CSG Systems International Earnings: Here’s Why the Stock is Up Now

CSG Systems International Inc. (NASDAQ:CSGS) 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. Shares are up 3.15%.

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CSG Systems International Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 20% to $0.48 in the quarter versus EPS of $0.60 in the year-earlier quarter.

Revenue: Decreased 2.38% to $180.6 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: CSG Systems International Inc. reported adjusted EPS income of $0.48 per share. By that measure, the company missed the mean analyst estimate of $0.52. It missed the average revenue estimate of $187.04 million.

Quoting Management: “With our major contract renewals secured into 2017, we have reduced the amount of risk associated with our revenue stream well into the future and we are positioned to grow the revenues of the company by doing more with existing clients and also adding to our client base,” said Peter Kalan, president and chief executive officer of CSG Systems International, Inc. “Further, we’ve proven that we are prudent operators with the ability to drive bottom line results and improve our operating margins. I am optimistic about what the future holds for our clients, our employees and our shareholders.”

Key Stats (on next page)…

Revenue decreased 8.79% from $198.01 million in the previous quarter. EPS decreased 28.36% from $0.67 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.45 to a profit $0.5. For the current year, the average estimate has moved up from a profit of $1.98 to a profit of $2.11 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)