NASDAQ$CSGS

CSG Systems International Inc · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Reported record revenues, increased operating income, and earnings per share.

CSG Systems International reported a solid fourth quarter and full year with record revenue, driven by growth in cloud solutions and managed services. The company also extended its contract with Comcast and acquired certain assets of Tekzenit, Inc.

  • Total revenues were $254.7 million, a 3% increase compared to Q4 2018.
  • GAAP operating income was $30.3 million, representing 11.9% of total revenues.
  • GAAP earnings per diluted share (EPS) was $0.70.
  • Cash flows from operations were $43.5 million, with non-GAAP free cash flow of $33.9 million.

Headline financials

Total Revenue

$255M

Previous: $247M+3.0%
EPS (adj)

$0.98

Previous: $0.95+3.2%
Operating Margin Percentage

11.9%

No prior period
Adjusted Operating Margin Percentage

17.5%

No prior period
Capital Expenditures

$9.61M

Previous: $13.1M-26.4%
Free Cash Flow

$33.9M

Previous: $57M-40.5%
Net Income

$22.6M

Previous: $20.9M+8.1%
Operating Income

$30.3M

Previous: $29.4M+2.8%
Gross Profit

$123M

Previous: $117M+4.9%
Cash & Equivalents

$157M

Previous: $139M+12.4%
Total Assets

$1.28B

Previous: $1.11B+15.1%
Stock-Based Comp

$6.62M

Previous: $4.55M+45.5%

Revenue & EPS history

CSG Systems · Revenue · Quarterly

$255M

Q4 2019+3%vs Q4 2018
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

CSG Systems · $262M total across 3 segments · Q2 2022

  • Broadband/Cable/Satellite
    $144M-2.6%
  • All other
    $68.2M+11.3%
  • Telecommunications
    $49.8M+8.5%

Forward guidance

CSG updated its initial financial guidance for the full year 2020 following the announcement of its contract extension with Comcast.

Tailwinds

  • Revenue guidance: $990 - $1,030 million
  • Adjusted Revenue guidance: $917 - $950 million
  • Operating Margin Percentage: 11.5% - 12.5%
  • Adjusted Operating Margin Percentage: 16.0% - 17.0%
  • EPS guidance: $2.13 - $2.46

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q4 2019

Historical avgQ4 2019

+1.6%

Avg return

Earnings day

+1.2%

Avg return

5 days after

+2.2%

Avg return

30 days after

58%

38 / 66 earnings

Positive

+15.6%

Q2 2023

Best reaction

-19.0%

Q4 2016

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.0%+0.4%
Q4 2025+0.5%+0.3%+0.5%
Q3 2025-0.2%+0.2%-1.6%
Q2 2025+1.2%-1.3%+3.4%
Q1 2025+6.5%+6.9%+5.0%
Q4 2024+5.5%+2.3%+4.0%
Q3 2024+14.3%+14.9%+10.9%
Q2 2024+7.6%+6.4%+7.0%
Q1 2024-11.0%-9.2%-8.7%
Q4 2023+14.9%+17.8%+14.3%
Q3 2023+3.4%+7.4%+12.6%
Q2 2023+15.6%+5.9%+6.2%
Q1 2023-3.1%-5.0%-0.9%
Q4 2022+3.8%+1.9%-4.3%
Q3 2022-8.4%-7.0%-2.9%
Q2 2022-13.6%-13.3%-12.4%
Q1 2022-2.5%-4.4%+2.1%
Q4 2021+2.7%+1.0%+10.2%
Q3 2021+5.1%+6.8%+5.2%
Q2 2021+2.4%+1.8%+7.8%
Q1 2021-1.3%-0.9%-6.7%
Q4 2020-0.0%+1.2%+4.0%
Q3 2020+1.6%+6.6%+10.8%
Q2 2020-0.8%+1.5%-5.8%
Q1 2020-3.1%-3.2%+2.8%
Q4 2019-0.1%+0.6%-15.4%
Q3 2019+10.5%+9.6%+9.6%
Q2 2019+4.4%+2.7%+10.0%
Q1 2019+7.4%+6.0%+0.4%
Q4 2018+11.6%+11.7%+12.3%
Q3 2018+2.4%+4.0%-8.4%
Q2 2018-4.8%-5.3%-8.2%
Q1 2018-7.8%-10.4%-4.9%
Q4 2017+2.0%+1.6%+6.9%
Q3 2017+6.0%+4.2%+6.6%
Q2 2017-4.3%-7.2%-7.5%
Q1 2017+5.6%+3.9%+8.8%
Q4 2016-19.0%-18.8%-19.4%
Q3 2016+12.1%+6.3%+18.9%
Q2 2016+3.6%+1.6%+11.1%
Q1 2016-6.8%
Q4 2015+10.5%
Q3 2015+11.4%
Q2 2015+6.8%
Q1 2015+3.3%
Q4 2014+14.5%
Q3 2014-3.2%
Q2 2014+1.3%
Q1 2014-4.0%
Q4 2013-6.6%
Q3 2013+3.0%
Q2 2013+4.5%
Q1 2013-5.1%
Q4 2012+6.1%
Q3 2012-2.6%
Q2 2012+11.0%
Q1 2011+1.5%
Q1 2012+2.9%
Q4 2009-1.1%
Q4 2011-1.1%
Q3 2011-2.4%
Q3 2010-2.4%
Q2 2010-2.7%
Q4 2010-2.7%
Q2 2011-2.7%
Q1 2010+2.4%

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