Friday, March 15, 2019

Information Services Group (III)

Record 4Q Revenues But Why the Miss On Consensus Numbers?

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to full report for price target, fundamental analysis and rating.

• Record 4Q and Full Year Revenues. III reported record 4Q revenue of $67.9 million and record full year revenue of $275.8 million. Adjusted EBITDA came in at $8.6 million for the quarter and $33 million for the year. Management had guided to revenue in the $280-$285 million range and adjusted EBITDA in the $35-$37 million range.
• Europe the Growth Driver Again. While Europe was up 18% y-o-y to $25.3 million, the Americas business was down 3% to $38.1 million due to ongoing softness in the U.S. public sector and timing of client engagements, and Asia Pacific declined by $1.4 million to $4.5 mill... 

*Analyst certification and important disclosures included in 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.