Sykes Enterprises Inc (SYKE) has reported a 10.02 percent fall in profit for the quarter ended Dec. 31, 2016. The company has earned $18.03 million, or $0.43 a share in the quarter, compared with $20.04 million, or $0.48 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $22.15 million, or $0.52 a share compared with $23.35 million or $0.55 a share, a year ago.
Revenue during the quarter grew 15.38 percent to $389.15 million from $337.28 million in the previous year period. Gross margin for the quarter contracted 143 basis points over the previous year period to 35.03 percent. Total expenses were 92.57 percent of quarterly revenues, up from 91.40 percent for the same period last year. That has resulted in a contraction of 117 basis points in operating margin to 7.43 percent.
Operating income for the quarter was $28.90 million, compared with $29 million in the previous year period.
However, the adjusted operating income for the quarter stood at $35.31 million compared to $32.79 million in the prior year period. At the same time, adjusted operating margin contracted 65 basis points in the quarter to 9.07 percent from 9.72 percent in the last year period.
For the first-quarter, Sykes Enterprises expects revenue to be in the range of $380 million to $385 million. Sykes Enterprises expects revenue to be in the range of $1,580 million to $1,600 million for financial year 2017. The company projects diluted earnings per share to be in the range of $0.28 to $0.32 for the first-quarter. For financial year 2017, the company projects diluted earnings per share to be in the range of $1.59 to $1.71. On an adjusted basis, the company projects diluted earnings per share to be in the range of $0.37 to $0.41 for the first-quarter. For financial year 2017, the company projects diluted earnings per share to be in the range of $1.95 to $2.07 on adjusted basis.
Working capital increases marginally
Sykes Enterprises Inc has recorded an increase in the working capital over the last year. It stood at $420.38 million as at Dec. 31, 2016, up 2.57 percent or $10.52 million from $409.86 million on Dec. 31, 2015. Current ratio was at 3.07 as on Dec. 31, 2016, down from 3.68 on Dec. 31, 2015.
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