CSG Systems beats Q2 revenue expectations
Overview
CSG Q2 revenue rises 2.3% to $297.1 mln, beating analyst expectations
Non-GAAP EPS for Q2 increases to $1.16, exceeding estimates
Co raises 2025 full-year profitability and cash flow guidance targets
Outlook
CSG raises 2025 adjusted free cash flow guidance to $120-$150 mln
CSG increases 2025 adjusted EBITDA guidance to $261-$272 mln
CSG maintains 2025 revenue guidance at $1.21-$1.25 bln
CSG keeps 2025 EPS guidance at $4.65-$4.90
Result Drivers
SAAS GROWTH - Revenue growth driven by increased demand for SaaS and related solutions, including contributions from acquired iCG business
COST EFFICIENCY - Improved non-GAAP operating margin attributed to cost efficiency actions, per CEO Brian Shepherd
CUSTOMER WINS - New and expanded relationships with Orange Business and Liberty Puerto Rico contributed to results
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Beat | $297.13 mln | $289.50 mln (8 Analysts) |
Q2 Adjusted EPS | Beat | $1.16 | $1.05 (8 Analysts) |
Q2 EPS |
| $0.44 |
|
Q2 Adjusted operating income |
| $54.50 mln |
|
Q2 Adjusted operating margin |
| 20.1% |
|
Q2 Operating income |
| $29.86 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the it services & consulting peer group is "buy"
Wall Street's median 12-month price target for Csg Systems International Inc is $75.50, about 18% above its August 5 closing price of $61.88
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 13 three months ago
Press Release: ID:nBw2DsxVYa
