Call-center operator Sykes Enterprises (SYKE +12.38%) gets a boost after its Q3 fared better than Wall Street expected, helped by stronger demand in its financial services and communications business. The company also guided its Q4 higher, now expecting to earn between $0.28 to $0.33 per share on revenue in the range of $300M to $305M, above the Street view of $0.31 on $272M in revenue.
Call-center operator Sykes Enterprises (SYKE) agrees to acquire at-home agent provider Alpine Access for $150M in cash in an effort to strengthen its competitive position. SYKE also lowers its full-year guidance, citing uneven demand and an elongated sales cycle from macro-economic issues.
Sykes Enterprises (SYKE +7.1%) is upgraded to Outperform from Neutral at Baird after shares dipped 20% since it reported Q4 results and issued soft guidance a week ago. Baird foresees a rally in the next few months given "easing revenue comps, strong cash position, solid earnings power and attractive valuation."
In spite of beating Q4 EPS estimates, Sykes Enterprises (SYKE -15.6%) is falling hard thanks to its soft 2012 guidance. The BPO services provider, which was crushed in August following its Q2 report, says it expects Q1 revenue of $270M-$275M and EPS of $0.20-$0.23 (consensus of $300.7M and $0.30), and 2012 revenue of $1.095B-$1.11B and EPS of $1.10-$1.20 (consensus of $1.22B and $1.44). Sykes blames macro issues and an assortment of margin pressures.