CSG International Increases Sales but Misses Estimates on Earnings

Seth Jayson, The Motley Fool
Updated

CSG International (NAS: CSGS) reported earnings on Feb. 7. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), CSG International beat slightly on revenue and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share expanded.

Gross margin dropped, operating margin dropped, and net margin expanded.

Revenue details
CSG International logged revenue of $187.6 million. The six analysts polled by S&P Capital IQ hoped for revenue of $185.7 million on the same basis. GAAP reported sales were 22% higher than the prior-year quarter's $154.1 million.

anImage
anImage

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Non-GAAP EPS came in at $0.46. The four earnings estimates compiled by S&P Capital IQ predicted $0.53 per share on the same basis. GAAP EPS were $0.35 for Q4 compared to -$0.05 per share for the prior-year quarter.

anImage
anImage

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

Margin details
For the quarter, gross margin was 51.5%, 40 basis points worse than the prior-year quarter. Operating margin was 17.0%, 270 basis points worse than the prior-year quarter. Net margin was 6.0%, 720 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $180.8 million. On the bottom line, the average EPS estimate is $0.41.

Next year's average estimate for revenue is $736.8 million. The average EPS estimate is $1.55.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 102 members out of 112 rating the stock outperform, and 10 members rating it underperform. Among 45 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 43 give CSG International a green thumbs-up, and two give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on CSG International is hold, with an average price target of $19.50.

Is CSG International playing the right part in the new technology revolution? Computers, mobile devices, and related services are creating huge amounts of valuable data, but only for companies that can crunch the numbers and make sense of it. Meet the leader in this field in our latest free report: "The Only Stock You Need To Profit From the NEW Technology Revolution." Click here for instant access to this free report.

At the time thisarticle 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.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Advertisement