TeleTech Holdings Earnings Preview

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Investors braced for a bumpy ride ahead of TeleTech Holdings' (NAS: TTEC) earnings announcement as the company has wavered between beating and falling short of analyst predictions during the past fiscal year. The company will unveil its latest earnings Tuesday. TeleTech Holdings is the global providers of onshore, offshore and works from home business process outsourcing services focusing on revenue generation, customer and enterprise management, and technology-enabled solutions.

What analysts say:

  • Buy, sell, or hold?: Analysts strongly back TeleTech Holdings, with seven of 12 rating it a buy and the remainder rating it a hold. Analysts don't like TeleTech Holdings as much as competitor Acxiom overall. That rating hasn't budged in three months as analysts have remained unchanged in their opinion of the stock.
  • Revenue forecasts: On average, analysts predict $285.4 million in revenue this quarter. That would represent a rise of 5% from the year-ago quarter.
  • Wall Street earnings expectations: The average analyst estimate is earnings of $0.30 per share. Estimates range from $0.28 to $0.32.

What our community says:
CAPS All-Stars are solidly behind the stock with 95.2% awarding it an "outperform" rating. The community at large agrees with the All-Stars with 89.9% granting it a rating of "outperform." Fools are keen on TeleTech Holdings, though the message boards have been quiet lately with only 47 posts in the past 30 days. Despite the majority sentiment in favor of TeleTech Holdings, the stock has a middling CAPS rating of three out of five stars.

Management:
TeleTech Holdings' income has fallen year over year by an average of 31.1%.

Now let's look at how efficient management is at running the business. Traditionally, margins represent the efficiency with which companies capture portions of sales dollars. The following table shows gross, operating, and net margins over the past four quarters.

Quarter

Q1

Q4

Q3

Q2

Gross Margin

29.1%

27.7%

28.4%

27.1%

Operating Margin

7.6%

5.5%

7.4%

7.0%

Net Margin

3.7%

1.6%

6.9%

4.9%

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At the time this article was published

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