NEWARK, Calif. - Concentrix Corporation (NASDAQ:CNXC) reported fourth quarter earnings that beat analyst expectations, but shares fell sharply in after-hours trading as the company's guidance came in below estimates.
The technology and services provider posted adjusted earnings per share of $3.26, surpassing the consensus forecast of $3.08. Revenue for the quarter rose 9.7% year-over-year to $2.45 billion, slightly ahead of analyst projections of $2.44 billion.
However, Concentrix's outlook for the first quarter and full year 2025 disappointed investors. The company expects Q1 EPS between $2.49 and $2.64, below the $2.85 consensus. Q1 revenue guidance of $2.355-$2.37 billion also fell short of the $2.409 billion analysts were anticipating.
For fiscal 2025, Concentrix forecasts EPS of $11.18-$11.77, compared to the $11.97 consensus estimate. Full-year revenue is projected at $9.47-$9.61 billion, below expectations of $9.726 billion.
The weaker-than-expected guidance sent shares tumbling 6.47% in after-hours trading following the earnings release.
"We continue to achieve strong results across key areas of growth in our business while repurchasing shares, reducing our leverage and supporting our dividend," said Chris Caldwell, Concentrix President and CEO. "Strategically, we continue to execute our plan for growth and market expansion while delivering value to shareholders."
Concentrix noted it has seen its investments in its GenAI product suite generate more than a dozen wins only weeks after launch. The company also said it continues to secure large, transformative client wins.
For the fourth quarter, revenue from the technology and consumer electronics segment grew 4% YoY to $685.8 million. The retail, travel and e-commerce segment saw 20% growth to $616.3 million.
The company returned approximately $220 million to shareholders through dividends and share repurchases in fiscal 2024 while reducing debt by about $209 million. Concentrix's board also increased its share repurchase authorization to $600 million.
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