Endava shares slide 6% as Q4 earnings miss estimates

LONDON - Endava plc (NYSE:DAVA ) shares are down 6.5% Thursday after the technology services company reported fourth quarter earnings and revenue that missed analyst expectations.

The company posted adjusted earnings per share of £0.22 for the quarter ended June 30, below the consensus estimate of £0.23. Revenue came in at £194.4 million, up 2.4% YoY but short of the £195.7 million analysts were expecting.

"Looking back, the past fiscal year has been challenging for Endava with our revenue declining by 4.5% in constant currency as a result of significant headwinds across the business, in particular due to our exposure to the UK market and Payments industry vertical," said CEO John Cotterell.

For the full fiscal year 2024, Endava reported revenue of £740.8 million, down 6.8% from £794.7 million in fiscal 2023. Adjusted profit for the year fell to £66.0 million from £132.4 million the previous year.

Looking ahead, Endava forecast first quarter fiscal 2025 revenue of £194-195 million, representing constant currency growth of 4.5-5.0% YoY. For the full fiscal year 2025, the company expects revenue of £800-810 million, implying 10.0-11.5% constant currency growth.

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Source: Investing.com