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What: Shares of outsourcing company Sykes Enterprises
So what: Revenue increased 16.3% to $310.2 million, topping analyst estimates of $302 million in revenue. Earnings followed suit, hitting an adjusted $0.35 per share, well above the $0.27 expectation.
Now what: The ICT acquisition helped results this quarter and if we excluded the acquisition, operating margins would have declined 3.3%. Management is seeing improved demand from customers, which should help offset ending contracts with some customers. The full-year outlook is now for adjusted earnings per share of $1.43 to $1.53, putting shares at a reasonable 14 forward P/E multiple at the top end of that range.
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