Concentrix Corp (NASDAQ: CNXC) stock rose over 5.9% on 25th March, 2021 (as of 09:46:06 UTC-4 · USD; Source: Google finance) after the company posted better than expected results for the first quarter of FY 21.
The company has delivered Non-GAAP operating income of $176.6 million, or 13.1% of revenue, compared to $144.8 million, or 12.2% of revenue, in the prior year first quarter. The company posted increase in Adjusted EBITDA to $212.6 million, or 15.7% of revenue, compared with $176.5 million, or 14.8% of revenue, in the prior year first quarter.
CNXC in the first quarter of FY 21 has reported the adjusted earnings per share of $2.29, beating the analysts’ estimates for the adjusted earnings per share of $2.08. The company had reported the adjusted revenue growth of 13.9 percent to $1.35 billion in the first quarter of FY 21, beating the analysts’ estimates for revenue of $1.28 billion.
For the second quarter of FY 21, the company expects revenue to be in the range of $1.33 billion to $1.38 billion as reported, the operating income is expected to be in the range of $114 million to $128 million, non-GAAP operating income is expected to be in the range of $160 million to $174 million and the effective tax rate is expected to approximate 27% to 28%.
For fiscal 2021, the company projected Revenue to be at or above-market organic growth, the profit is expected to return to above pre-COVID margins, completion of acquisition synergies, G&A leverage, Free cash flow is expected to be approximate non-GAAP net income and Capex is expected to be in the range of 3.5% to 4.0% of revenue.
For fiscal 2020, the company had reported revenue of $4,719.5 million, which represents an increase of 0.2% from the prior fiscal year and 0.7% on a constant currency basis, compared with $4,707.9 million in the prior fiscal year. The operating income came to be $308.8 million, or 6.5% of revenue, compared with $294.3 million, or 6.3% of revenue, in the prior fiscal year. Therefore, the Non-GAAP operating income was of $509.4 million, or 10.8% of revenue, compared to $542.0 million, or 11.5% of revenue, in the prior fiscal year. Adjusted EBITDA had fallen to $638.5 million, or 13.5% of revenue in fiscal 2020, compared with $676.8 million, or 14.4% of revenue, in the prior fiscal year. On a net basis, COVID expenses were approximately $86.0 million for fiscal year 2020.