrix is unable to address the probable significance of the unavailable information, which may have a material impact on the Company’s GAAP results.

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 Q4 2021

Historical avgQ4 2021

+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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