Stock Monitor: Science Applications International Post Earnings Reporting

LONDON, UK / ACCESSWIRE / December 18, 2017 / Active-Investors free earnings report on Sykes Enterprises, Inc. (NASDAQ: SYKE) ("Sykes") has freshly been issued to its members, and you can also sign up to view this report at www.active-investors.com/registration-sg/?symbol=SYKE. The Company posted its financial results on November 06, 2017, for the third quarter of the fiscal year 2017. The outsourcing Company's revenue and adjusted EPS surpassed analysts' expectations. Register today and get free access to our complimentary member's area where many more reports are available:

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Active-Investors.com is currently working on the research report for Science Applications International Corporation (NYSE: SAIC), which also belongs to the Technology sector as the Company Sykes Enterprises. Do not miss out and become a member today for free to access this upcoming report at:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Sykes Enterprises most recent news is on our radar and we have decided to include it on our blog post. Today's free coverage is available at:

www.active-investors.com/registration-sg/?symbol=SYKE

Earnings Highlights and Summary

For the three months ended September 30, 2017, Sykes' revenue increased 5.6%, or 5.2% on a constant currency basis, to $407.31 million from $385.74 million in Q3 FY16. The Company's revenue numbers surpassed analysts' expectations of $399.5 million.

For the reported quarter, the Company's seat capacity was 52,400 compared to 47,400 in Q3 FY16. For the reported quarter, the Company's capacity utilization was 71% compared to 75% in Q3 FY16.

During Q3 FY17, Sykes' operating income decreased 11.6% to $26.23 million from $29.67 million in the same period of last year. For the reported quarter, the Company's operating margin decreased 130 basis points to 6.4% of revenue from 7.7% of revenue in Q3 FY16, due to sub-optimized revenues from the acquired customer engagement assets in the second quarter of 2017, and operational inefficiencies around recruitment and retention in the US. During Q3 FY17, Sykes' adjusted operating income increased 1.6% to $33.48 million from $32.94 million in Q3 FY16. For the reported quarter, the Company's adjusted operating margin decreased 30 basis points to 8.2% of revenue from 8.5% of revenue in Q3 FY16.

During Q3 FY17, Sykes' earnings before tax (EBT) decreased 16.3% to $24.44 million from $29.21 million in the comparable period of last year. For the reported quarter, the Company's EBT margin decreased 160 basis points to 6% of revenue from 7.6% of revenue in Q3 FY16.

For the reported quarter, Sykes' net income increased 2% to $21.70 million on a y-o-y basis from $21.27 million in Q3 FY16. During Q3 FY17, the Company's diluted earnings per share (EPS) increased 4% to $0.52 on a y-o-y basis from $0.50 in the corresponding period of last year. For the reported quarter, Sykes' adjusted net income increased 13% to $26.17 million on a y-o-y basis from $23.15 million in Q3 FY16. During Q3 FY17, the Company's adjusted diluted EPS increased 12.7% to $0.62 on a y-o-y basis from $0.55 in Q3 FY16, surpassing analysts' expectations of $0.44.

Segment Details

Americas - During Q3 FY17, the Company's Americas segment's revenue increased 4.7% to $341.33 million from $326.01 million in the same period of last year. For the reported quarter, the segment's operating income decreased 2.8% to $35.90 million from $36.95 million in Q3 FY16. For the reported quarter, the segment's adjusted operating income was at par with the $42.41 million recorded in Q3 FY16.

Europe, Middle-East, and Africa (EMEA) - During Q3 FY17, the Company's EMEA segment's revenue increased 10.5%, or 7.7% on a constant currency basis, to $65.96 million from $59.71 million in the comparable period of last year. The increase was due to new client wins as well as existing and new program expansions principally within the technology and communications verticals. For the reported quarter, the segment's operating income decreased 38.8% to $4.52 million from $7.39 million in Q3 FY16. For the reported quarter, the segment's adjusted operating income decreased 19% to $4.17 million from $5.15 million in Q3 FY16.

Other - During Q3 FY17, the Company's Other segment's revenue decreased 5.3% to $18 million from $19 million in the corresponding period of last year. For the reported quarter, the segment's operating loss was $14.19 million compared to an operating loss of $14.67 million in Q3 FY16. For the reported quarter, the segment's adjusted operating loss was $13.10 million compared to an adjusted operating loss of $14.63 million in Q3 FY16.

Balance Sheet

During Q3 FY17, Sykes' cash provided by operating activities increased 21% to $46.81 million from $38.69 million in the same period of last year. For the reported quarter, the Company's capital expenditure decreased 49.6% to $12.57 million from $24.94 million in Q3 FY16.

Outlook

For Q4 FY17, the Company expects diluted EPS to be in the range of $0.30 - $0.32, and adjusted diluted EPS to be in the band of $0.39 - $0.41.

For FY17, the Company expects diluted EPS to be in the range of $1.46 - $1.49, and adjusted diluted EPS to be in the band of $1.91 - $1.94.

Stock Performance Snapshot

December 15, 2017 - At Friday's closing bell, Sykes Enterprises' stock advanced 1.29%, ending the trading session at $31.42.

Volume traded for the day: 392.35 thousand shares, which was above the 3-month average volume of 179.08 thousand shares.

Stock performance in the last month ? up 8.31%; previous three-month period ? up 15.86%; past twelve-month period ? up 6.44%; and year-to-date ? up 8.87%

After last Friday's close, Sykes Enterprises' market cap was at $1.34 billion.

Price to Earnings (P/E) ratio was at 19.64.

The stock is part of the Technology sector, categorized under the Information Technology Services industry. This sector was up 0.9% at the end of the session.

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