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III — Information Services News Story

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Brief: Information Services Group Q2 EPS USD 0.04

Overview

ISG Q2 revenue up 7% yr/yr, beating analyst expectations, per LSEG data

Adjusted EBITDA rises 17%, beating estimates, per LSEG data

Co to acquire Martino & Partners, expanding presence in Italy, deal to close in September

Outlook

Company expects Q3 revenue between $60.5 mln and $61.5 mln

ISG targets Q3 adjusted EBITDA of $7.5 mln to $8.5 mln

Result Drivers

AMERICAS GROWTH - Revenue in the Americas rose 16% yr/yr, excluding divested automation unit, driving overall revenue increase

CASH FLOW - Generated $12 mln in cash from operations, significantly up from $2.2 mln prior year, marking one of the best quarters for cash generation

Key Details

MetricBeat/MissActualConsensus Estimate
Q2 RevenueBeat$62 mln$60 mln (5 Analysts)
Q2 EPS$0.04
Q2 Adjusted Net IncomeBeat$4.10 mln$3.52 mln (4 Analysts)
Q2 Adjusted EBITDABeat$8.30 mln$7.25 mln (5 Analysts)
Q2 Adjusted EBITDA Margin13.5%
Q2 Operating Income$4.70 mln
Analyst Coverage The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell" The average consensus recommendation for the it services & consulting peer group is "buy." Wall Street's median 12-month price target for Information Services Group Inc is $5.75, about 26.3% above its August 5 closing price of $4.24 The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 13 three months ago Press Release: ID:nBw3dPGQza (This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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