TeleTech Holdings, Inc. (TTEC) share are surging following the latest earnings reports and analyst estimates.
Company Description
TeleTech is a global provider of outsourced business solutions. The services are centered around customer service and back-office processes.
EPS Beats the Street
Quarterly results released on Oct 28 included earnings per share of 32 cents, 9 cents higher than the Zacks Consensus Estimate. Revenues were down considerably, but the gross margin improved 3.3% to 30.9%.
Free cash flow for the quarter grew 7% to $54 million, since the same period last year. The company is also maintaining a net positive cash position of $106 million.
Estimates Pop
Following the report, analyst estimates came streaming in. In the past 7 days 8 of the 10 analysts providing estimates for this year raised their projections. The Zacks Consensus Estimate is now $1.19, up from $1.07, as the estimates were not weighed down by any lowered estimates.
After a similar jump for next year’s estimates, to $1.21, the annual growth rates are expected to be 10% and 2%, respectively.
Solid Value
One share of TTEC costs about 16 times forward earnings. The stock is also trading with a PEG ratio of just 0.7 times.
The Chart
Calling the session following the earnings release a volatile one is quite an understatement. However, shares ultimately finished higher and have since broken out of the trading range that had bound the stock. Take a look at the chart below.
