TaskUs Faces Future Uncertainties Amidst Strong Q2 Performance: Analyst Cautions On FY23 Forecast

RBC Capital Markets analyst Daniel R. Perlin downgraded TaskUs Inc TASK to Sector Perform from Outperform at a lowered price target of $16 from $21.

The analyst is bearish on the stock following Q2 FY23 results as the company's Q3 and FY23 revenue guidance is below estimates.

Yesterday, the company reported sales of $229.17 million, beating the consensus of $226.69 million, and adjusted EPS of $0.32 exceeded the street view of $0.30.

TASK issued Q3 revenue guidance of $220 million-$222 million vs. a consensus of $228.73 million and lowered FY23 revenues outlook to $900 million-$910 million from $925 million-$950 million.

Given continued macroeconomic pressures and the decline in peer valuations, the analyst reduced FY23 revenue and adjusted EBITDA estimates to $908 million (from $935 million) and $207 million ($220 million), respectively, and FY24 estimates to $935 million (from $1,001 million) and $216 million (from $242 million), respectively. 

The analyst also lowered adjusted EPS estimates to $1.24 (from $1.36) for FY23 and $1.33 (from $1.55) for FY24. 

Price Action: TASK shares are trading lower by 12.2% at $10.52 on the last check Thursday.