Earnings Alerts

Cap Gemini SA (CAP) Earnings: FY Operating Margin Below Expectations Amidst Stable Revenue

By February 18, 2025 No Comments
  • Capgemini’s operating margin for the fiscal year stood at 13.3%, matching the previous year but slightly below the estimated 13.4%.
  • Total revenue reached €22.10 billion, marginally exceeding the estimate of €22.06 billion, yet reflecting a 1.9% decrease compared to the previous year.
  • North America revenue met expectations, totaling €6.19 billion.
  • UK and Ireland revenue was €2.75 billion, slightly above the estimated €2.74 billion.
  • In France, revenue was €4.38 billion, slightly below the estimate of €4.41 billion.
  • Revenue from the rest of Europe was €6.85 billion, narrowly missing the forecast of €6.88 billion.
  • Asia Pacific and Latin America revenue reached €1.92 billion, surpassing the estimate of €1.87 billion.
  • Net income was €1.67 billion, a 0.5% increase year-over-year, but below the forecast of €1.69 billion.
  • Normalized earnings per share (EPS) were €12.23, down from €12.44 the previous year, though above the estimate of €11.57.
  • Dividend per share was reported at €3.40, under the expected €3.49.
  • Fourth-quarter bookings were at €6.81 billion.
  • For the year forecast, Capgemini projects an operating margin between 13.3% and 13.5%, compared to the estimate of 13.7%.
  • Revenue in constant currency is anticipated to range from a 2% decrease to a 2% increase, compared to the forecasted rise of 1.79%.
  • Organic free cash flow is expected to be about €1.9 billion, beneath the estimated €1.96 billion.

A look at Cap Gemini SA Smart Scores

FactorScoreMagnitude
Value2
Dividend2
Growth4
Resilience3
Momentum3
OVERALL SMART SCORE2.8

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 offering computer and management consulting services, has received varying Smart Scores across different criteria. With a Growth score of 4, the company appears to have a bright future in terms of expanding its operations and potentially increasing revenue streams. Additionally, both its Resilience and Momentum scores stand at 3, indicating a stable performance and a steady upward trend in the market.

However, Cap Gemini SA‘s Value and Dividend scores, both at 2, suggest that the company may not be currently undervalued or offering high dividend yields compared to its industry peers. Despite these lower scores, the overall outlook for Cap Gemini SA seems positive, especially considering its strong presence serving customers in various industries across different regions worldwide.

Summary: Cap Gemini SA is a company that provides consulting services in the fields of computer and management. Operating across diverse industries such as petroleum, financial services, automotive, aerospace, and telecommunications, the company serves clients in Europe, the United States, Asia, and South Africa.


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.
Have feedback on this article? Concerned about the content? Get in touch with us directly.


 

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Analytics and News
  • ✓ Events & Webinars