Convergys Beats Up on Analysts Yet Again
Convergys (NYS: CVG) reported earnings on Feb. 7. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Convergys beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved slightly and GAAP earnings per share improved.
Gross margins dropped, operating margins grew, and net margins increased.
Convergys reported revenue of $588.9 million. The eight analysts polled by S&P Capital IQ expected sales of $581.4 million. Sales were 2.7% higher than the prior-year quarter's $573.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.28. The 10 earnings estimates compiled by S&P Capital IQ anticipated $0.25 per share on the same basis. GAAP EPS were $0.45 for Q4 versus -$1.19 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 37.1%, 40 basis points worse than the prior-year quarter. Operating margin was 8.4%, 120 basis points better than the prior-year quarter. Net margin was 9.3%, 3,450 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $561.1 million. On the bottom line, the average EPS estimate is $0.23.
Next year's average estimate for revenue is $2.32 billion. The average EPS estimate is $1.07.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 94 members out of 113 rating the stock outperform, and 19 members rating it underperform. Among 28 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 25 give Convergys a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Convergys is outperform, with an average price target of $15.56.
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At the time this article was published 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 ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. 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.
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