The Globant actions They collapsed this Friday in Wall Street, With one fall close to 24%after the Argentine Unicorn report results below market expectations for the first quarter and present a weak guide for the rest of the year. But why the market reacted with a strong sales wave?
Globant papers backed up a 23.6% Au $ s101.47after register at the start of the wheel a decrease of up to 33%, After the dissemination of a balance that It generated strong concern among investors.
This fall He reduced his stock market capitalization in almost US $ 1,400 milliongoing from US $ 5,852 million on Thursday to US $ 470 million this Friday.
The company reported a Action benefit (BPA) adjusted of US $ 15,50below the market consensus of U $ S1.60. Meanwhile, the income reached US $ 611.1 millionwith an interannual rise of 7%, but below the US $ 625 million expected by analysts.
A weak guide on the future that did not convince the market
Beyond the lazy quarterly performance, Company’s prospects also defrauded. For the second quarter, Globant projects at least U $ S612 million and an adjusted BPA of U $ S1,52figures that are below market forecasts, of US $ 641.5 million YU $ S1.65, respectively.
Facing fiscal year 2025, the Argentine firm anticipates income from U $ 2,464 million and an adjusted BPA of U $ S6,10which also involves a cut in the face of the expectations of U $ 2,636 million and U $ S6,82.
The US banks worsened perspectives
The negative market reaction also translated into scrolls by investment banks. From JP Morganthe analyst Tie-Tsin Huang The objective price of Globant shares from U $ S146 to U $ s108although he maintained the recommendation to “overcome.” The review was based on the results below the expected and a correction in future income projections.
For its part, Goldman Sachs It was more drastic: he reduced his “purchase” to “neutral” rating and adjusted its target price to U $ S120from the previous U $ 225.
Currently, Globant’s action quotes around U $ S132.84with a stock market capitalization near the U $ S5,850 million.
Operational data and regional context
In its presentation, the company reported that it currently provides services to 1.004 customers with higher income AU $ S100,000 In the last 12 months, and that 341 accounts exceed one million dollars Annual, a growth compared to 318 of the previous year.
However, deceleration in discretionary projects, especially in key markets such as Brazil and Mexicoimpacted the growth rate. Some analysts attribute this brake, in part, to the effect of duty on certain technological services in the region.
Despite sustaining an interannual growth of 11.9% in the last twelve months, the combination of loose results, conservative guidance and deterioration of the global economic environment caused the market to penalize Globant harshly, which now faces the challenge of recovering the confidence of investors.
Source: Ambito
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