The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Sykes Enterprises beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted and GAAP earnings per share contracted significantly.
Margins shrank across the board.
Sykes Enterprises recorded revenue of $280.5 million. The seven analysts polled by S&P Capital IQ predicted revenue of $267.0 million on the same basis. GAAP reported sales were 7.3% lower than the prior-year quarter's $302.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.31. The nine earnings estimates compiled by S&P Capital IQ predicted $0.27 per share. GAAP EPS of $0.19 for Q3 were 53% lower than the prior-year quarter's $0.40 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 34.5%, 20 basis points worse than the prior-year quarter. Operating margin was 3.2%, 390 basis points worse than the prior-year quarter. Net margin was 2.9%, 310 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $271.9 million. On the bottom line, the average EPS estimate is $0.31.
Next year's average estimate for revenue is $1.08 billion. The average EPS estimate is $1.14.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 136 members out of 148 rating the stock outperform, and 12 members rating it underperform. Among 34 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 29 give Sykes Enterprises a green thumbs-up, and five 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 $17.83.
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