CI&T (NYSE:CINT) Posts Earnings Results, Misses Expectations By $0.01 EPS

CI&T (NYSE:CINT) released its earnings results on Wednesday. The company reported $0.09 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.10 by ($0.01), reports. CI&T had a net margin of 6.33% and a return on equity of 11.99%. The firm had revenue of $146.30 million during the quarter, compared to analyst estimates of $146.15 million.

Here are the key takeaways from CI&T’s conference call:

• CI&T reported record Q3 revenue of $146.3 million, up 14.9% year over year and entirely organic, ahead of its outlook. Growth was broad-based: clients outside the top 10 grew 17.1%, faster than the 12.2% growth from its largest accounts.
• Adjusted gross margin rose 420 basis points sequentially to 36.6%, with the company crediting AI-enabled productivity and a shift toward value-based pricing. Forty percent of new Q3 engagements used value-based models, which management said generate margins 8–10 percentage points above traditional time-and-material work on average.
• Adjusted EBITDA increased 19.1% sequentially to $22.6 million, but fell 3.9% year over year, mainly due to the stronger Brazilian real; management said it would have grown 3.4% on an FX-neutral basis. The company also increased selling investment to support new offerings and growth, though it expects selling expenses as a share of revenue to decline from Q3 levels.
• CI&T raised the low end of its full-year revenue outlook to $568 million and kept its adjusted EBITDA margin outlook at 15%–17%. Its Q4 revenue range implies slower growth, however, and management cited election-related budget timing and currency volatility; it said the pipeline is 50% larger than a year ago, but some deals may convert after 2026.

CI&T Trading Up 2.0%

Shares of CINT traded up $0.06 during trading on Friday, reaching $3.15. 9,015 shares of the company traded hands, compared to its average volume of 122,037. The company has a quick ratio of 1.31, a current ratio of 1.31 and a debt-to-equity ratio of 0.15. The stock has a market cap of $424.33 million, a PE ratio of 11.26 and a beta of 0.82. The stock has a 50-day simple moving average of $3.12 and a 200-day simple moving average of $3.90. CI&T has a twelve month low of $2.80 and a twelve month high of $5.80.

Insider Activity

In other CI&T news, Director Fernando Matt Borges Martins acquired 9,116 shares of the company’s stock in a transaction on Wednesday, October 7th. The shares were bought at an average cost of $3.12 per share, for a total transaction of $28,441.92. Following the completion of the purchase, the director owned 20 shares in the company, valued at $62.40. This trade represents a -100.22% increase in their position. The purchase was disclosed in a filing with the SEC, which is accessible through this hyperlink. Insiders bought a total of 41,105 shares of company stock worth $127,888 over the last 90 days.

Wall Street Analysts Forecast Growth

CINT has been the subject of a number of research reports. Zacks Research cut shares of CI&T from a “hold” rating to a “strong sell” rating in a research note on Thursday, October 22nd. UBS Group boosted their price objective on shares of CI&T from $6.20 to $6.30 and gave the company a “buy” rating in a report on Thursday. Wedbush reissued a “neutral” rating on shares of CI&T in a report on Thursday. Weiss Ratings reiterated a “sell (d+)” rating on shares of CI&T in a research report on Friday, September 25th. Finally, JPMorgan Chase & Co. lowered their price target on shares of CI&T from $6.00 to $5.00 and set an “overweight” rating for the company in a report on Wednesday, August 12th. Seven equities research analysts have rated the stock with a Buy rating, two have given a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of “Hold” and an average target price of $6.09.

About CI&T

CI&T is a global technology and digital transformation company that helps organizations develop and improve digital products, services and operations. Its offerings include technology consulting, product design, software development, data and artificial intelligence solutions, cloud services and modernization of existing systems. Founded in Brazil in 1995, the company serves clients across multiple industries and geographies, including North America, Latin America and Europe. CI&T works with organizations on initiatives ranging from digital strategy and customer experiences to the design and implementation of technology platforms.