Capgemini, a French IT consulting firm, predicted reduced revenue growth in 2024, blaming a slow first half of the year.
Capgemini, a French IT consulting firm, anticipated weaker revenue growth for 2024, citing a sluggish first half of the year.
The Paris-based business also predicted a trough in the first quarter and a “gradual” recovery in the second quarter.
“We hope for slightly faster rebounds in the second half of the year in sectors such as financial services,” CEO Aiman Ezzat stated.
Capgemini expects its full-year revenue to be unchanged or, at best, improve by 3% in constant currency terms. It also expected an operating profit margin of 13.3% to 13.6% this year. The margin stood at 13.3% last year.
JPMorgan analysts noted in a note that both the revenue and margin outlooks are below consensus, with margin guidance leaving around 55 basis points to meet the target of around 14% in 2025.
Capgemini’s full-year sales increased 4.4% to 22.52 billion euros ($24.13 billion), falling short of its targeted 4%–7% growth as economic problems and rising geopolitical tensions contributed to a gradual market slowdown last year.
In the fourth quarter, the group’s revenue was 5.62 billion euros, a 0.2% decrease at constant exchange rates.
At the end of December, the group’s headcount was 340,400, down 5% from the previous year.
The board suggested a full-year dividend of 3.40 euros per share for 2023, up from 3.25 euros in 2022.
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