The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Sykes Enterprises met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share grew significantly. GAAP earnings per share expanded significantly.
Gross margins dropped, operating margins contracted, net margins grew.
Sykes Enterprises recorded revenue of $304.3 million. The seven analysts polled by S&P Capital IQ wanted to see a top line of $303.7 million on the same basis. GAAP reported sales were 10% higher than the prior-year quarter's $276.2 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 $0.39. The seven earnings estimates compiled by S&P Capital IQ predicted $0.31 per share. Non-GAAP EPS of $0.39 for Q4 were 44% higher than the prior-year quarter's $0.27 per share. (The prior-year quarter included -$0.02 per share in earnings from discontinued operations.) GAAP EPS of $0.31 for Q4 were 158% higher than the prior-year quarter's $0.12 per share. (The prior-year quarter included -$0.02 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 33.9%, 150 basis points worse than the prior-year quarter. Operating margin was 5.3%, 90 basis points worse than the prior-year quarter. Net margin was 4.4%, 260 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $297.4 million. On the bottom line, the average EPS estimate is $0.31.
Next year's average estimate for revenue is $1.21 billion. The average EPS estimate is $1.36.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Sykes Enterprises is outperform, with an average price target of $19.80.
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