Why Exlservice Holdings Shares Got Crushed
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Exlservice Holdings (NAS: EXLS) got crushed today by as much as 12%, after the company reported earnings results.
So what: Revenue in the third quarter rose 13%, to $112.6 million, resulting in adjusted earnings per share of $0.42. On a constant currency basis, that translated into revenue growth of 17%. CEO Rohit Kapoor also said that EXL scored a new strategic client account with a leading specialty insurer.
Now what: EXL landed six new clients during the quarter, including three transformational clients and three outsourcing clients. The company also updated its full-year 2012 outlook, now expecting revenue in the range of $442 million and $444 million. That should translate into adjusted earnings per share of $1.54 to $1.57, accounting for a rupee to dollar exchange rate of 53.5, as well as the recent acquisition of Landacorp.
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The article Why Exlservice Holdings Shares Got Crushed originally appeared on Fool.com.Evan Niu, CFA, has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.