Globant Approves $125M Share Buyback Following Q3 EPS Miss of $0.02
Globant earned a consensus hold rating from 17 brokerages with an average one-year price target of $98.67, including cuts by JPMorgan from $78 to $75 and Canaccord from $80 to $70. The firm reported Q3 EPS of $1.53 versus a $1.55 consensus on $617.1 M revenue (+0.4% YoY) and authorised a $125 M share buyback.
1. Consensus Rating and Price Target
Seventeen research firms currently cover Globant, with one assigning a sell recommendation, ten advising a hold and six issuing buy recommendations. MarketBeat data shows the consensus 12-month price target stands at 98.67, reflecting a moderate upside expectation based on analysts’ forecasts over the past year.
2. Recent Analyst Actions
Between mid-November and late December, several brokerages adjusted their views on Globant. JPMorgan Chase lowered its target from 78.00 to 75.00 and maintained a neutral stance on November 14. Canaccord Genuity trimmed its projection from 80.00 to 70.00 while retaining a hold rating on the same date. UBS reaffirmed a neutral rating with a 70.00 target on December 2. Weiss Ratings reiterated a sell (D+) opinion on December 29, and Wells Fargo upgraded the stock to hold on October 22, signaling mixed sentiment within the Street’s top-tier research teams.
3. Q3 Earnings and Guidance
In its third-quarter report, Globant posted earnings per share of 1.53, missing the consensus estimate by 0.02. Revenue totaled 617.14 million, slightly above expectations of 615.32 million and representing a 0.4% year-over-year increase. Net margin was 4.01% and return on equity reached 10.39%. The company forecast full-year fiscal 2025 EPS of approximately 6.12 and fourth-quarter EPS near 1.53. Analysts currently model full-year EPS of 5.73 for the current period.
4. Capital Allocation and Institutional Ownership
On October 1, the board approved a share repurchase program authorizing up to 125 million in buybacks, equating to roughly 5% of outstanding shares, a signal of management’s confidence in valuation levels. Institutional investors hold 91.6% of the float, led by Invesco (2.8 million shares after a 199.1% increase), ARGA Investment Management (2.06 million shares following 14,073.7% growth), Westfield Capital Management (1.1 million shares, up 34.1%), Schroder Investment Management (1.01 million shares, up 20.1%) and AllianceBernstein (929,245 shares, up 6,875.8%).