Sykes Enterprises Inc Receives a Hold from Barrington

By Austin Angelo

Barrington analyst Vincent Colicchio maintained a Hold rating on Sykes Enterprises Inc (NASDAQ: SYKE) today. The company’s shares closed on Friday at $28.27.

Colicchio observed:

“We expect SYKES to report Q1/18 non-GAAP EPS of $0.27, which is less than the FactSet consensus of $0.28. Our forecast represents a year-over-year decline of 49% and a sequential decline of 42%. The year-over-year decline is due to lower gross margin assumptions. The margin outlook has deteriorated due to the negative impact of tightening labor markets and increased wage inflation in the U.S. market. Top-line outlook: We expect SYKES to report Q1/18 total revenue of $409.6 million in Q1/18, which is largely in line with the FactSet consensus of $409.4 million. Our forecast represents year-over-year growth of 7% and sequential decline of 2%. Our growth outlook is tempered by our expectation of continued weakness in the communications vertical, which has weakened due to lower spending from several key clients, including AT&T (T: NOT RATED), which is the company’s largest client.”

According to TipRanks.com, Colicchio is a 3-star analyst with an average return of 6.0% and a 54.1% success rate. Colicchio covers the Technology sector, focusing on stocks such as Exlservice Holdings, Convergys Corp, and Computer Task.

Sykes Enterprises Inc has an analyst consensus of Hold.

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Based on Sykes Enterprises Inc’s latest earnings release for the quarter ending December 31, the company reported a quarterly GAAP net loss of $17.04 million. In comparison, last year the company had a net profit of $18.71 million.

Based on the recent corporate insider activity of 88 insiders, corporate insider sentiment is negative on the stock.

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Sykes Enterprises, Inc. engages in the provision of multichannel demand generation and customer engagement services. The firm operates through the Americas and EMEA segments. The Americas segment is comprised of the United States, Canada, Latin America, Australia, and the Asia Pacific Rim. The EMEA segment includes Europe, the Middle East, and Africa.