Outsourced customer contact management solutions and service provider Sykes Enterprises, Inc. (SYKE) reported Monday a 3.6% year-over-year decline in profit for the third quarter, hurt by a significant drop other income, despite a 3.1% revenue growth. Earnings per share for the quarter was down a penny, but significantly topped analysts' expectations. The company also issued its fourth-quarter guidance and raised its outlook for the full year 2009.
The Tampa, Florida-based company reported net income of $18.78 million or $0.46 per share for the third quarter, down from $19.49 million or $0.47 per share in the prior-year quarter.
On average, eight analysts polled by Thomson Reuters estimated earnings of $0.34 per share for the third quarter. Analysts' estimates typically exclude special items.
Revenues for the quarter increased 3.1% to $213.49 million from $207.07 million in the same quarter last year. Ten Wall Street analysts had a consensus revenue estimate of $211.96 million for the quarter. The strengthening of U.S. dollar negatively impacting revenues by $8.8 million. On a constant currency basis, revenues were up 7.4%.
Revenues from the Americas region rose 10.4% to $152.94 million or 71.6% of total revenues, while Europe, Middle East and Africa region revenues decreased 11.6% to $60.55 million, representing 28.4% of total revenues.
Income from operations for the third quarter grew to $20.69 million from $19.25 million in the prior-year quarter. Net other income for the quarter dropped to $0.48 million from $3.96 million in the year-ago quarter.
For the nine-month period, the company reported net income of $47.90 million or $1.17 per share, down from $52.93 million or $1.29 per share in the prior-year period.
Revenues for the period increased to $625.57 million from $618.42 million in the same period last year.
Looking ahead to the fourth quarter, the company expects earnings in a range of $0.32 to $0.35 per share on revenues between $213 million to $215 million. Analysts expect the company to report earnings of $0.34 per share for the quarter, on revenues of $211.96 million.
For fiscal 2009, the company raised its expects earnings forecast to a range of $1.49 to $1.52 per share on revenues between $839 million to $841 million from the prior earnings guidance in the range of $1.33 to $1.39 per share, and revenue forecast of $833 million to $837 million. The Street is looking for full year earnings of $1.38 per share on revenues of $836.49 million.
SYKE closed Monday's regular trading at $24.44, up $0.70 or 2.95% on a volume of 0.50 million shares.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.