Tuesday, November 10, 2020

Information Services (III)

Beats 3Q Expectations, Continues to Move Forward in a COVID World

ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 700 clients, including more than 70 of the top 100 enterprises in the world, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including automation, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,300 digital-ready professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data. For more information, visit www.isg-one.com

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

3Q20 Operating Results. Third quarter results came in better than expected, with revenue of $61.6 million and adjusted EBITDA of $8.2 million. Management had forecast revenue in the $53-$55 million range and adjusted EBITDA in the $6-$7 million range. EPS for the quarter was $0.04 and adjusted EPS was $0.10. We had forecast revenue of $53 million, adjusted EBITDA of $6.8 million, EPS of $0.01, and $0.05 per share of adjusted EPS.

Geographies.  Revenues were $35.0 million in the Americas, up 11% sequentially and down 13% versus the prior year; $20.9 million in Europe, flat sequentially and down 7% on a reported basis (down 11% in constant currency) versus the prior year; and $5.7 million in Asia Pacific, up 19% sequentially and up 8% on a reported basis (and up 4% in constant currency) versus the prior year. Recurring ...

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision.