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What: Shares of CSG Systems
So what: Revenue rose 38% to $181.3 million, though adjusted profit fell 8% to $0.49 a share. Analysts were hoping for EPS of $0.55 on $186.5 million in revenue, according to data compiled by Yahoo! Finance.
Now what: Management blamed the earnings side of the miss on a higher-than-expected tax rate, but the feds only accounted for $0.03 of CSG's $0.06 miss. CEO Peter Kalan also said CSG is undergoing a "transformation" that could prove bumpy over the near team. Are you willing to pay 8 times forward earnings to enjoy the fruits of a potential turnaround? Weigh in using the comments box below.
Fool contributor Tim Beyers is a member of the Motley Fool Rule Breakers stock-picking team. He didn't own shares in any of the companies mentioned in this article at the time of publication. Check out Tim's portfolio holdings and Foolish writings, or connect with him on Google+ or Twitter, where he goes by @milehighfool. You can also get his insights delivered directly to your RSS reader.
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