Latest news with #CSGS
Yahoo
26-06-2025
- Business
- Yahoo
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.
Yahoo
16-06-2025
- Business
- Yahoo
Q1 Earnings Highlights: EXL (NASDAQ:EXLS) Vs The Rest Of The Data & Business Process Services Stocks
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 EXL (NASDAQ:EXLS) 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 7.9% on average since the latest earnings results. Originally founded as an outsourcing company in 1999 before evolving into a technology-focused enterprise, EXL (NASDAQ:EXLS) provides data analytics and AI-powered digital operations solutions that help businesses transform their operations and make better decisions. EXL reported revenues of $501 million, up 14.8% year on year. This print exceeded analysts' expectations by 2%. Overall, it was a satisfactory quarter for the company with a solid beat of analysts' EPS estimates but a slight miss of analysts' full-year EPS guidance estimates. Chairman and Chief Executive Officer Rohit Kapoor said, 'We are pleased with our first quarter results and strong start to the year, as we delivered revenue and adjusted diluted EPS growth of 15% and 27% respectively. Our strong business momentum underscores the successful execution of our differentiated data and AI-led strategy and demonstrates the enduring resilience and adaptability of EXL's business model.' EXL pulled off the fastest revenue growth of the whole group. Unsurprisingly, the stock is up 5% since reporting and currently trades at $47.25. Is now the time to buy EXL? Access our full analysis of the earnings results here, it's free. 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, outperforming analysts' expectations by 1.4%. The business had an exceptional quarter with full-year revenue guidance exceeding analysts' expectations and a solid beat of analysts' EPS estimates. CSG scored the highest full-year guidance raise among its peers. The market seems content with the results as the stock is up 2.9% since reporting. It currently trades at $63.07. Is now the time to buy CSG? 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 2% since the results and currently trades at $237.18. Read our full analysis of Broadridge's results here. Holding detailed financial records on over 800 million consumers worldwide and dating back to 1899, Equifax (NYSE:EFX) is a global data analytics company that collects, analyzes, and sells consumer and business credit information to lenders, employers, and other businesses. Equifax reported revenues of $1.44 billion, up 3.8% year on year. This print surpassed analysts' expectations by 1.7%. Aside from that, it was a satisfactory quarter as it also produced an impressive beat of analysts' EPS estimates. The stock is up 27% since reporting and currently trades at $273.10. Read our full, actionable report on Equifax 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. It was a strong quarter as it also put up a decent beat of analysts' EPS estimates. The stock is flat since reporting and currently trades at $9.04. Read our full, actionable report on Dun & Bradstreet here, it's free. In response to the Fed's rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed's 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump's presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025. Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
11-06-2025
- Business
- Yahoo
CSGS Q1 Earnings Call: Management Highlights Diversification and Margin Expansion
Customer experience software company CSG Systems (NASDAQ:CSGS) reported Q1 CY2025 results beating Wall Street's revenue expectations , with sales up 1.5% year on year to $299.5 million. The company's full-year revenue guidance of $1.23 billion at the midpoint came in 8.1% above analysts' estimates. Its non-GAAP profit of $1.14 per share was 12% above analysts' consensus estimates. Is now the time to buy CSGS? Find out in our full research report (it's free). Revenue: $299.5 million vs analyst estimates of $295.2 million (1.5% year-on-year growth, 1.4% beat) Adjusted EPS: $1.14 vs analyst estimates of $1.02 (12% beat) Adjusted EBITDA: $64.34 million vs analyst estimates of $59.35 million (21.5% margin, 8.4% beat) The company reconfirmed its revenue guidance for the full year of $1.23 billion at the midpoint Management raised its full-year Adjusted EPS guidance to $4.78 at the midpoint, a 2.1% increase EBITDA guidance for the full year is $263.5 million at the midpoint, below analyst estimates of $265 million Operating Margin: 9.8%, in line with the same quarter last year Market Capitalization: $1.79 billion CSG's first quarter results reflected the company's ongoing shift toward higher-margin SaaS solutions and expanded presence in non-telecom verticals. Management noted that 33% of revenue now comes from