Convergys (CVG) Tops Q2 EPS by 6c, Slight Miss on Revenues; 'Updated 2017 Outlook Includes Revenue Decrease, Margin Expansion & EPS Growth'

Convergys (NYSE: CVG) reported Q2 EPS of $0.46, $0.06 better than the analyst estimate of $0.40. Revenue for the quarter came in at $687 million versus the consensus estimate of $687.91 million.

2017 Business Outlook

Updated Convergys expectations for the full year now include:

• Constant currency revenue change of negative 4 percent to negative 2 percent, revised from prior guidance of negative 3 percent to positive 1 percent;
• Adjusted EBITDA margin to approximate 12.6 percent, increased from prior guidance to approximate 12.5 percent;
• Adjusted effective tax rate to approximate 20 percent, unchanged from prior guidance;
• Diluted shares outstanding to approximate 100.5 million reflecting shares repurchased through the second quarter, reduced from prior guidance to approximate 102.5 million;
• Adjusted EPS growth of positive 1 percent to positive 3 percent, improved from prior guidance of negative 3 percent to positive 3 percent;
• Adjusted free cash flow to approximate adjusted net income, unchanged from prior guidance.

Second Quarter Summary

• Revenue of $687 million, down 1 percent as reported and a slight increase on a constant currency basis compared with prior year, including a 6 percent contribution from the buw acquisition;
• GAAP operating income was $49 million, up 5 percent compared with prior year; adjusted operating income was $58 million, the same as prior year;
• GAAP net income was $40 million, up 20 percent compared with prior year; adjusted net income was $46 million, up 11 percent compared with prior year;
• Adjusted EBITDA was $86 million, the same as prior year;
• GAAP EPS of $0.40, compared with $0.32 in prior year; adjusted EPS of $0.46, compared with $0.41 in prior year;
• Operating cash flow of $90 million, adjusted free cash flow of $72 million;
• $31 million capital returned to shareholders via share repurchase and dividend;
• Updated 2017 outlook includes revenue decrease, margin expansion, and EPS growth.

For earnings history and earnings-related data on Convergys (CVG) click here.

You May Also Be Interested In

• Tesla plans 'flying' Roadster stunt at SpaceX Texas site as early as August
• Reading (RDI) Tops Q2 EPS by 4c
• Zeo Energy Corp (ZEO) Misses Q2 EPS by 7c