CSG Systems' Q4 revenue slightly beats estimates

Overview

• Customer experience solutions provider's Q4 revenue rose slightly, beating analyst expectations

• Adjusted EPS for Q4 beat analyst expectations

Outlook

• CSG expects merger with NEC Corporation to close by end of 2026

Result Drivers

• SaaS GROWTH - Revenue increase driven by continued growth in SaaS and related solutions

• MERGER COSTS - Decline in GAAP operating income due to merger-related costs and higher stock-based compensation

• COST EFFICIENCY - Non-GAAP operating margin improvement attributed to cost efficiency actions

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 7 "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 $80.70, about 1.3% above its February 3 closing price of $79.69

• The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 15 three months ago

Press Release: ID:nBwccwyGma

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