Is GLOB's Q1 2025 forecast signaling a recovery trend?

**Globant's Q1 2025 forecast does not indicate an immediate recovery trend.** Here's an analysis based on the latest estimates and market reactions: 1. **Earnings Estimate**: Globant projects an estimated EPS of $1.25 for Q1 2025, which is slightly below the previous quarter's EPS of $1.75. This decline suggests a potential slowdown in earnings growth. 2. **Revenue Estimate**: The estimated revenue for Q1 2025 is $625.12 million, which is slightly above the previous quarter's revenue of $642.5 million. However, this increase is partly offset by a negative foreign exchange impact of 2.0 percentage points. 3. **Market Reaction**: Despite the earnings beat in the previous quarter, Globant's stock experienced a significant drop due to the disappointing guidance for Q1 2025. The company's stock price target was lowered by JPMorgan to $242, indicating a more cautious outlook. 4. **Guidance Concerns**: Globant's guidance for Q1 2025 includes a negative FX impact, which is a contributing factor to the lower revenue forecast compared to the previous quarter. This suggests that while the company is expecting growth, it is facing headwinds from foreign exchange fluctuations. 5. **Full-Year Outlook**: The full-year 2025 guidance includes an estimated EPS of $6.80 to $7.20 and revenue of $2,635 to $2,705 million. These figures imply a growth rate of around 10% year-over-year, which is a positive sign but may not be considered a strong recovery if compared to the high growth rates seen in previous quarters. In conclusion, while Globant is expecting growth in Q1 2025, the lower EPS estimate, the impact of foreign exchange, and the overall guidance for the full year suggest that the company may not be signaling a strong recovery trend at this time. The market's reaction to the guidance highlights the need for careful monitoring of external factors and their impact on Globant's financial performance.