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What: Shares of CSG Systems International
So what: CSG beat earnings estimates by 20% or more for the third quarter in a row, earning an adjusted profit of $0.56 per share and bringing in $183.9 million in revenue, also above estimates. Other highlights included repurchasing 345,000 shares at an average cost of $15.76, and raising its full-year guidance to a non-GAAP EPS of $2.00-$2.15. The guidance was also adjusted to include the effects of its $19 million acquisition of the Swedish software company Ascade in July.
Now what: With a relatively low forward P/E of 9.8, and a track record of consistently beating the Street, this stock looks appealing. Analysts have yet to boost their estimates; they will likely do so, and for next year as well -- the 2013 consensus is just $1.99 right now. While revenue is not expected to grow rapidly, CSG's share buyback program should help boost investor returns.
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