Sykes Enterprises, Incorporated (SYKE) has reported a 6.30 percent rise in profit for the quarter ended Sep. 30, 2016. The company has earned $21.27 million, or $0.50 a share in the quarter, compared with $20.01 million, or $0.48 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $23.15 million, or $0.55 a share compared with $22.54 million or $0.54 a share, a year ago.
Revenue during the quarter grew 21.33 percent to $385.74 million from $317.92 million in the previous year period. Gross margin for the quarter expanded 7 basis points over the previous year period to 35.23 percent. Total expenses were 92.31 percent of quarterly revenues, up from 92.29 percent for the same period last year. That has resulted in a contraction of 2 basis points in operating margin to 7.69 percent.
Operating income for the quarter was $29.67 million, compared with $24.51 million in the previous year period.
However, the adjusted operating income for the quarter stood at $32.94 million compared to $28.40 million in the prior year period. At the same time, adjusted operating margin contracted 40 basis points in the quarter to 8.54 percent from 8.93 percent in the last year period.
For the fourth-quarter 2016, Sykes Enterprises, Incorporated forecasts revenue to be in the range of $389 million to $394 million. The company expects diluted earnings per share to be in the range of $0.39 to $0.42. On an adjusted basis, the company expects diluted earnings per share to be in the range of $0.48 to $0.51.
For fiscal year 2016, Sykes Enterprises, Incorporated forecasts revenue to be in the range of $1,460 million to $1,465 million. The company expects diluted earnings per share to be in the range of $1.45 to $1.48. The company expects diluted earnings per share to be in the range of $1.79 to $1.82 on adjusted basis.
Working capital increases
Sykes Enterprises, Incorporated has recorded an increase in the working capital over the last year. It stood at $422.06 million as at Sep. 30, 2016, up 8.43 percent or $32.81 million from $389.25 million on Sep. 30, 2015. Current ratio was at 3.02 as on Sep. 30, 2016, down from 3.35 on Sep. 30, 2015.
Days sales outstanding went down to 32 days for the quarter compared with 80 days for the same period last year.
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