(News Bulletin 247) – The outsourced customer relations group is suffering on the Paris market as the market makes a negative cross-reading of the results of its American rival.

While the CAC 40 is celebrating this Thursday, with a 2% increase around 3:10 p.m., this is not the case for Teleperformance. The outsourced customer relations group is falling by 6% and is experiencing the biggest drop in the CAC 40.

The French company is weighed down by a negative cross-reading carried out by the market. That is to say, investors judge that an announcement made by a company reflects a problem for an entire sector of the same company.

In this case, investors are concerned about the poor figures of a US competitor of Teleperformance, Concentrix. This company listed on Wall Street has delivered results and prospects generally below expectations.

In its May-to-August quarter, the company posted revenue of $2.39 billion, up 2.6 percent on a comparable basis, while earnings per share came in at $2.87, well below the consensus estimate of $2.93 cited by investing.com.

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Concentrix falls on Wall Street

The company also indicated that it was targeting revenue of between $9.59 billion and $9.641 billion for its full 2023-2024 fiscal year and earnings per share of between $11.05 and $11.31. According to investing.com, the consensus was for revenue of $9.63 billion and earnings per share of $11.71.

On Wall Street, Concentrix shares fell 11.7% in pre-market trading in response to the results.

“Concentrix’s outlook is disappointing and the message sent is very different from that presented in the second quarter. This shows that the customer experience sector is likely to remain under tension until the end of the year,” says a financial intermediary.

Teleperformance’s last two publications had nevertheless been well received by the market. In the second quarter, the group’s growth in comparable data reached 2.4%, an acceleration compared to the first three months of the year (+0.9%). This brought the increase in revenues on this same basis to 1.7% over the entire first half.

The company expects its momentum to accelerate in the second half of the year, thanks in particular to a favorable comparison base, which should enable it to achieve growth of between 2% and 4% over the whole of 2024.