Convergys Shares Popped: What You Need to Know
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Convergys (NYS: CVG) popped 16% in intraday trading today after reporting better-than-expected earnings and raising guidance.
So what: Second-quarter non-GAAP EPS of $0.26 beat the $0.23 consensus estimate and rose 37% year over year. GAAP EPS was also $0.26, a huge increase from $0.09 in the year-ago quarter. Revenue of $552 million rose 4% year over year and was also ahead of expectations.
Now what: Management cited better execution and revenue growth for the positive results. It noted that demand is increasing and it expects investments in agent training and infrastructure to improve margins later this year. Guidance for non-GAAP EPS was raised to $0.92 to $1.05 for 2011.
Interested in more info on CVG? Add it to your watchlist byclicking here.
At the time this article was published Fool contributor Cindy Johnson does not own shares of any company named above. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.
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