Convergys Corporation (NYSE:CVG) delivered a profit and missed 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.
Convergys Corporation Earnings Cheat Sheet
Results: Adjusted Earnings Per Share were the same at $0.22 in the quarter as EPS of $0.22 in the year-earlier quarter.
Revenue: Decreased 0.7% to $494 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Convergys Corporation reported adjusted EPS income of $0.22 per share. By that measure, the company missed the mean analyst estimate of $0.23. It missed the average revenue estimate of $499.79 million.
Quoting Management: “We performed well in the first quarter exceeding earnings expectations, and we also experienced strong new business signings,” said Andrea Ayers, president and CEO. “Broad-based growth with existing and new clients nearly offset expected headwinds from legacy technology migrations and client volume fluctuations in the quarter. Our investment in quality service delivery, global capacity and sales success is driving solid execution, and we continue to anticipate revenue growth and profit improvement for the full year.”
Key Stats (on next page)…
Revenue decreased 2.91% from $508.8 million in the previous quarter. EPS decreased 12% from $0.25 in the previous quarter.
Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.24 and has not changed. For the current year, the average estimate has moved up from a profit of $1.02 to a profit of $1.03 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)