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
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$62 mln
$60 mln (5 Analysts)
Q2 EPS
$0.04
Q2 Adjusted Net Income
Beat
$4.10 mln
$3.52 mln (4 Analysts)
Q2 Adjusted EBITDA
Beat
$8.30 mln
$7.25 mln (5 Analysts)
Q2 Adjusted EBITDA Margin
13.5%
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.)