StarTek (SRT) Misses Q4 EPS by 20c, Revenues Miss

StarTek (NYSE: SRT) reported Q4 EPS of ($0.26), $0.20 worse than the analyst estimate of ($0.06). Revenue for the quarter came in at $158.6 million versus the consensus estimate of $160 million.

“The Startek and Aegis integration is largely complete and led to a very strong quarter of both operational performance and business development,” said Lance Rosenzweig, president & global CEO of Startek. “We also continued to make strides in diversifying our vertical concentration and revenue mix despite the ongoing headwinds in global telecom. In fact, as a result of our growing next-gen retail client base, we experienced some of the strongest holiday volumes ever seen by the company.

“Our post-merger integration team continues to identify cost synergies, while also executing on cross-sell opportunities with our expanded geography and service capabilities. Given several new client programs and an accelerating pipeline, we added to our capacity with the opening of a third delivery campus in Honduras in early 2019.

“Subsequent to the quarter, we strengthened our board of directors with the appointments of Julie Schoenfeld and Albert Aboody, each of whom brings unique and relevant skill sets to the board. Julie is a proven technology executive with decades of experience in leading growth companies, while Albert is an accounting industry veteran who served as a senior partner at KPMG for most of his career.

“Looking ahead, we will continue to identify revenue and cost synergies, while focusing our business development efforts in high-growth verticals such as technology, financial services, next-gen retail, healthcare and travel. We also expect to ramp our technology investments in 2019, while reducing our net debt position and strengthening the balance sheet. Given our strengthening sales pipeline, we remain well positioned to execute on our growth initiatives and look forward to carrying this momentum through the year.”

For earnings history and earnings-related data on StarTek (SRT) click here.

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