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.
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