industries outside of cable and telecom, up from 30% a year ago, which CEO Brian Shepherd described as a record for the company. Shepherd emphasized customer wins in areas like payments, healthcare, and transportation, citing extensions with Mediacom and Liberty Latin America and a new deal with the North Texas Tolling Authority as contributors to growth. These developments, alongside improved operating discipline and cost efficiencies, drove the improvement in non-GAAP operating margin compared to the prior year. Looking forward, CSG's guidance for the remainder of the year rests on continued momentum in SaaS and recurring revenue streams, as well as disciplined cost management. Management stated that margin expansion will be fueled by a mix shift toward higher-margin SaaS deals and ongoing process improvements, with CFO Hai Tran projecting a clear path to achieve non-GAAP adjusted EBITDA margins above 25% in the coming years. Shepherd added, 'We absolutely believe there's a clear pathway for CSG to achieve at or above the upper end of our 18% to 20% non-GAAP adjusted operating margin over the next several years,' and highlighted that revenue visibility remains high due to the mission-critical nature of CSG's solutions. Management attributed the quarter's performance to expanding into new industry verticals, a growing SaaS revenue mix, and focused cost optimization measures. Revenue diversification progress: CSG increased its share of revenue from non-cable and non-telecom verticals to 33%, with notable wins in healthcare, financial services, and transportation. This broadening of customer base is reducing reliance on legacy telecom clients. Large customer concentration declines: The top two customers, Charter and Comcast, now comprise 37% of total revenue, down significantly from 49% in 2017. Shepherd clarified that this is not due to declining revenue from those clients, but rather faster growth in other business areas. SaaS margin expansion: Higher-margin SaaS product sales are driving company-wide operating leverage. CFO Hai Tran pointed to improved procurement, increased productivity, and process reengineering as key contributors to better margins. Payments business momentum: The payments division expanded its merchant base by 13% year-over-year, reaching 135,000 merchants in the quarter, supporting both revenue growth and further diversification. Cash flow improvement: Non-GAAP adjusted free cash flow marked its strongest first quarter result since 2018, attributed to margin gains, improved working capital, and disciplined vendor management. Management expects continued double-digit free cash flow growth as profitability scales. CSG expects continued growth driven by SaaS adoption, recurring revenues from diversified verticals, and further operating efficiency gains. Broadening industry exposure: Management expects further expansion into industries like healthcare, payments, and transportation to drive both top-line growth and reduced revenue concentration risk. This is supported by recent contract wins and ongoing initiatives to address complex customer needs in these sectors. Margin expansion initiatives: The company plans to maintain or improve non-GAAP operating margins through a mix of cost discipline, greater SaaS penetration, and a shift to more asset-light operations. Shepherd pointed to continuous process optimization and targeted R&D investment as foundations for achieving margin targets. Disciplined M&A approach: Management signaled ongoing interest in acquisitions that complement CSG's domain expertise in monetization and customer engagement, but stressed a commitment to only pursuing highly accretive, value-adding deals. The company's strong balance sheet and new revolving credit facility provide flexibility for such opportunities. In the coming quarters, the StockStory team will be watching (1) the pace and scale of new customer wins outside of cable and telecom, (2) the degree to which SaaS solutions and payments drive further margin expansion, and (3) management's execution on disciplined M&A to support diversification. Sustained free cash flow improvement and reduced customer concentration will also be important indicators of long-term progress. CSG currently trades at a forward P/E ratio of 13.6×. Should you double down or take your chips? Find out in our full research report (it's free). Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
Yahoo
14-05-2025
- Business
- Yahoo
3 Services Stocks Facing Headwinds
