Earnings Alerts

Cap Gemini SA (CAP) Earnings: 2024 Operating Margin Forecast and Q4 Results Released

By February 14, 2024 No Comments
  • Capgemini’s operating margin for 2024 is forecasted to be between 13.3% and 13.6%, compared to the estimate of 13.4%.
  • The company’s revenue in constant currency is expected to be between 0% and +3%, which is slightly lower than the estimate of +3.08%.
  • The organic free cash flow (FCF) is anticipated to be around EU1.9 billion, lower than the estimated EU2.03 billion.
  • In the fourth quarter, sales at constant exchange rates were -0.2%, slightly better than the estimated -0.3%.
  • Revenue for UK & Ireland at constant exchange rates was +2.7%, just under the estimate of +2.99%.
  • Bookings for 2023 reached EU6.64 billion.
  • The operating margin for 2023 was 13.3%, a slight increase from 13% the previous year and slightly above the estimated 13.1%.
  • Total revenue for 2023 was EU22.52 billion, a 2.4% increase year-on-year, but slightly lower than the estimated EU22.58 billion.
  • Revenue from North America was EU6.46 billion, just under the estimate of EU6.5 billion.
  • UK & Ireland revenue matched the estimate at EU2.71 billion.
  • France’s revenue was EU4.54 billion, slightly higher than the estimated EU4.52 billion.
  • Revenue from the rest of Europe was EU6.84 billion, slightly above the estimate of EU6.82 billion.
  • Asia Pacific and Latin America revenue was EU1.98 billion, slightly higher than the estimated EU1.97 billion.
  • Net income for 2023 was EU1.66 billion, a 7.5% increase year-on-year, but slightly less than the estimated EU1.68 billion.
  • Normalized earnings per share (EPS) were EU12.44, a significant increase from EU11.09 the previous year and above the estimated EU11.64.
  • The dividend per share was EU3.40, slightly higher than the estimated EU3.39.
  • The CEO stated that the group is well-equipped to improve its performance in 2024, despite an expected soft environment in the first half of the year.
  • As of December 31, 2023, Capgemini had a total headcount of 340,400, a 5% decrease year-on-year.

A look at Cap Gemini SA Smart Scores

FactorScoreMagnitude
Value2
Dividend1
Growth4
Resilience3
Momentum5
OVERALL SMART SCORE3.0

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Cap Gemini SA, a company that provides computer and management consulting services, has received a positive outlook for its long-term future based on the Smartkarma Smart Scores. The scores, which range from 1 to 5, show that Cap Gemini SA has strong momentum and growth potential with a score of 5 and 4, respectively. This indicates that the company is performing well and has a promising future in the market.

Additionally, Cap Gemini SA has a moderate level of resilience with a score of 3, meaning that it has the ability to withstand potential challenges and continue to succeed. However, the company has received lower scores for value and dividend with a 2 and 1, respectively. This suggests that investors may not see immediate returns or value in the company’s stock, but the positive scores in other areas bode well for its overall outlook.

In summary, Cap Gemini SA is a leading provider of computer and management consulting services that serves various industries globally. With strong scores in momentum and growth, as well as a moderate level of resilience, the company has a positive long-term outlook according to the Smartkarma Smart Scores. While the scores for value and dividend may be lower, the overall outlook for Cap Gemini SA is promising, making it a company to watch in the future.


Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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