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EPS beats expectations, revenue lags

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Kainos Group (LON:KNOS) Complete results for the year 2024

Main financial results

  • Revenue: UK £382.4 million (up 2.0% from FY23).

  • Net profit: UK £48.7m (17% increase on FY2023).

  • Profit margin: 13% (up from 11% in FY2023).

  • EPS: UK£0.39 (up from UK£0.34 in FY2023).

details of income and expenses

All numbers shown in the chart above are for the period of the last 12 months (TTM)

Kainos Group EPS exceeds expectations, revenue falls short

Revenue missed analyst estimates by 1.8%. Earnings per share (EPS) beat analyst estimates by 1.0%.

The main revenue driver over the last 12 months was the Digital Services segment, contributing total revenue of £213.1m (56% of total revenue). Notably, cost of sales worth £195.1 million represented 51% of total revenue, thus underlining the impact on profits. The largest operating expense was general and administrative costs, worth £128.1 million (92% of total expenses). Explore how KNOS’ income and expenses shape its earnings.

Looking ahead, revenues are forecast to grow by 8.5% per annum on average over the next 3 years, compared to a 7.0% growth forecast for the UK IT industry.

Performance of British IT industry.

The company’s shares rose 15% from the previous week.

Risk analysis

It is still necessary to consider the ever-present specter of investment risk. We’ve identified 1 warning sign with Kainos Groupand understanding this should be part of your investment process.

Do you have feedback on this article? Worried about the content? Get in touch with us directly. Alternatively, email the editorial team (at) Simplywallst.com.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock and does not take into account your objectives or your financial situation. Our goal is to bring you long-term focused analysis driven by fundamental data. Please note that our analysis may not take into account the latest price-sensitive company announcements or qualitative materials. Simply Wall St has no position in any of the stocks mentioned.

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