Concentrix Stock Falls After Mixed Q3 Results, iX Hello GenAI Launch Annoucement

Concentrix Corp CNXC reported its third-quarter financial results after Wednesday's closing bell. Here's a look at the details from the report. 

The Details: Concentrix reported quarterly earnings of $2.87 per share, which missed the analyst consensus estimate of $2.93 by 2.05%. Quarterly revenue came in at $2.387 billion, which beat the analyst consensus estimate of $2.382 billion and represents a 46.2% increase over the same period last year.

The company reported operating income of $153.2 million, a reduction year-on-year primarily due to increased amortization of intangibles and planned integration expenses associated with the company’s combination with Webhelp, which closed in the fourth quarter of 2023.

Read Next: What’s Going On With Snowflake Stock?

Concentrix also announced the launch of iX Hello, a generative AI-powered solution for organizations to boost productivity and engagement within an on-brand, secure environment. iX Hello marks the first product launch in a suite of AI and GenAI technologies which the company has already deployed internally and with pre-launch clients.

“Our third quarter marked another quarter of solid revenue growth and operating results,” said Chris Caldwell, president and CEO of Concentrix.

“We are also delighted to leverage our technology investments to bring our iX Hello product to market with velocity. We believe iX Hello helps augment our existing technology partner strategies, underscores the positive transformation of our business and reflects our strong competitive position as the world’s most trusted provider of intelligent experience solutions.”

Outlook: Concentrix sees fourth-quarter revenue in a range of $2.42 billion to $2.47 billion and adjusted earnings of between $2.90 and $3.16 per share. The company sees fiscal year 2024 revenue in a range of $9.591 billion to $9.641 billion and adjusted earnings of between $11.05 and $11.31 per share.

CNXC Price Action: According to Benzinga Pro, Concentrix shares are down 14.02% after-hours at $54.70 at the time of publication Wednesday. 

Read Also:  
• What’s Going On With Intel Stock?

Photo: Shutterstock