This business process outsourcing (BPO) company beat Wall Street’s estimates on both revenues and earnings, in the last quarter. The company’s management said for 2015, “We expect revenues to be in the range of $2.46 to $2.50 billion. We expect 2015 adjusted operating income margins to be approximately 15.0%.”
Genpact Limited (G)
from The Buyback Letter
Genpact Limited (G) stands for “generating business impact.” G is a global leader in designing, transforming and running intelligent business operations. It helps clients grow and manage cost, risk, and compliance across a range of functions such as finance and procurement, financial services account servicing, claims management, regulatory affairs, and industrial asset optimization. Long-term clients include more than one-fourth of the Fortune Global 500.
Genpact began in 1997 as a business unit within General Electric and in 2005 it became an independent company, seeking to apply GE’s industrial engineering ethos to help other businesses reimagine how they operate. It went public in 2007.
Since 2005, it has expanded from 19,000+ employees and annual revenues of $491.90 million to 67,000+ employees and annual revenues of $2.28 billion (as of December 31, 2014). Bain Capital became Genpact’s largest shareholder in November 2012, with the strategic objective to grow the company further.
Q4 profit was 21 cents per share; earnings were 26 cents per share, exceeding Wall Street expectations by 2 cents a share. Net income was $45.8 million. For the year, the company reported profit of $192 million, or 85 cents per share.
G reduced shares outstanding by 5.90% in the past 12 months.
David R. Fried, The Buyback Letter, www.buybackletter.com, 888-289-2225, March 3, 2015