Shares of Ibex Ltd rose 8% on Tuesday after the provider of outsourced CX (customer experience) solutions raised its fiscal 2021 outlook for revenues and EBITDA. Meanwhile, Ibex’s 1Q earnings of $0.31 per share jumped 72.2% year-over-year and came ahead of analysts’ estimates of $0.16.
Ibex’s (IBEX) 1Q revenues of $108.8 million grew 14.1% from the year-ago quarter and topped the Street consensus of $101 million. Ibex’s EBITDA increased 41.8% to $15.6 million year-on-year.
Ibex CEO Bob Dechant said “Our results are a reflection of our success with New Economy clients and large blue chip clients who are shifting their customer interactions to digital. Our broad differentiated BPO [business process outsourcing] 2.0 solutions are enabling us to rapidly win strategic new logo clients across key verticals, resulting in record growth.”
As for fiscal 2021, the company raised its revenue guidance to a range of between $440 million – $443 million, up from the earlier guidance of $431 – $435 million. Ibex anticipates its fiscal 2021 adjusted EBITDA in the range of between $60.5 million – $62 million, up from the earlier guidance range of $59.5 – $61 million. (See IBEX stock analysis on TipRanks)
Following the 1Q results, Piper Sandler analyst Arvind Ramnani raised the stock’s price target to $19 (10.2% upside potential) from $18 and maintained a Buy rating. Ramnani noted that Ibex’s business model looks resilient given its stable client base and long duration contracts.
Currently, the Street has a bullish outlook on the stock with a Strong Buy analyst consensus. The average price target stands at $21, implying upside potential of about 21.8% to current levels. Shares have risen by about 12% year-to-date.
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