Luxoft lowers FY18 non-GAAP EPS view to 'at least' $2.85, consensus $3.39
Previously saw FY18 non-GAAP EPS of "at least" $3.26. Lowers FY18 revenue view to "at least" $920M, down from prior view of $943M, consensus $946.1M. "This year we continue seeing some headwinds on our gross margin side, primarily driven by investments associated with development of our high potential accounts, which, while growing in revenue concentration, have not yet reached firm-wide average gross margin levels. Our profitability is also affected by rebalancing of the client portfolio and initially lower margin accounts that usually come from the acquisitions. We have a solid pipeline of new opportunities and a continued strong performance of the HPA base, now consisting of 50 accounts. Thus, we expect the pace of organic growth to improve as compared to last year to above 30% outside of top 2 accounts. In the upcoming quarters we also anticipate to post improved adjusted EBITDA and net income," said CFO Evgeny Fetisov.