WNS Q3 Earnings Surge, Beat Estimates, Sees Better Revenue In FY14

(RTTNews) - WNS (Holdings) Ltd. (WNS), a provider of global Business Process Management services, Wednesday reported a rise in third-quarter earnings as revenue grew by 5.8 percent. Earnings also topped Street View. In addition, the company updated its revenue outlook for fiscal year 2014 and now expects higher revenue than last year.

Earnings for the quarter rose to $12.2 million, or $0.23 per share, from $6.1 million, or $0.12 per share, a year ago.

Excluding amortization and share-based compensation expenses, earnings increased to $19.8 million, or $0.38 per share, from $14 million, or $0.27 per share, a year earlier. On average, ten analysts polled by Thomson-Reuters estimated the earnings of the company to be $0.36 for the quarter. Analysts's estimates typically exclude one-time items.

Revenue for the 3-month period grew to $127.1 million from $120.2 million last year. Analysts had expected revenue of $120.21 million for the third quarter.

The company said, "We believe recognition of our competitive positioning is improving as the BPM industry shifts towards domain-led solutions and higher value service offerings. WNS plans to continue investing in enhancing our capabilities to meet the evolving needs of our clients, with the objective of growing our organic revenues at or above industry levels."

For the fiscal year ending March 31, WNS updated revenue guidance to $470 million - $472 million. The company reported revenue of $426.1 million in fiscal 2013. Analysts estimate revenue for the year to be $473.18 million. Adjusted net earnings are expected to range between $70 million and $72 million for 2014.

Furthermore, the company expects that profitability will expand at a much greater pace than revenue for the fiscal year.

Tuesday, the stock closed at $21.42 on the NYSE.