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Sykes Enterprises Earnings Up Next

By Seth Jayson – Updated Apr 10, 2017 at 6:24AM

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Checking expectations

Sykes Enterprises (Nasdaq: SYKE) is expected to report Q2 earnings on Aug. 5. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Sykes Enterprises's revenues will expand 14.1% and EPS will decrease -16.7%.

The average estimate for revenue is $302.1 million. On the bottom line, the average EPS estimate is $0.20.

Revenue details
Last quarter, Sykes Enterprises logged revenue of $301.2 million. 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 are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.

EPS details
Last quarter, non-GAAP EPS came in at $0.23. GAAP EPS were $0.15 for Q1 versus -$0.02 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.

Recent performance
For the preceding quarter, gross margin was 32.4%, 370 basis points worse than the prior-year quarter. Operating margin was 3.5%, 220 basis points worse than the prior-year quarter. Net margin was 2.2%, 250 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $1.23 billion. The average EPS estimate is $1.24.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 137 members out of 150 rating the stock outperform, and 13 members rating it underperform. Among 43 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 39 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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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. 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.

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