CSGS Earnings Prediction
The chart below shows how CSGS performed 10 days before and after its earnings report, based on data from the past quarters. Typically, CSGS sees a +1.18% change in stock price 10 days leading up to the earnings, and a +1.28% change 10 days following the report. On the earnings day itself, the stock moves by -0.10%. This data can give you a slight idea of what to expect for the next quarter's release.
CSGS Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
316.65M
6.50%
7.29%
Gross Margin
49.62%
9.17%
4.35%
Operating Margin
13.81%
25.66%
17.23%
Net Margin
10.89%
155.63%
68.32%
EPS
1.21
175.00%
80.60%
No Data Available
CSGS Earnings Analysis
CSG Systems International Inc Corporation (CSGS.O) Earnings Conference Call
Positive
Record Quarterly Revenue Growth: CSG Systems International, Inc. reported a record quarterly revenue of $317 million in Q4 2024, reflecting a 7% year-over-year growth, driven by strong sales in SaaS and related solutions.
Operating Income Surge: Non-GAAP adjusted operating income increased by 32% year-over-year to $58 million, achieving a non-GAAP adjusted operating margin of 20.1% in Q4 2024, compared to 16.1% in the prior year.
Q4 2024 EBITDA Growth: Adjusted EBITDA for Q4 2024 grew 21% year-over-year to $72 million, resulting in a margin of 24.8%, showcasing significant profitability improvements.
Record EPS Growth: Earnings per share (EPS) reached a record $1.65 in Q4 2024, representing a remarkable 79% year-over-year growth, primarily due to higher operating income and share repurchases.
Free Cash Flow Growth: CSG generated $113 million in non-GAAP adjusted free cash flow for 2024, marking a 9% increase from the previous year, with expectations for continued growth in free cash flow in the coming years.
Negative
Customer Revenue Growth Stagnation: Reported a 3% year-over-year increase in revenue from top customers Comcast and Charter, indicating potential stagnation in growth from key accounts.
Operating Margin Guidance 2025: Non-GAAP adjusted operating margin guidance for 2025 is projected to be between 18.1% to 18.5%, which is only a slight improvement from the previous year's 18.1%.
One-Time Tax Benefit Impact: The non-GAAP effective income tax rate provided a one-time benefit of approximately $0.20 per share in Q4 2024, which is not expected to recur in 2025, indicating a potential decline in EPS.
Net Debt Leverage Ratio: The company ended 2024 with $389 million in net debt, resulting in a net debt leverage ratio of 1.5x adjusted EBITDA, suggesting a reliance on debt for operations.
2025 Organic Revenue Forecast: Forecasted organic revenue for 2025 is expected to range from $1.21 billion to $1.25 billion, which reflects a modest growth outlook compared to previous years.
CSGS FAQs
How does CSGS typically perform around its earnings report dates?
Is CSG Systems International Inc (CSGS) Q4 2024 Earnings Call Summary positive or negative?
How can historical earnings data help predict future stock performance?
CSGS Earning Call Sentiment
CSG Systems International, Inc. (NASDAQ:CSGS) Q4 2024 Earnings Call Transcript
CSGS.O
-1.28%Positive
The earnings call reveals strong financial performance with revenue and operating income growth, increased dividends, and a healthy pipeline. Despite some regulatory and integration risks, the company has shown improved profitability and cost management. The Q&A session indicates a positive outlook on business transformation and diversification, with analysts appearing satisfied with management's responses. However, the guidance is on the lower end, which tempers the overall sentiment. Given the company's small-cap status, the positive aspects are likely to lead to a stock price increase in the short term.
