Computer Task Group (CTG) Reports In-Line Q4 EPS, Beats on Revneues; FY18 EPS/Revenue Outlook Above Consensus

Computer Task Group (NASDAQ: CTG) reported Q4 EPS of $0.06, in-line with the analyst estimate of $0.06. Revenue for the quarter came in at $74.6 million versus the consensus estimate of $73.55 million.

Fourth Quarter Financial Summary

• Revenue was $74.6 million, above the midpoint of guidance
• Revenue excluding three largest staffing clients increased 11.3% year-over-year
• Revenue in Europe increased 18.9% year-over-year, excluding favorable currency translation
• GAAP net loss was ($419,000) or ($0.03) per share
• Recognized $1.7 million, or $0.11 per diluted share, non-cash charge related to new U.S. tax law; expected to benefit from lower tax rate in 2018 and beyond
• Recognized $0.02 per diluted share non-taxable gain from life insurance proceeds
• Non-GAAP earnings were $0.06 per diluted share, at midpoint of guidance, excluding the non-cash tax charge and the life insurance gain

Highlighlts

• Actions Taken in 2017 Provide Strong Foundation for Successful Achievement of Three-Year Strategic Plan, Including Significant Revenue and Profitability Growth by End of 2019
• Fourth Quarter Revenue, Operating Margin and non-GAAP EPS All At or Above Midpoint of Guidance
• Recently Closed Strategic, Accretive Acquisition in France to Broaden European Footprint and Further Diversify Revenue Sources
• Continued Aggressive Share Repurchases - Approximately 9% of Outstanding Shares to Date
• Announced Intent to Commence Cash Tender Offer to Repurchase Up to Additional 10% of Shares
• Expects 2018 Revenue of $340-360 Million and GAAP EPS of $0.25-$0.37, non-GAAP EPS of $0.30-$0.42
• Implemented Innovative Equity-Based Compensation to Senior Management; Vesting Based Upon Significant Increase in Share Price, Aligning Interests with Shareholders
• Eliminated Non-Employee Director Cash Compensation; Exclusively Equity-Based Compensation

GUIDANCE:

Computer Task Group sees FY2018 EPS of $0.30-$0.42, versus the consensus of $0.27. Computer Task Group sees FY2018 revenue of $340-360 million, versus the consensus of $310.35 million.

For earnings history and earnings-related data on Computer Task Group (CTG) click here.

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