Computer Task Group Earnings: Here’s Why Shares are Down Now
Computer Task Group Inc. (NASDAQ:CTGX) delivered a profit and met Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 0.05%.
Computer Task Group Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 20% to $0.24 in the quarter versus EPS of $0.20 in the year-earlier quarter.
Revenue: Rose 4.96% to $108.5 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Computer Task Group Inc. reported adjusted EPS income of $0.24 per share. By that measure, the company met the mean analyst estimate of $0.24. It beat the average revenue estimate of $108.33 million.
Quoting Management: “CTG is reporting another excellent quarter, delivering results consistent with our expectations with revenue above the mid-point of guidance, even with this quarter having one less billing day than the 2012 first and fourth quarters,” said CTG Chairman and Chief Executive Officer James R. Boldt. “Revenue in our staffing business was bolstered in the quarter by increased demand for technical resources as clients are becoming more confident in the sustainability of the domestic and global economic recovery. Our European operations continue to be in a growth mode with revenue up 13% in the quarter primarily based on increased business in our testing, healthcare, government and financial services practices. Healthcare revenue increased to 32% of total revenue from 31% a year ago though its growth was muted in the quarter as three large electronic medical records (NYSE:EMR) projects awarded in February will not be staffed until the second quarter of 2013. Additionally, we started an ICD-10 remediation project in the first quarter and expect to begin two large legacy application management engagements in the second quarter.”
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