WNS Holdings stock drops 4% as FY guidance disappoints despite strong Q2

NEW YORK – WNS (NYSE:WNS) Holdings Limited (NYSE:WNS) reported better-than-expected second quarter results on Thursday, but provided full-year guidance that fell short of analyst expectations.

WNS shares were trading 4.9% lower following the report.

The digital-led business transformation services provider posted adjusted earnings per share of $1.13 for the fiscal 2025 second quarter ended September 30, beating the analyst consensus of $0.99. Revenue came in at $322.6 million, surpassing estimates of $313.26 million.

However, WNS lowered its full-year outlook, now expecting fiscal 2025 adjusted earnings per share between $4.13 and $4.35, below the $4.51 consensus. The company forecasts revenue of $1.25 billion to $1.296 billion for the year, also missing analyst projections of $1.309 billion.

“Second quarter revenue and margin were largely in line with company expectations, while EPS came in above forecast as a result of a one-time tax benefit,” said Keshav Murugesh, WNS Chief Executive Officer.

Murugesh noted that demand for digitally-led business transformation and cost reduction remains robust, but challenges persist in online travel volumes and project-based revenues. The company has removed expected revenue contributions from large deals from its fiscal 2025 guidance due to less visibility on deal conversions and associated revenue ramps.

Revenue less repair payments, a key metric, declined 4.4% year-over-year to $310.7 million in Q2. On a constant currency basis, it fell 5.2%.

WNS ended the quarter with $221.5 million in cash and investments and $262.8 million in debt. The company repurchased over 1.15 million shares at an average price of $56.61 during Q2.

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