Computer Task Group Inc. (NASDAQ:CTGX) delivered a profit and met Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 4.37%.
Computer Task Group Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 20% to $0.24 in the quarter versus EPS of $0.20 in the year-earlier quarter.
Revenue: Rose 6.92% to $107.9 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Computer Task Group Inc. reported adjusted EPS income of $0.24 per share. By that measure, the company met the mean analyst estimate of $0.24. It missed the average revenue estimate of $109 million.
Quoting Management:“CTG closed out another excellent year with a very strong fourth quarter highlighted by earnings per share, excluding the one-time gain, at the top of guidance and up 20%, an operating margin of 5.9%, and further growth of our healthcare business to one-third of total revenue,” said CTG Chairman and Chief Executive Officer James R. Boldt. “For the quarter, we again delivered significant growth in earnings and margins, along with a continued shift in our business mix to more profitable solutions work which was 42% of revenue. As expected, client concerns about domestic and global economic uncertainty are muting growth in our less profitable staffing business which was up 3.4% in the quarter and 0.7% in 2012. The 18% increase in healthcare IT revenue to 33% of 2012 revenue was the primary driver of the increases in solutions work and CTG’s revenue and earnings last year.”
Key Stats (on next page)…