The 10-second takeaway
For the quarter ended March 31 (Q1), 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 dropped significantly. GAAP earnings per share grew.
Gross margins dropped, operating margins dropped, net margins grew.
Sykes Enterprises booked revenue of $301.2 million. The seven analysts polled by S&P Capital IQ foresaw revenue of $299.7 million on the same basis. GAAP reported sales were 8.3% higher than the prior-year quarter's $278.1 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 $0.23. The seven earnings estimates compiled by S&P Capital IQ forecast $0.19 per share. Non-GAAP EPS of $0.23 for Q1 were 28% lower than the prior-year quarter's $0.32 per share. (The prior-year quarter included -$0.27 per share in earnings from discontinued operations.) GAAP EPS were $0.15 for Q1 against -$0.02 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 32.4%, 340 basis points worse than the prior-year quarter. Operating margin was 3.3%, 240 basis points worse than the prior-year quarter. Net margin was 2.2%, 250 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $301.1 million. On the bottom line, the average EPS estimate is $0.27.
Next year's average estimate for revenue is $1.23 billion. The average EPS estimate is $1.21.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 135 members out of 148 rating the stock outperform, and 13 members rating it underperform. Among 37 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 33 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 $19.00.
Is Sykes Enterprises playing the right part in the new technology revolution? Computers, mobile devices, and related services are creating huge amounts of valuable data, but only for companies that can crunch the numbers and make sense of it. Meet the leader in this field in "The Only Stock You Need To Profit From the NEW Technology Revolution." Click here for instant access to this free report.
- Add Sykes Enterprises to My Watchlist.
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. The Motley Fool has no position in any of the stocks mentioned. 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.