Data & Business Process Services Q1 Earnings: CSG (NASDAQ:CSGS) is the Best in the Biz
The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let's take a look at how CSG (NASDAQ:CSGS) and the rest of the data & business process services stocks fared in Q1.
A combination of increasing reliance on data and analytics across various industries and the desire for cost efficiency through outsourcing could mean that companies in this space gain. As functions such as payroll, HR, and credit risk assessment rely on more digitization, key players in the data & business process services industry could be increased demand. On the other hand, the sector faces headwinds from growing regulatory scrutiny on data privacy and security, with laws like GDPR and evolving U.S. regulations potentially limiting data collection and monetization strategies. Additionally, rising cyber threats pose risks to firms handling sensitive personal and financial information, creating outsized headline risk when things go wrong in this area.
The 11 data & business process services stocks we track reported a satisfactory Q1. As a group, revenues beat analysts' consensus estimates by 1.3% while next quarter's revenue guidance was in line.
Thankfully, share prices of the companies have been resilient as they are up 6.8% on average since the latest earnings results.
Powering billions of critical customer interactions annually, CSG Systems (NASDAQ:CSGS) provides cloud-based software platforms that help companies manage customer interactions, process payments, and monetize their services.
CSG reported revenues of $299.5 million, up 1.5% year on year. This print exceeded analysts' expectations by 1.4%. Overall, it was an exceptional quarter for the company with full-year revenue guidance exceeding analysts' expectations and a solid beat of analysts' EPS estimates.
'Team CSG's strong first quarter results enabled us to raise our 2025 non-GAAP profitability and EPS guidance targets. We grew revenue nicely at customers outside of communication service providers ('CSPs') with a third of our revenue now coming from big, faster growing industry verticals providing a buffer against today's macro-economic uncertainty.' said Brian Shepherd, President and Chief Executive Officer of CSG.
CSG achieved the highest full-year guidance raise but had the slowest revenue growth of the whole group. Unsurprisingly, the stock is up 3.9% since reporting and currently trades at $63.73.
Is now the time to buy CSG? Access our full analysis of the earnings results here, it's free.
Pioneering the concept of "agile aerospace" with hundreds of small but powerful satellites, Planet Labs (NYSE:PL) operates the world's largest fleet of Earth observation satellites, capturing daily images of our planet to provide insights on deforestation, agriculture, and climate change.
Planet Labs reported revenues of $66.27 million, up 9.6% year on year, outperforming analysts' expectations by 6.5%. The business had a very strong quarter with an impressive beat of analysts' EPS estimates and full-year revenue guidance slightly topping analysts' expectations.
Planet Labs pulled off the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 36.2% since reporting. It currently trades at $5.46.
Is now the time to buy Planet Labs? Access our full analysis of the earnings results here, it's free.
Processing over $10 trillion in equity and fixed income trades daily and managing proxy voting for over 800 million equity positions, Broadridge Financial Solutions (NYSE:BR) provides technology-driven solutions that power investing, governance, and communications for banks, broker-dealers, asset managers, and public companies.
Broadridge reported revenues of $1.81 billion, up 4.9% year on year, falling short of analysts' expectations by 2.5%. It was a slower quarter, leaving some shareholders looking for more.
Broadridge delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 1.6% since the results and currently trades at $238.16.
Read our full analysis of Broadridge's results here.
With a research department that makes over 10,000 property updates daily to its 35-year-old database, CoStar Group (NASDAQ:CSGP) provides comprehensive real estate data, analytics, and online marketplaces for commercial and residential properties in the U.S. and U.K.
CoStar reported revenues of $732.2 million, up 11.5% year on year. This number met analysts' expectations. It was a strong quarter as it also produced an impressive beat of analysts' EPS estimates and revenue guidance for next quarter meeting analysts' expectations.
CoStar had the weakest full-year guidance update among its peers. The stock is down 2.2% since reporting and currently trades at $80.76.
Read our full, actionable report on CoStar here, it's free.
Known for its proprietary D-U-N-S Number that serves as a unique identifier for businesses worldwide, Dun & Bradstreet (NYSE:DNB) provides business decisioning data and analytics that help companies evaluate credit risks, verify suppliers, enhance sales productivity, and gain market visibility.
Dun & Bradstreet reported revenues of $579.8 million, up 2.7% year on year. This result was in line with analysts' expectations. Overall, it was a strong quarter as it also recorded a decent beat of analysts' EPS estimates.
The stock is up 1.2% since reporting and currently trades at $9.07.
Read our full, actionable report on Dun & Bradstreet here, it's free.
Thanks to the Fed's series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump's presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.
Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
16 minutes ago
- Yahoo
Jeff Bezos and Lauren Sánchez are one of the richest married couples. Here's how the ultrawealthy do prenups.
