Concentrix Corporation (NASDAQ: CNXC) is scheduled to release its Q3 2021 earnings on Monday, September 27, 2021.
What to look for
During Concentrix’s earnings release, CEO Chris Caldwell said that the company's value proposition is resonating with the market to drive performance to surpass pre-pandemic levels. Caldwell said that the reopening of economies accelerated demand for the company's CX transformation services across new and current clients. The new business wins with leading and disruptive customers globally will continue to reflect in earnings growth once the company releases the Q3 report.
Earnings: Stockearning’s Estimated EPS will be $2.11 per share for the quarter, and analysts are holding for EPS of $9 for fiscal 2021. Historical EPS Performance for the past 12 quarters shows the company has topped estimated twice (66%) and missed zero times (0%). In the second quarter, the company reported EPS of $2.37, topping estimates by $0.1 per share.
Revenue: In Q2, the company reported revenue of $1.37 billion, topping consensus estimates of $1.36 billion. For fiscal 2021 the company expects more than 10% revenue growth, with margins exceeding pre-pandemic levels. For Q3 2021, the company expects revenue of between $1.35 billion and $1.4 billion, with operating income ranging between $116.3 million and $130.3 million.
Stock movement: Since the last earnings release, the stock has gained 6.4% from $156.87 to the previous close price of $166.88. Following the earnings release, the share price was UP six times in the past eight quarters. So, the Historical price reaction suggests a 75% chance of share price going up following earnings release. According to the Stockearning algorithm, the predicted first-day move is 4%, and the predicted move on the seventh day following earnings release is 5%.
What analysts are saying
Barrington analysts Vincent Colicchio commenced coverage in Concentrix with a “Buy” rating and a price target of $182. According to Colicchio, Concentrix is targeting the customer relations management services market globally, which is currently underpenetrated. In addition, Colicchio expects the company’s growth to considerably increase this year thanks to an improving business environment.
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