The 10-second takeaway
For the quarter ended Dec. 31 (Q4), CSG International beat slightly on revenue and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share expanded.
Gross margin dropped, operating margin dropped, and net margin expanded.
CSG International logged revenue of $187.6 million. The six analysts polled by S&P Capital IQ hoped for revenue of $185.7 million on the same basis. GAAP reported sales were 22% higher than the prior-year quarter's $154.1 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.46. The four earnings estimates compiled by S&P Capital IQ predicted $0.53 per share on the same basis. GAAP EPS were $0.35 for Q4 compared to -$0.05 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 51.5%, 40 basis points worse than the prior-year quarter. Operating margin was 17.0%, 270 basis points worse than the prior-year quarter. Net margin was 6.0%, 720 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $180.8 million. On the bottom line, the average EPS estimate is $0.41.
Next year's average estimate for revenue is $736.8 million. The average EPS estimate is $1.55.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 102 members out of 112 rating the stock outperform, and 10 members rating it underperform. Among 45 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 43 give CSG International a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on CSG International is hold, with an average price target of $19.50.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.