Friday, March 12, 2021
Information Services (III)
Better than Expected 4Q20 Results
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.
4Q20 Results. Revenue of $66.4 million, up 8% sequentially and up 1% year over year, although down 1% on a constant currency basis. Excluding the impact of reimbursable T&E, revenues were up 5%, y-o-y. Adjusted EBITDA of $9 million, up 11% sequentially and down slightly from the $9.2 million in the 4Q19. EPS of $0.03 versus $0.04. Adjusted EPS of $0.10 flat with the year ago period. We had projected revenue of $56 million, adjusted EBITDA of $7.4 million, EPS of $0.04, and adjusted EPS of $0.07. Consensus called for revenue of $56.2 million and EPS of $0.06.
Behind the Beat. Solid sequential revenue growth in the Americas and Europe drove results. Americas revenue was up 8% sequentially and 6% y-o-y. Europe was up 10% sequentially and 1% y-o-y. Clients continued to seek out ways to become more efficient while setting up to prosper in the new digital environment. Digital revenues topped 50% of total revenue and recurring revenues hit 33% of the …
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.
