WNS slumps after slashing FY25 results forecast

WNS (Holdings)

17/10/2024 18:11

** Shares of business support services provider WNS  WNS.N 
fall 10.4% to $44.51 
    ** Company forecasts FY rev less repair payments — an adj
revenue metric — between $1.250-$1.296 bln, lower than earlier
range of $1.290-$1.354 bln
    ** Sees FY25 adj EPS in the range of $4.13-$4.35 vs previous
range of $4.42-$4.68
    ** TD Cowen downgrades stock to "hold" from "buy", cuts PT
to $53 from $64 
        ** Brokerage says co's assumption of large deal
conversions impacting FY25 growth forecast misses mark,
resulting in outlook cut; large client pressures and guide
volatility driving investor fatigue
    ** Market fear of the impact of generative AI on business
processing outsourcing companies also pressuring stock — TD
Cowen
    ** Avg rating of 11 analysts covering WNS is a "buy"; median
PT at $61.50 — LSEG data
    ** Including session's losses, stock down about 30% YTD

 (Reporting by Sukriti Gupta in Bengaluru)
 ((Sukriti.Gupta@thomsonreuters.com))