Aug 31, 2021

Concentrix Q3 2021 Earnings Report

Concentrix demonstrated strong financial performance, marked by double-digit revenue growth and strategic capital allocation.

Key Takeaways

Concentrix reported a strong third quarter in fiscal year 2021, with revenue up 20.1% year-over-year to $1,397.3 million. The company's operating income increased by 97.1% to $151.4 million, and diluted earnings per share rose by 136.4% to $2.08. Concentrix also announced a quarterly dividend of $0.25 per share and a $500 million share repurchase program.

Revenue increased by 20.1% year-over-year, reaching $1,397.3 million.

Operating income grew by 97.1% compared to the prior year, amounting to $151.4 million.

Diluted earnings per share significantly increased to $2.08, a 136.4% rise.

A quarterly dividend of $0.25 per share was declared, alongside a $500 million share repurchase program.

Total Revenue
$1.4B
Previous year: $1.16B
+20.1%
EPS
$2.49
Previous year: $0.88
+183.0%
Revenue Growth
20.1%
Previous year: 0.2%
+9950.0%
Gross Profit
$481M
Previous year: $413M
+16.7%
Cash and Equivalents
$154M
Previous year: $97.1M
+58.8%
Free Cash Flow
$50.9M
Previous year: $54.4M
-6.4%
Total Assets
$5.01B

Concentrix

Concentrix

Concentrix Revenue by Segment

Forward Guidance

Concentrix expects fourth quarter revenue to be in the range of $1.44 billion to $1.48 billion. Operating income is expected to be in the range of $149.6 million to $159.6 million, and non-GAAP operating income is expected to be in the range of $195.0 million to $205.0 million. The effective tax rate is expected to approximate 27% to 28%.

Positive Outlook

  • Revenue is expected to be in the range of $1.44 billion to $1.48 billion.
  • Operating income is projected between $149.6 million and $159.6 million.
  • Non-GAAP operating income is anticipated to be in the range of $195.0 million to $205.0 million.
  • The company anticipates an effective tax rate of 27% to 28%.
  • Company expects above-market adjusted constant currency revenue growth to approximate 17 percent with meaningful profit margin expansion above pre-COVID levels.

Revenue & Expenses

Visualization of income flow from segment revenue to net income