Movers and SHAKERS
Information Services (III)
First Quarter In-Line but COVID Impacting 2Q
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.
1Q20 Results. Revenue totaled $63.7 million, in-line with our $64 million estimate. GAAP net loss was $0.03 versus our $0.01 loss estimate with the difference mostly in higher interest expenses and a lower tax benefit than we had forecast. Adjusted EPS was $0.02 for the quarter versus our $0.04 projection. Adjusted EBITDA for the quarter was $3.5 million compared to our $4.25 million estimate.
Solid Cash Flow in Quarter, Balance Sheet Remains a Strength. For the quarter, ISG CFFO totaled $4.6 million, compared to $1.3 million in the year ago period. ISG repurchased $3.4 million of stock in the quarter. Cash at quarter's end was $17.5 million and the Company will benefit in this time of crisis from its recently amended credit agreement which reduces annual principal payments by 61% to $4.3 million, lowers borrowing costs, and provides access to a...
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.