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TeleTech Climbs on Earnings Beat

Share surge some 20% after a strong third-quarter earnings report.
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TeleTech Holdings

(TTEC) - Get TTEC Holdings, Inc. Report

shares surged more than 20% Thursday on heavy volume, a day after the Englewood, Colo., company delivered strong third-quarter results.

After the market close Wednesday, the business outsource provider reported net income of $12.8 million, or 18 cents a share, up from the $11.6 million, or 16 cents a share, it posted a year before, and beating the 13-cent analyst estimate provided by Thomson First Call.

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TeleTech posted revenue of $303.8 million, which was up from the $274.3 million it posted in the third quarter of 2005 but short of the $310 million that analysts were expecting.

Looking ahead, the company expects full-year 2006 revenue will grow roughly 11% to 12% over 2005. It believes fourth-quarter operating margin will increase to between 7% and 8%, higher than its previously stated goal of 6% to 7%, excluding any unusual charges.

Shares were up $2.67, or 16.9%, at $18.48 in recent trading Thursday, having briefly hit $19.32 and well above the stock's 52-week high of $16.42.