Concentrix Corporation (NASDAQ: CNXC) saw its stock plunge more than 16% pre-market on Friday after reporting third-quarter earnings that missed expectations, despite revenue coming in ahead of guidance and management raising its full-year outlook.
The company posted adjusted earnings per share of $2.78 for the quarter ended August 31, below analyst forecasts of $2.86. Revenue totaled $2.48 billion, above expectations of $2.46 billion and up 4% year-on-year. On a constant currency basis, revenue rose 2.6%, exceeding guidance.
Profitability remained a concern for investors as the adjusted operating margin fell to 12.3% from 13.9% a year ago, while adjusted EBITDA margin declined to 14.5% from 16.3%.
Looking ahead, Concentrix projected fourth-quarter revenue between $2.525 billion and $2.550 billion, representing 1.5%–2.5% constant currency growth. Full-year revenue guidance was raised to $9.798 billion–$9.823 billion, equating to constant currency growth of 1.75%–2.0%.
