Investors hope CSG Systems International (Nasdaq: CSGS) will top analyst estimates once again after beating predictions by 4 cents in the previous quarter. The company will unveil its latest earnings on Tuesday, February 7. CSG Systems International is a provider of software- and services-based customer interaction management solutions that help its clients build commerce by better engaging and transacting with their customers.

What analysts say:

  • Buy, sell, or hold?: Analysts think investors should stand pat on CSG Systems International with four of five analysts rating it hold. Analysts don't like CSG Systems International as much as competitor AsiaInfo-Linkage overall. Six out of nine analysts rate AsiaInfo-Linkage a buy compared to one of five for CSG Systems International. While analysts still rate the stock a Hold, they are a little more optimistic about it compared to three months ago.
  • Revenue Forecasts: On average, analysts predict $185.7 million in revenue this quarter. That would represent a rise of 20.5% from the year-ago quarter.
  • Wall Street Earnings Expectations: The average analyst estimate is earnings of $0.48 per share. Estimates range from $0.47 to $0.48.

What our community says
CAPS All-Stars are solidly backing the stock, with 93.8% granting it an "outperform" rating. The community at large agrees with the All-Stars, with 91.2% awarding it a rating of "outperform." Fools have embraced CSG Systems International, though the message boards have been quiet lately with only 50 posts in the past 30 days. Despite the majority sentiment in favor of CSG Systems International, the stock has a middling CAPS rating of three out of five stars.

Management
Now, a look at how efficient management has been at running the business. Traditionally, margins serve as an illustration of how efficiently a company captures portions of sales dollars. CSG Systems International's net margins, which reflect what percentage of each dollar earned by the company becomes profit, are down for the last two quarters year-over-year. Here is how CSG Systems International has been doing for the last four quarters:

Quarter Q3 Q2 Q1 Q4
Gross Margin 49.1% 49.9% 50.4% 51.8%
Operating Margin 12.5% 12.3% 13.2% 13.4%
Net Margin 5.7% 5% 6.3% -1.2%

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Earnings estimates provided by Zacks.