With Jeff Bezos and Lauren Sánchez now married, they're likely to have a complex prenup. Lawyers and wealth management experts outlined the prenup process for the superrich. Business control, property ownership, and trusts are just some of the questions prenups tackle. Hindsight is 20/20 — especially when hindsight is worth $38 billion. Amazon founder Jeff Bezos and MacKenzie Scott, his first wife, got married without a prenup (in 1993, before Bezos started Amazon). Scott received roughly $38 billion in Amazon shares in the settlement, making her one of the world's richest women. On Friday, Bezos got married again, this time to helicopter pilot and former journalist Lauren Sánchez. Experts in family law and wealth management told Business Insider that the couple is almost certain to have a complex prenup. Bezos is, after all, worth more than $200 billion today. A representative for Bezos didn't respond to a request for comment from BI about whether the couple has a prenup. Anne Paape, the managing director and head of wealth strategy at Cresset Capital, a multi-family office for entrepreneurs and multi-generational families of wealth, said prenups are generally becoming more common and are sometimes even mandated in family trusts for the ultrawealthy. Prenups begin with both people fully disclosing their financial assets and debts, she said. Besides family, they can also involve everyone from business partners and tax attorneys to luxury realtors and aviation experts who help appraise homes and private jets, said Brooke Summerhill, a divorce financial consultant who primarily works with ultra-high net worth clients. "It's not the clients making a lot of these decisions, it's their team helping them understand what those decisions are and making those decisions with them," she told BI. Paape doesn't know the details of Bezos' potential prenup but said his situation isn't entirely unique: Many superrich weddings mark second or third marriages for at least one spouse, often one whose assets have changed considerably since their first time tying the knot. "He will absolutely have protection against anything that he could," Summerhill said, adding that he likely won't let his pre-marriage assets co-mingle with Sánchez's assets. The more money you have, the more potential prenup headaches you'll have, especially when it comes to business interests and properties. Wealthy clients tend to have properties and business interests around the globe, making it harder to ensure compliance with divorce and death laws in various jurisdictions. Many entrepreneurs like Bezos are focused on insulating their businesses in the event of a divorce or death. Most don't want to risk giving an ex-partner enough stock to have a say in how the company runs, Paape told BI. "You could try to compensate for keeping that off the table," Paape said. "What else if you were to get divorced? What other resources could you provide to that person?" Clauses safeguarding the appreciation of assets during a marriage are also key for wealthy clients, Summerhill said. If the couple ever divorces, it's not unlikely that Sánchez would get a lump sum, Amazon shares, and some real estate, according to Summerhill and Raymond Hekmat, a family law attorney in Beverly Hills who primarily writes prenups. But a marriage can also end in death, and that's where a death clause can come in. As Summerhill put it, this "prevents the surviving spouse from claiming a bigger portion of that deceased person's separate property." A surviving spouse commonly receives a lump sum or life insurance payout upon their spouse's death, she said, but a last will and testament may take precedent over the prenup. Prenups for the ultrawealthy have repercussions beyond the couple, whether it's about who takes over the family empire or gets the keys to the Hamptons home. "There's more people that care about the resolution of that breakup, whether it's divorce or death," Paape said. "It's business partners, it's employees, it's charities you support, it's children and grandchildren." She said trusts "are a no-brainer " for children of the ultrarich and that many provisions deal with inherited property or business ownership. Bezos shares four children with Scott, and Sánchez has three kids. Hekmat said all the prenups he draws up have a confidentiality provision, and some can include social media restrictions. "In the event of a breakup, you can't disparage the other party or discuss the prenup in any way with the public, and there could be penalties involved," he said. Prenups can also include sunset clauses, which say that some provisions or even the full agreement expires after a certain period of time. Some people may choose to change certain provisions and become more generous after they've been with their spouse for a while, Paape said. Hekmat said that even with prenups, couples risk messy legal and financial fights down the line. Proclaimed love and devotion aside, he kept his advice for the Bezoses of the world simple. "My bottom line for billionaires is don't get married." Have a tip or a story to share about your own experiences with a prenup? Contact these reporters via email at atecotzky@ or sjackson@ or on Signal at alicetecotzky.05. Use a personal email address and a nonwork device; here's our guide to sharing information securely. Read the original article on Business Insider
Yahoo
16 minutes ago
- Yahoo
Meta hires four more OpenAI researchers, The Information reports
(Reuters) -Meta Platforms is hiring four more OpenAI artificial intelligence researchers, The Information reported on Saturday. The researchers, Shengjia Zhao, Jiahui Yu, Shuchao Bi and Hongyu Ren have each agreed to join, the report said, citing a person familiar with their hiring. Earlier this week, the Instagram parent hired Lucas Beyer, Alexander Kolesnikov and Xiaohua Zhai, who were all working in OpenAI's Zurich office, the Wall Street Journal reported. Meta and ChatGPT maker OpenAI did not immediately respond to a Reuters request for comment. The company has recently been pushing to hire more researchers from OpenAI to join chief executive Mark Zuckerberg's superintelligence efforts. Reuters could not immediately verify the report.
Yahoo
16 minutes ago
- Yahoo
‘More empty homes in America than there are homeless people': Affordability agenda drives NY primary
Critics debate whether the primary win of Zohran Mamdani is a referendum on the future of the Democratic party. One thing is certain – he clearly struck a nerve with voters, and it's that Americans can barely afford to live in this country. Author and economics professor Andre Perry argues that nothing will be affordable if wages can't keep pace with rising costs. He notes that New York City has 'lost 75,000 middle income jobs' just in the last year. According to radio show host and NY
