NASDAQ$CNXC

Concentrix Corporation · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Concentrix's Q4 2023 earnings were reported, demonstrating strong results across key metrics and surpassing expectations.

Concentrix reported a strong Q4 2023, with revenue up 36.0% to $2,230.8 million. Operating income was $180.4 million, and non-GAAP operating income reached $340.8 million. Diluted EPS was $1.09, while non-GAAP diluted EPS was $3.36. The company's strategic combination with Webhelp is progressing smoothly and contributing to revenue and profit.

  • Revenue increased by 36.0% to $2,230.8 million compared to the prior year fourth quarter.
  • Operating income was $180.4 million, representing 8.1% of revenue.
  • Non-GAAP operating income was $340.8 million, or 15.3% of revenue.
  • Non-GAAP diluted EPS reached $3.36, compared to $2.80 in the prior year fourth quarter.

Headline financials

Total Revenue

$2.23B

Previous: $1.64B+36.0%
EPS (adj)

$3.36

Previous: $3.01+11.6%
Revenue Growth

36.0%

Previous: 11.9%+202.5%
Capital Expenditures

$64.8M

Previous: $42.7M+51.6%
Net Income

$69.5M

Previous: $105M-33.8%
Operating Income

$180M

Previous: $178M+1.4%
Gross Profit

$823M

Previous: $593M+38.7%
Stock-Based Comp

$23.7M

Previous: $9.74M+143.7%

Revenue & EPS history

Concentrix · Revenue · Quarterly

$2.23B

Q4 2023+36%vs Q4 2022
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

Concentrix · $1.63B total across 6 segments · Q3 2023

  • Tech & Electronics
    $528M+5.5%
  • Retail & E-comm
    $322M+7.6%
  • Comms & Media
    $252M-8.0%
  • BFSI
    $247M+5.1%
  • Healthcare
    $167M+17.0%
  • Other
    $115M-9.1%

Forward guidance

Concentrix anticipates first quarter revenue between $2.360 billion and $2.406 billion, with non-GAAP EPS expected to be in the range of $2.51 to $2.65. Full year revenue is projected to be between $9.510 billion and $9.700 billion, and non-GAAP EPS is expected to be between $11.69 and $12.50.

Tailwinds

  • First quarter revenue is expected to be in the range of $2.360 billion to $2.406 billion.
  • First quarter non-GAAP operating income is expected to be in the range of $315 million to $325 million.
  • First quarter non-GAAP EPS is expected to be in the range of $2.51 to $2.65.
  • Full year revenue is expected to be in the range of $9.510 billion to $9.700 billion.
  • Full year non-GAAP operating income is expected to be in the range of $1,390 million to $1,450 million.

Headwinds

  • First quarter expectations assume a 110 basis point negative impact of foreign exchange rates compared with the prior year period.
  • Full year expectations assume a 70-basis point negative impact of foreign exchange rates compared with the prior year.
  • Operating income for the first quarter is expected to be in the range of $158 million to $161 million.
  • The effective tax rate is expected to approximate 26% to 27%.
  • Operating income for the full year is expected to be in the range of $770 million to $800 million.

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 2023

Historical avgQ4 2023

+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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