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 business process management company Genpact Limited sank 13% this morning after its quarterly results and outlook disappointed Wall Street.
So what: The stock has slumped in recent months on concerns over slowing demand, and yesterday's Q4 results -- income fell 8.6% on revenue growth of 10% -- coupled with downbeat guidance only reinforces those worries. Management cited several headwinds including a reduction in its mortgage originations business, weakness in its GE business, and extended deal cycle times for the lackluster report, prompting analysts to lower their growth estimates yet again.
Now what: Management now sees full-year 2014 revenue of $2.22 billion-$2.26 billion with operating margins in the range of 15%-15.5%. "The fundamentals of our business and our market opportunity have not changed and we continue to believe there is a long runway for growth where our competitive advantages are clear and compelling," President and CEO N.V. Tyagarajan reassured investors. "To capture the right growth opportunities, we are accelerating our investments in our client-facing teams and solutions in specific verticals and service lines." More important, with the stock now off more than 30% from its 52-week highs and trading at a forward P/E of around 10, betting on that bullishness might not be a bad idea.
More reliable ways to build wealth
One of the dirty secrets that few finance professionals will openly admit is the fact that dividend stocks as a group handily outperform their non-dividend-paying brethren. The reasons for this are too numerous to list here, but you can rest assured that it's true. However, knowing this is only half the battle. The other half is identifying which dividend stocks in particular are the best. With this in mind, our top analysts put together a free list of nine high-yielding stocks that should be in every income investor's portfolio. To learn the identity of these stocks instantly and for free, all you have to do is click here now.
The article Why Genpact Limited Shares Plunged originally appeared on Fool.com.Brian Pacampara has no position in any stocks mentioned, and neither does The Motley Fool. 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.
Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.