Business services providers play a critical role for enterprises, assisting them with everything from new hardware integrations to consulting and marketing. But increasing competition from AI-driven upstarts has tempered enthusiasm, and over the past six months, the industry has pulled back by 3.9%. This drop was worse than the S&P 500's 1% loss. Investors should tread carefully as many of these companies are also cyclical, and any misstep can have you catching a falling knife. Keeping that in mind, here are three services stocks best left ignored. Market Cap: $1.59 billion Operating at the intersection of policy, technology, and implementation for over five decades, ICF International (NASDAQ:ICFI) provides professional consulting services and technology solutions to government agencies and commercial clients across energy, health, environment, and security sectors. Why Do We Avoid ICFI? Sales pipeline suggests its future revenue growth may not meet our standards as its average backlog growth of 1.6% for the past two years was weak Sales are projected to tank by 7.1% over the next 12 months as demand evaporates 5.2 percentage point decline in its free cash flow margin over the last five years reflects the company's increased investments to defend its market position ICF International is trading at $86.10 per share, or 12.4x forward P/E. Read our free research report to see why you should think twice about including ICFI in your portfolio, it's free. Market Cap: $1.81 billion 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. Why Do We Pass on CSGS? 3.4% annual revenue growth over the last two years was slower than its business services peers Anticipated sales growth of 2.2% for the next year implies demand will be shaky Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results At $67.09 per share, CSG trades at 13.7x forward P/E. If you're considering CSGS for your portfolio, see our FREE research report to learn more. Market Cap: $42.18 billion Processing over 2.8 billion insurance transaction records annually through one of the world's largest private databases, Verisk Analytics (NASDAQ:VRSK) provides data, analytics, and technology solutions that help insurance companies assess risk, detect fraud, and make better business decisions. Why Do We Think Twice About VRSK? 1.9% annual revenue growth over the last five years was slower than its business services peers Earnings growth over the last two years fell short of the peer group average as its EPS only increased by 8.8% annually Verisk's stock price of $301.79 implies a valuation ratio of 41.7x forward P/E. To fully understand why you should be careful with VRSK, check out our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free.
Yahoo
08-05-2025
- Business
- Yahoo
CSG's (NASDAQ:CSGS) Q1 Sales Beat Estimates, Guides for Strong Full-Year Sales
Customer experience software company CSG Systems (NASDAQ:CSGS) beat Wall Street's revenue expectations in Q1 CY2025, with sales up 1.5% year on year to $299.5 million. The company's full-year revenue guidance of $1.23 billion at the midpoint came in 8.1% above analysts' estimates. Its non-GAAP profit of $1.14 per share was 12% above analysts' consensus estimates. Is now the time to buy CSG? Find out in our full research report. CSG (CSGS) Q1 CY2025 Highlights: Revenue: $299.5 million vs analyst estimates of $295.2 million (1.5% year-on-year growth, 1.4% beat) Adjusted EPS: $1.14 vs analyst estimates of $1.02 (12% beat) Adjusted EBITDA: $64.34 million vs analyst estimates of $59.35 million (21.5% margin, 8.4% beat) The company reconfirmed its revenue guidance for the full year of $1.23 billion at the midpoint Management raised its full-year Adjusted EPS guidance to $4.78 at the midpoint, a 2.1% increase EBITDA guidance for the full year is $263.5 million at the midpoint, below analyst estimates of $265 million Operating Margin: 9.8%, in line with the same quarter last year Free Cash Flow was $7.07 million, up from -$34.13 million in the same quarter last year Market Capitalization: $1.66 billion '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. Company Overview 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. Sales Growth Examining a company's long-term performance can provide clues about its quality. Any business can have short-term success, but a top-tier one grows for years. With $1.20 billion in revenue over the past 12 months, CSG is a small player in the business services space, which sometimes brings disadvantages compared to larger competitors benefiting from economies of scale and numerous distribution channels. As you can see below, CSG's 4.2% annualized revenue growth over the last five years was mediocre. This shows it couldn't generate demand in any major way and is a tough starting point for our analysis. CSG Quarterly Revenue We at StockStory place the most emphasis on long-term growth, but within business services, a half-decade historical view may miss recent innovations or disruptive industry trends. CSG's annualized revenue growth of 3.4% over the last two years aligns with its five-year trend, suggesting its demand was consistently weak.
