WNS Holdings Stock Plunges Today | The Motley Fool
Business process management company lowered its full-year outlook despite posting solid quarterly results. Here’s what investors need to know.
Business process management company lowered its full-year outlook despite posting solid quarterly results. Here’s what investors need to know.
WNS Holdings Stock Plunges Today | The Motley Fool
wns hold (nyse:wns) plunged thursday after the business process management (bpm) solutions company announced solid fiscal second-quarter results but lowered its full-year guidance.
On a non-gaap adjusted basis, excluding one-time payments related to the repair of a data center fault, revenue climbed 11% year over year to $288.9 million. that translated to adjusted net income of $31.2 million, or $1.02 per share. analysts had expected adjusted earnings per share of $1.01 on slightly lower revenue.
wns’s strong results came despite some macro headwinds. revenue growth was driven by a combination of new client wins, expanded relationships with existing clients, acquisitions, and favorable currency exchange movements. these tailwinds offset volume reductions from clients as well as the ramp-down of a large healthcare process in recent quarters.
wns ceo keshav murugesh praised the company’s performance despite the challenging macro environment. he noted that the company is making progress on its artificial intelligence (ai)-driven ai generate ai initiative. murugesh added that wns continues to believe that ai technology represents both an opportunity and a risk for businesses.
however, management also anticipates top-line pressures in the second half of the fiscal year ending march. based on current visibility levels and exchange rates, wns expects reduced volumes from committed clients, lower project revenues, and delayed ramps of large insurance captives relative to previous guidance assumptions. wns reduced its full-year outlook, calling for adjusted revenue growth of 9% to 11%, compared with previous guidance of 13% to 15%.
wns’s stock responded in kind today. while wns is showing tangible signs of reaccelerating growth, i wouldn’t blame investors for putting their money to work in a number of more promising stocks.