Information Services Group (NASDAQ: III) reported Q4 EPS of $0.05, $0.07 worse than the analyst estimate of $0.12. Revenue for the quarter came in at $67.9 million versus the consensus estimate of $72.67 million.

"2018 was another year of great progress for ISG," said Michael P. Connors, chairman and CEO. "Continuing our Go Digital journey, we delivered record revenues in both the fourth quarter and full year as we focused on evolving our product and service portfolio to meet the growing digital needs of our clients. Digital services represented more than 45 percent of our revenues in the fourth quarter and for the full year topped $100 million for the first time. We expect these numbers to increase as more of our work focuses on helping clients transform their businesses for greater efficiency and faster growth.

"We delivered a particularly strong performance in Europe, with revenues up 18 percent in the fourth quarter and 15 percent for the year, driven by increasing penetration of our digital services across all markets. Our fourth-quarter and full-year revenue in the Americas, meanwhile, was impacted by sluggishness in the U.S. public sector business and the timing of several client engagements.

"ISG continues to grow both in importance and value with our clients, especially as we guide them on their digital transformation journeys. That gives us great confidence in our growth prospects for the future."

GUIDANCE:

Information Services Group sees FY2019 revenue of $276-285 million, versus the consensus of $297.29 million.

"For 2019, ISG is targeting revenues of between $276-$285 million and adjusted EBITDA of between $33-$35 million. We expect currency headwinds to impact results in the first half and we are taking a cautious approach to the macro-economic environment. We anticipate the next update to our guidance will be in August, when we announce second-quarter results," said Connors.

For earnings history and earnings-related data on Information Services Group (III) click here.