Data analytics and digital solutions company ExlService Holdings (NASDAQ: EXLS) will be reporting earnings this Tuesday after the bell. Here’s what to look for.
EXL beat analysts’ revenue expectations last quarter, reporting revenues of $594.8 million, up 15.6% year on year. It was a very strong quarter for the company, with full-year revenue guidance beating analysts’ expectations and a beat of analysts’ EPS estimates.
Is EXL a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting EXL’s revenue to grow 16% year on year, improving from the 12.2% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. EXL has a history of exceeding Wall Street’s expectations.
Looking at EXL’s peers in the professional services segment, some have already reported their Q3 results, giving us a hint as to what we can expect. SS&C delivered year-on-year revenue growth of 7.8%, meeting analysts’ expectations, and Equifax reported revenues up 9.6%, in line with consensus estimates. SS&C traded down 7.3% following the results while Equifax was up 10.7%.
Read our full analysis of SS&C’s results here and Equifax’s results here.
There has been positive sentiment among investors in the professional services segment, with share prices up 3.7% on average over the last month. EXL is up 22.2% during the same time and is heading into earnings with an average analyst price target of $45.13 (compared to the current share price of $42.29).
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