Concentrix Corp (NASDAQ:CNXC) Posts Solid Results

Concentrix Corp (NASDAQ:CNXC) stock rose 1.53% (As on Jan 19, 11:23:23 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the fourth quarter of FY 21. The company has recently closed its acquisition of PK and is on track integrating the complementary PK acquisition. This further differentiates the unmatched CX capabilities and industry-leading execution. This transaction marked Concentrix’ first acquisition since becoming a publicly traded company. The acquisition supports Concentrix’ strategy of investing in digital transformation to deliver exceptional customer experiences and will further the company’s ability to scale digital capabilities faster while building excellence in key high growth areas of CX Design & Development, AI, Intelligent Automation and Customer Loyalty.

Further, Non-GAAP operating income was $203.4 million, or 13.9% of revenue, compared with $175.4 million, or 13.5% of revenue, in the prior year fourth quarter. Adjusted EBITDA was $238.2 million, or 16.2% of revenue, compared with $211.2 million, or 16.2% of revenue, in the prior year fourth quarter. The company generated cash flow from operations was $182.1 million in the quarter. Free cash flow generated for the quarter was $145.8 million.

CNXC in the fourth quarter of FY 21 has reported the adjusted earnings per share of $2.99, beating the analysts’ estimates for the adjusted earnings per share of $2.71. The company had reported the adjusted revenue growth of 12.7 percent to $1.47 billion in the fourth quarter of FY 21, beating the analysts’ estimates for revenue of $1.46 billion.

The company expects full-year 2022 revenue to fall in the range of $6.45 billion to $6.6 billion. Analysts polled by Capital IQ expect $6.32 billion. Revenue for fiscal Q1 is pegged in the $1.51 billion to $1.54 billion range, which compares with Capital IQ analysts’ estimate of $1.53 billion. For first quarter of 2022, the company expects Non-GAAP operating income to be in the range of $190 million to $205 million and for fiscal 2022, it expects Non-GAAP operating income is expected to be in the range of $890 million to $930 million.

The company’s board maintained its quarterly dividend at $0.25 per share, payable Feb. 8 to shareholders of record on Jan. 28. Concentrix repurchased 0.1 million shares in the fourth quarter at a cost of $25.1 million under its previously announced share repurchase program. At November 30, 2021, the Company’s remaining share repurchase authorization was $474.9 million.

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