CSG Systems (NASDAQ: CSGS) reported Q3 EPS of $0.70, $0.01 worse than the analyst estimate of $0.71. Revenue for the quarter came in at $213.1 million versus the consensus estimate of $216.73 million.

Third quarter 2018 financial results:

• Total revenues were $213.1 million.
  • GAAP operating income was $25.7 million, or 12.0% of total revenues, and non-GAAP operating income was $35.6 million, or 16.7% of total revenues.
  • GAAP earnings per diluted share (EPS) was $0.49. Non-GAAP EPS was $0.70.
  • Cash flows from operations were $47.1 million.
• CSG declared its quarterly cash dividend of $0.21 per share of common stock, or a total of approximately $7 million, to shareholders.
• In September 2018, CSG announced a Board-approved capital allocation strategy, which included authorization to repurchase up to $150 million of CSG common stock over the next three years.
• On October 1, 2018, CSG acquired Forte Payment Systems, Inc., a leading provider of advanced payment solutions, based in Allen, Texas.

“This quarter reflects the balanced approach we took to drive business and shareholder value,” said Bret Griess, president and chief executive officer for CSG. “In addition to the ongoing investment and focus that we have put into our people, our solutions and our clients, we also enhanced and expanded our addressable market with the acquisition of Forte Payment Systems, an innovator in the payments space. And, thanks to the strong cash we generate from our highly visible and recurring revenues, going forward we will be able to return even more cash to our shareholders in the form of increased share repurchases. We take these actions with one goal in mind, which is to increase our revenues and earnings.”

GUIDANCE:

CSG Systems sees FY2018 EPS of $2.81-$2.93, versus the consensus of $2.87. CSG Systems sees FY2018 revenue of $853-863 million, versus the consensus of $854.27 million.

For earnings history and earnings-related data on CSG Systems (CSGS) click here.