Sykes Enterprises Beats on Both Top and Bottom Lines
Sykes Enterprises (NAS: SYKE) reported earnings on May 7. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), Sykes Enterprises beat expectations on revenues and beat expectations on earnings per share.
Compared with the prior-year quarter, revenue contracted and GAAP earnings per share dropped to a loss.
Gross margins improved, operating margins were steady, net margins contracted.
Sykes Enterprises notched revenue of $278.1 million. The eight analysts polled by S&P Capital IQ hoped for revenue of $271.9 million on the same basis. GAAP reported sales were 10% lower than the prior-year quarter's $310.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.32. The 10 earnings estimates compiled by S&P Capital IQ forecast $0.22 per share. GAAP EPS were -$0.02 for Q1 against $0.28 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 35.8%, 150 basis points better than the prior-year quarter. Operating margin was 5.3%, about the same as the prior-year quarter. Net margin was -0.3%, 450 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $273.6 million. On the bottom line, the average EPS estimate is $0.21.
Next year's average estimate for revenue is $1.10 billion. The average EPS estimate is $1.15.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 141 members out of 152 rating the stock outperform, and 11 members rating it underperform. Among 38 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 34 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 $18.43.
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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. He is the 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 don't 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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