Why Business Process Management Company WNS' Shares Are Tumbling Today

WNS (Holdings) Ltd WNS shares are trading lower by around 18% after the company reported Q2 FY24 results and lowered its FY24 outlook.

The company reported revenue, less repair payments, of $325 million, up 12.3% Y/Y, marginally missing the consensus of $325.56 million. 

Adjusted EPS of $1.09, up 16% Y/Y, topped the consensus of $1.03. 

The company added seven new clients and expanded 27 existing relationships in the quarter.

WNS ended Q2 FY24 with cash and investments of $248.1 million and debt of $164.1 million. 

FY24 Outlook: WNS lowered the outlook for adjusted revenue to $1.254 billion-$1.300 billion (from $1.296 billion-$1.354 billion) vs. consensus of $1.33 billion and adjusted EPS to $4.04-$4.24 (from $4.21-$4.45) vs. street view of $4.34. 

Sanjay Puria, Chief Financial Officer, said, "The revised guidance reflects reduced volume commitments from certain clients, lower project revenues, and a delay in the ramp of our large insurance captive. We currently have 97% visibility to the midpoint of the revenue range. For the year, we expect capital expenditures of up to $60 million." 

Price Action: WNS shares are down 17.98% at $56.34 on the last check Thursday.