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What: Shares of TeleTech Holdings (NASDAQ:TTEC) have popped by as much as 12%, after the company reported strong third quarter earnings.
So what: Revenue in the third quarter was $286.3 million. That was lower than expected, as well as a year-over-year decline, but was mainly due to the company exiting certain underperforming businesses. TeleTech made up for it by posting a healthy beat with non-GAAP earnings per share of $0.39.
Now what: CEO Ken Tuchman said the company continues to invest in revenue diversification and innovation. Top line revenue was also negatively affected by foreign currency fluctuations. Excluding those impacts, as well as adjusting for exiting certain businesses, revenue actually grew 4.7%. TeleTech inked additional customer relationships that it estimates will generate $90 million annually, 75% of which should be recurring revenue.
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Evan Niu, CFA has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. 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.