Exlservice Holdings Earnings: Here’s Why Investors Don’t Like These Results

Exlservice Holdings, Inc. (NASDAQ:EXLS) delivered a profit and met Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 5.20%.

Exlservice Holdings, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 2.78% to $0.37 in the quarter versus EPS of $0.36 in the year-earlier quarter.

Revenue: Rose 7.38% to $116 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Exlservice Holdings, Inc. reported adjusted EPS income of $0.37 per share. By that measure, the company missed the mean analyst estimate of $0.37. It beat the average revenue estimate of $115.92 million.

Quoting Management: Rohit Kapoor, Vice Chairman and CEO, commented: “As expected, our second quarter revenues were flat sequentially, despite a currency headwind and project-based spending in transformation services not picking up as much as we had expected. On a constant currency basis, our reported revenues would have been higher by $1 million.”

Key Stats (on next page)…

Revenue decreased 0.01% from $116.01 million in the previous quarter. EPS decreased 7.5% from $0.40 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.47 and has not changed. For the current year, the average estimate has moved down from a profit of $1.81 to a profit of $1.77 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)