TaskUs slides as lower revenue forecast overshadows strong Q2

Taskus

10/08/2023 11:39

** Shares of digital services provider TaskUs  TASK.O  fall
13.27% to $10.39 premarket 
    ** Co trims FY rev guidance to $900 mln-$910 mln from $925
mln-$950 mln 
    ** Expects Q3 rev in the range of $220 mln-$222 mln, 
falling short of analysts' average estimate of $222.1 mln -
Refinitiv data
    ** TASK reports Q2 adj. EPS of 32 cents vs. Wall Street's
consensus of 30 cents 
    ** Revenue falls 7% to $229.2 mln YoY, but beats estimates
of $226.7 mln
    ** "Similar to other players in our industry, a number of
our clients in the tech space have continued to focus on driving
efficiencies, thereby reducing volume expectations for the
remainder of the year" - CEO Bryce Maddock
    ** Post results, RBC and Citigroup reduce their PT 
    ** Five of eight brokerages rate the stock "buy" or higher,
two "hold" and one "sell"; median PT is $14.5
    ** Up to last close, stock had fallen 29.1% YTD

 (Reporting by Shashwat Chauhan in Bengaluru)
 ((Shashwat.Chauhan@thomsonreuters.com;))