West Corp Earnings: Here’s Why Investors are Ambivalent Now

West Corp (NASDAQ:WSTC) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.

West Corp Earnings Cheat Sheet

Results:

Revenue: Rose 45.71% to $672.7 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: reported adjusted EPS income of $0.71 per share. By that measure, the company beat the mean analyst estimate of $0.65. It missed the average revenue estimate of $675.53 million.

Quoting Management: “We are pleased to report another quarter of solid operating results. Debt reduction and lower interest rates on our term debt combined with improvement in SG&A to fuel improved profitability for the quarter,” said Tom Barker, CEO. “We continue to execute on our strategic initiatives, while returning a portion of our earnings to our shareholders through our quarterly dividend.”

Key Stats (on next page)…

Revenue decreased 0% from $0 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 $0.66 to a profit $0.72. For the current year, the average estimate has moved up from a profit of $2.64 to a profit of $2.82 over the last ninety days.

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

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