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

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

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 Stock Up 0.3%

CI&T stock traded up $0.01 during midday trading on Friday, reaching $3.10. The stock had a trading volume of 19,851 shares, compared to its average volume of 122,118. The firm’s fifty day simple moving average is $3.12 and its 200-day simple moving average is $3.90. CI&T has a 1-year low of $2.80 and a 1-year high of $5.80. The stock has a market capitalization of $417.20 million, a P/E ratio of 11.11 and a beta of 0.82. The company has a debt-to-equity ratio of 0.15, a quick ratio of 1.31 and a current ratio of 1.31.

Wall Street Analyst Weigh In

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

Insider Buying and Selling

In other CI&T news, Director Fernando Matt Borges Martins bought 9,116 shares of the firm’s stock in a transaction that occurred on Wednesday, October 7th. The stock was acquired at an average price of $3.12 per share, with a total value of $28,441.92. Following the completion of the transaction, the director owned 20 shares in the company, valued at approximately $62.40. This trade represents a -100.22% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders have acquired a total of 41,105 shares of company stock worth $127,888 in the last ninety days.

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.