Let’s dig into the relative performance of Concentrix (NASDAQ: CNXC) and its peers as we unravel the now-completed Q3 business process outsourcing & consulting earnings season.

The sector stands to benefit from ongoing digital transformation, increasing corporate demand for cost efficiencies, and the growing complexity of regulatory and cybersecurity landscapes. For those that invest wisely, AI and automation capabilities could emerge as competitive advantages, enhancing process efficiencies for the companies themselves as well as their clients. On the flip side, AI could be a headwind as well as the technology could lower the barrier to entry in the space and give rise to more self-service solutions. Additional challenges in the years ahead could include wage inflation for highly skilled consultants and potential regulatory scrutiny on outsourcing practices—especially in industries like finance and healthcare where who has access to certain data matters greatly.

The 8 business process outsourcing & consulting stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 1.8% while next quarter’s revenue guidance was in line.

While some business process outsourcing & consulting stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 3% since the latest earnings results.

Weakest Q3: Concentrix (NASDAQ: CNXC)

With a team of approximately 450,000 employees across 75 countries, Concentrix (NASDAQ: CNXC) designs and delivers customer experience solutions that help global brands manage their customer interactions across digital channels and contact centers.

Concentrix reported revenues of $2.48 billion, up 4% year on year. This print exceeded analysts’ expectations by 1%. Despite the top-line beat, it was still a slower quarter for the company with a significant miss of analysts’ full-year EPS guidance estimates and a significant miss of analysts’ EPS guidance for next quarter estimates.

“Our ongoing growth momentum demonstrates our strong position as a trusted provider of business transformation solutions that combine CX expertise, AI and IT services globally,” said Chris Caldwell, President and CEO of Concentrix.

Unsurprisingly, the stock is down 36.9% since reporting and currently trades at $34.71.

Read our full report on Concentrix here, it’s free for active Edge members.

Best Q3: CRA (NASDAQ: CRAI)

Often retained for high-stakes matters with multibillion-dollar implications, CRA International (NASDAQ: CRAI) provides economic, financial, and management consulting services to corporations, law firms, and government agencies for litigation, regulatory proceedings, and business strategy.

CRA reported revenues of $185.9 million, up 10.8% year on year, outperforming analysts’ expectations by 3.6%. The business had an exceptional quarter with a beat of analysts’ EPS estimates and a solid beat of analysts’ revenue estimates.

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 2.4% since reporting. It currently trades at $173.53.

Is now the time to buy CRA? Access our full analysis of the earnings results here, it’s free for active Edge members.

TaskUs (NASDAQ: TASK)

Starting as a virtual assistant service in 2008 before evolving into a global digital services provider, TaskUs (NASDAQ: TASK) provides outsourced digital services including customer experience management, content moderation, and AI data services to innovative technology companies.

TaskUs reported revenues of $298.7 million, up 17% year on year, exceeding analysts’ expectations by 2.4%. It was a satisfactory quarter as it also posted a beat of analysts’ EPS estimates but revenue guidance for next quarter slightly missing analysts’ expectations.

As expected, the stock is down 11.9% since the results and currently trades at $11.

Read our full analysis of TaskUs’s results here.

CBIZ (NYSE: CBZ)

With over 120 offices across 33 states and a team of more than 6,700 professionals, CBIZ (NYSE: CBZ) provides accounting, tax, benefits, insurance brokerage, and advisory services to help small and mid-sized businesses manage their finances and operations.

CBIZ reported revenues of $693.8 million, up 58.1% year on year. This result missed analysts’ expectations by 2.2%. Zooming out, it was a satisfactory quarter as it also produced a beat of analysts’ EPS estimates but a significant miss of analysts’ revenue estimates.

CBIZ achieved the fastest revenue growth and highest full-year guidance raise, but had the weakest performance against analyst estimates among its peers. The stock is flat since reporting and currently trades at $50.44.

Read our full, actionable report on CBIZ here, it’s free for active Edge members.

FTI Consulting (NYSE: FCN)

With a team of experts deployed across 30+ countries to tackle complex business challenges, FTI Consulting (NYSE: FCN) is a global business advisory firm that helps organizations manage change, mitigate risk, and resolve disputes across financial, legal, operational, and regulatory matters.

FTI Consulting reported revenues of $956.2 million, up 3.3% year on year. This print topped analysts’ expectations by 1.2%. Overall, it was a very strong quarter as it also produced a beat of analysts’ EPS estimates and an impressive beat of analysts’ full-year EPS guidance estimates.

FTI Consulting had the slowest revenue growth among its peers. The stock is up 4% since reporting and currently trades at $162.09.

Read our full, actionable report on FTI Consulting here, it’s free for active Edge members.

Market Update

In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.

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