Endava Shares Drop 6% After Q4 Earnings Miss Estimates

LONDON – Shares of Endava plc are down 6.5% on Thursday following the technology services company’s announcement of fourth quarter earnings and revenue that fell short of analyst predictions.

For the quarter ending June 30, Endava reported adjusted earnings per share of £0.22, which is below the consensus estimate of £0.23. Revenue for the quarter stood at £194.4 million, reflecting a year-over-year increase of 2.4%, yet it still missed analysts’ expectations of £195.7 million.

CEO John Cotterell noted, “Reflecting on the past fiscal year, Endava faced significant challenges with a revenue decline of 4.5% in constant currency, primarily due to headwinds in the UK market and Payments industry vertical.”

For the complete fiscal year 2024, Endava’s revenue was reported at £740.8 million, a decrease of 6.8% from £794.7 million in fiscal 2023. Adjusted profits for the year fell to £66.0 million from £132.4 million the previous year.

Looking ahead, the company has forecasted first quarter fiscal 2025 revenue to be between £194 million and £195 million, representing constant currency growth of 4.5-5.0% year-over-year. For the entire fiscal year 2025, Endava anticipates revenue between £800 million and £810 million, indicating a constant currency growth rate of 10.0-11.5%.

This summary was generated with the assistance of AI and reviewed by an editor.