Earnings Preview: Globant

Globant GLOB is gearing up to announce its quarterly earnings on Thursday, 2024-11-14. Here's a quick overview of what investors should know before the release.

Analysts are estimating that Globant will report an earnings per share (EPS) of $1.62.

The market awaits Globant's announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter.

It's important for new investors to understand that guidance can be a significant driver of stock prices.

Historical Earnings Performance

The company's EPS beat by $0.01 in the last quarter, leading to a 5.08% increase in the share price on the following day.

Here's a look at Globant's past performance and the resulting price change:

Market Performance of Globant's Stock

Shares of Globant were trading at $235.22 as of November 12. Over the last 52-week period, shares are up 28.47%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analysts' Take on Globant

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Globant.

Analysts have provided Globant with 13 ratings, resulting in a consensus rating of Outperform. The average one-year price target stands at $231.69, suggesting a potential 1.5% downside.

Peer Ratings Comparison

The below comparison of the analyst ratings and average 1-year price targets of EPAM Sys, ASGN and DXC Technology, three prominent players in the industry, gives insights for their relative performance expectations and market positioning.

• The prevailing sentiment among analysts is an Outperform trajectory for EPAM Sys, with an average 1-year price target of $247.82, implying a potential 5.36% upside.
• For ASGN, analysts project an Neutral trajectory, with an average 1-year price target of $99.67, indicating a potential 57.63% downside.
• Analysts currently favor an Neutral trajectory for DXC Technology, with an average 1-year price target of $23.33, suggesting a potential 90.08% downside.

Summary of Peers Analysis

In the peer analysis summary, key metrics for EPAM Sys, ASGN and DXC Technology are highlighted, providing an understanding of their respective standings within the industry and offering insights into their market positions and comparative performance.

Key Takeaway:

Globant ranks first in revenue growth among its peers. It also leads in gross profit margin. However, it has the lowest return on equity.

Unveiling the Story Behind Globant

Globant SA is a next-generation IT services company that primarily assists clients with their digital transformation efforts by creating customized software for them. The company was founded in 2003 in Argentina but is currently headquartered in Luxembourg and primarily serves clients in the U.S. and Latin America. Globant's client base is relatively concentrated in the media and entertainment and financial services industries.

Financial Milestones: Globant's Journey

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

Positive Revenue Trend: Examining Globant's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 18.08% as of 30 June, 2024, showcasing a substantial increase in top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Information Technology sector.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 6.58%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of 2.19%, the company may need to address challenges in generating satisfactory returns for shareholders.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 1.46%, the company showcases effective utilization of assets.

Debt Management: Globant's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.14.

To track all earnings releases for Globant visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.