Wns Holdings Limited (WNS)

WNS Holdings Limited ADR (WNS) stock dropped by 7.38% after Deutsche Bank adjusted its outlook for the company, reducing the price target from $70.00 to $64.00. The revision came in response to WNS disclosing the loss of a top 5 customer, leading the bank to update its revenue growth expectations for FY25 to approximately 4.6% on a constant currency basis, which is currently the lowest estimate among analysts.

• Deutsche Bank's Revised Outlook: Deutsche Bank acknowledges the macroeconomic and unique challenges WNS is facing and does not anticipate an improvement in IT services spending for the calendar year 2024. Despite these challenges, Deutsche Bank has maintained its FY24 earnings projections and revised its FY25 and FY26 earnings per share (EPS) estimates downward to $4.51 and $5.09, respectively.
• Potential for Growth: The analyst from Deutsche Bank suggests that WNS could see a significant pickup in growth in the latter half of FY25, contingent on favorable conditions such as an increase in discretionary demand, travel volumes, and the ramp-up of insurance captive. The firm anticipates that WNS may set initial growth guidance with the upper end in the high single digits on a constant currency basis.
• New Price Target and Buy Rating: Deutsche Bank has set the new price target at $64, approximately 13 times the projected CY25 EPS, reflecting the recent decline in peer group valuation multiples. Despite the customer loss and other headwinds, the Buy rating is maintained, indicating the firm's continued confidence in WNS's stock.

WNS Holdings Limited ADR (WNS) stock dropped by 15.32% due to the disclosure in its Form 6-K filed with the SEC regarding a significant development. One of WNS's top five customers, accounting for a substantial portion of revenue, served a termination notice on January 31, 2024. While this termination will be effective on July 1, 2024, it does not impact the company's revenue in fiscal 2024. WNS is currently in discussions with the customer regarding the transition of services and is assessing the associated financial and accounting implications.

WNS (Holdings) Ltd Stock (WNS) dropped by 18.65% from $68.69 to $55.88 in the trading on Thursday October 19, 2023. The reason why WNS stock down today is due to the Q2 FY24 results and lowered FY24 outlook.

• Revenue, less repair payments, of $325M, up 12.3% Y/Y, marginally missing the consensus of $325.56 million.
• Adjusted EPS of $1.09, up 16% Y/Y, topped the consensus of $1.03.
• FY24 Outlook: WNS lowered the outlook for adjusted revenue to $1.254B - $1.300B vs. consensus of $1.33B and adjusted EPS to $4.04 - $4.24 (from $4.21-$4.45) vs. street view of $4.34.