Convergys Corp.'s (CVG) posted a narrower third-quarter loss on
smaller write-downs, as well as new business signings and
continuing solid margins in its customer-management business.
The provider of integrated billing, employee care and
customer-care services also forecast fourth-quarter earnings,
excluding items, of at least 30 cents a share on revenue of $650
million to $670 million. Analysts were expecting earnings of 26
cents a share on revenue of $667 million.
Business-services providers have been hurt by an overall
pullback in corporate spending as the economy languishes.
Convergys said its third-quarter loss narrowed to $86 million,
or 70 cents a share, from $140 million, or $1.15 a share. Excluding
charges, including a year-ago $272.9 million charge related to
human resources management contracts, earnings fell to 27 cents a
share from 29 cents a share.
Revenue rose 13% to $765.4 million, including $106 million in
deferred revenue from an HR-unit contract.
Analysts polled by Thomson Reuters were expecting earnings,
excluding items, of 23 cents a share on revenue of $653
million.
Customer-management profit, excluding items, rose 61% on a 2%
revenue rise and sharply higher margins. The much-smaller
information-management segment, which offers bill processing
services and software to telecommunications companies, had a 47%
earnings drop as revenue fell 26%.
Convergys shares closed at $10.66 and didn't trade premarket.
The stock has surged 66% this year.
-By Mike Barris, Dow Jones Newswires; 212-416-2330;
mike.barris@dowjones.com