Morning Stock Review: CSG Systems International, Inc. (NASDAQ: CSGS)

CSG Systems International, Inc. (NASDAQ: CSGS) stock recorded daily change of 0.42% to close at $57.02 with the total traded volume of 648841 shares along average volume of 231691 shares. 52-week range of the stock remained $ 30.4 – 58.25 while its day low price was $56.16 and its hit its day high price at $57.07. Its previous closing value stands at $56.78. CSGS total market capitalization is $1878637955. Currently stocks EPS is $2.49 while its price to earnings ratio is 22.86

CSG (CSGS), the trusted partner to simplify the complexity of business transformation in the digital age, recently stated results for the quarter ended September 30, 2019.

Key Highlights:

• Third quarter 2019 financial results:
  • Total revenues were $251.4Mand total non-GAAP adjusted revenues were $235.1M.
  • GAAP operating income was$33.4M, or 3% of total revenues, and non-GAAP operating income was $42.7M, or 18.2% of non-GAAP adjusted revenues.
  • GAAP earnings per diluted share (EPS) was $0.66and non-GAAP EPS was $0.88.
  • Cash flows from operations were $79.1M.
• CSG reported its quarterly cash dividend of $0.2225per share of ordinary stock, or a total of about $7M, to shareholders.
• During the quarter, CSG repurchased about 90,000 shares of its ordinary stock for about $5M (weighted-average price of $51.09 per share) under its stock repurchase program.

Results of Operations

GAAP Results: Total revenues for the third quarter of 2019 were $251.4M, an 18% increase when contrast to revenues of $213.1M for the third quarter of 2018, and a 2% increase when contrast to $245.9M for the second quarter of 2019. The year-over-year increase in revenues is primarilyBecause of the acquisition of Forte on October 1, 2018, and the continued growth in our cloud solutions and managed services arrangements, while the sequential quarterly increase can be mainly attributed to stronger third quarter software, services, and maintenance revenues.

GAAP operating income for the third quarter of 2019 was $33.4M, or 13.3% of total revenues, contrast to $25.7M, or 12.0% of total revenues, for the third quarter of 2018, and $30.3M, or 12.3% of total revenues, for the second quarter of 2019.

GAAP EPS for the third quarter of 2019 was $0.66 as contrast to $0.49 for the third quarter of 2018, and $0.60 for the second quarter of 2019. The increases in GAAP EPS between periods is reflective of the higher operating margin for the third quarter of 2019.

Balance Sheet and Cash Flows

Cash, cash equivalents and short-term investments as of September 30, 2019 were $172.0M contrast to $131.5M as of June 30, 2019 and $162.9M as of December 31, 2018. CSG had net cash flows from operations for the third quarters ended September 30, 2019 and 2018 of $79.1M and $47.1M, respectively, and had non-GAAP free cash flow of $69.3M and $29.7M, respectively. For the nine months ended September 30, 2019 and 2018, CSG generated net cash flows from operations of $107.5M and $73.3M, respectively, and had non-GAAP free cash flow of $79.8M and $29.2M, respectively.

CSGS has a gross margin of 47.10% and an operating margin of 12.70% while its profit margin remained 8.20% for the last 12 months. Its earnings per share (EPS) expected to touch remained 12.00% for this year while earning per share for the next 5-years is expected to reach at -5.00%. According to the most recent quarter its current ratio was 1.7 that represents company’s ability to meet its current financial obligations. The price moved ahead of 5.85% from the mean of 20 days, 8.04% from mean of 50 days SMA and performed 19.50% from mean of 200 days price. Company’s performance for the week was 3.20%, 11.28% for month and YTD performance remained 79.48%.