Why Sykes Enterprises' Shares Popped
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: Shares of customer care company Sykes Enterprises (NAS: SYKE) jumped 12% today after reporting earnings.
So what: Third-quarter revenue fell 4% to $280.5 million, and net income was more than cut in half to $8.1 million, or $0.19 per share. On a non-GAAP basis, earnings were $0.31 per share, which was ahead of the $0.27 estimate from analysts, and this is clearly what has driven the stock higher.
Now what: Despite having the Alpine Access acquisition contribute to revenue this quarter, Sykes still showed declines in revenue and profitability. I don't like the direction of the company's results and would like to see more stabilization after exiting some markets in the past year. I'll sit out today's pop, because I'm just not buying into future growth quite yet.
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The article Why Sykes Enterprises' Shares Popped originally appeared on Fool.com.
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