The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Sykes Enterprises missed estimates on revenue and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue contracted and GAAP earnings per share expanded.
Gross margin contracted, operating margin dropped, and net margin increased.
Sykes Enterprises tallied revenue of $276.2 million. The nine analysts polled by S&P Capital IQ expected a top line of $289.2 million on the same basis. GAAP reported sales were 1.4% higher than the prior-year quarter's $272.3 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 $0.27. The 10 earnings estimates compiled by S&P Capital IQ averaged $0.28 per share on the same basis. GAAP EPS were $0.12 for Q4 compared to -$0.36 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 35.4%, 420 basis points worse than the prior-year quarter. Operating margin was 6.2%, 330 basis points worse than the prior-year quarter. Net margin was 1.8%, 800 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $275.5 million. On the bottom line, the average EPS estimate is $0.22.
Next year's average estimate for revenue is $1.10 billion. The average EPS estimate is $1.15.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 139 members out of 150 rating the stock outperform, and 11 members rating it underperform. Among 43 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 39 give Sykes Enterprises a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Sykes Enterprises is outperform, with an average price target of $19.29.
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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.