WNS Earnings: Everything You Must Know Now

WNS (Holdings) Ltd. (NYSE:WNS) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 0%.

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WNS (Holdings) Ltd. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 11.11% to $0.3 in the quarter versus EPS of $0.27 in the year-earlier quarter.

Revenue: Decreased 0.47% to $112.8 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: WNS (Holdings) Ltd. reported adjusted EPS income of $0.3 per share. By that measure, the company beat the mean analyst estimate of $0.29. It missed the average revenue estimate of $114.32 million.

Quoting Management: “While currency headwinds muted our reported Q4 revenues, we continued to make progress adding new clients and strengthening our existing relationships during the quarter. Both financially and operationally, fiscal 2013 represented a solid step forward for WNS. Our revenue less repair payments* grew 10.4%, which represented 11.2% improvement on a constant currency* basis. This is compared to 6.9% growth, or 5.3% constant currency* growth posted in fiscal 2012. Revenue growth in 2013 also included approximately $10.0 million, or 2.6% from the acquisition of Fusion, South Africa. In addition to driving revenue improvement during the year, the company was able to invest in geographic expansion, technology-enablement, domain expertise and the creation of new services while growing our adjusted net income* faster than revenue less repair payments*,” said Keshav Murugesh, WNS’s Chief Executive Officer.

“As we enter fiscal 2014, the demand environment for BPO is stable and healthy and we are excited about our differentiated positioning and the opportunity to accelerate business momentum. While ongoing investments will be required to capitalize on the long-term BPO growth trends, WNS believes that by successfully executing on our key strategies we will be able to grow revenue at or above industry rates and expand our margins.”

Key Stats (on next page)…

Revenue decreased 6.13% from $120.17 million in the previous quarter. EPS increased 11.11% from $0.27 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 $0.26 and has not changed. For the current year, the average estimate has moved down from a profit of $1.02 to a profit of $1.01 over the last ninety days.

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