StarTek Earnings Preview

If StarTek (NYSE: SRT  ) misses estimates again, it will be the consecutive quarter for the company. The company will unveil its latest earnings tomorrow. StarTek is a provider of business process optimization services for outsourced customer interactions.

What analysts say

• Buy, sell, or hold?: Analysts think investors should stand pat on StarTek with two of three analysts rating it hold. Analysts don't like StarTek as much as competitor Sykes Enterprises overall. Six out of 10 analysts rate Sykes Enterprises a buy compared to one of three for StarTek. StarTek's rating hasn't changed over the past three months.
• Revenue forecasts: On average, analysts predict $57.3 million in revenue this quarter. That would represent a decline of 15.3% from the year-ago quarter.
• Wall Street earnings expectations: The average analyst estimate is a loss of $0.14 per share. Estimates range from a loss of $0.20 to a loss of $0.08.

What our community says
The majority of CAPS All-Stars see SRT as a good bet, with 66.7% assigning it an outperform rating. The majority of the Fools are in agreement with the All-Stars as 72.9% give it an outperform rating. Fools have embraced StarTek, though the message boards have been quiet lately with only 22 posts in the past 30 days. StarTek's bearish CAPS rating of two out of five stars falls short of the Fool community sentiment.

Management
Revenue has fallen for the past three quarters.

Now let's look at how efficient management is at running the business. Traditionally, margins represent the efficiency with which companies capture portions of sales dollars. The following table shows gross, operating, and net margins over the past four quarters.

Quarter	Q1	Q4	Q3	Q2
Gross Margin	12.4%	9.7%	10.1%	11.3%
Operating Margin	(3.9%)	(11.0%)	(6.3%)	(5.0%)
Net Margin	(4.3%)	(10.1%)	(6.8%)	(7.7%)

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