ExlService Holdings Comes In Ahead Of Expectations

JP Morgan has published a research report on ExlService Holdings, Inc. EXLS following the release of 3Q results that came in ahead of expectations across the analyst board. In the report, JP Morgan writes "EXLS 3Q10 results were well ahead of our and consensus expectations, driven by strong growth in both outsourcing and transformation businesses. The company also increased its FY10 revenue/adj. margin guidance by more than the beat, but we believe the new guidance could still be conservative pending what we learn on the call tomorrow. We expect an increase in Street CY10 and CY11 estimates after the call and believe the company has firmly established itself as a growth leader in the offshore BPO space. We expect a positive stock price reaction and still prefer EXLS over G/WNS. However, EXLS' high valuation (trades at 27x our CY11 ests. vs. mid-to-high teens for peers) keeps us at N. Conf. call at 8:00AM, 877-303-6384. EXLS also hosts its analyst day at 10am [Thursday]." JP Morgan maintains its Neutral rating on ExlService Holdings, which closed yesterday at $19.07.