Convergys (CVG) Stock Climbing on Q2 Earnings

NEW YORK (TheStreet) -- Shares of Convergys (CVG)  were rising 5.14% to $28.66 on heavy volume in mid-afternoon trading on Tuesday after the company posted earnings that topped analysts' expectations for the 2016 second quarter.

After yesterdays' closing bell, the Cincinnati-based customer management company reported adjusted earnings of 41 cents per diluted share, higher than analysts' projections of 37 cents per share.

Revenue declined 3% to $692.3 million from last year and was lower than Wall Street's estimates of $695.8 million.

"We generated strong operating income, EBITDA, EPS and free cash flow, and we also experienced strong new business signings in the second quarter," CEO Andrea Ayers said in a statement.

"While revenue came in slightly below our expectations due to call volume softness with clients in the communications industry, currently ramping programs and recent client wins keep us on track for organic constant currency revenue growth beginning later this year," Ayers added.

About 1.03 million of the company's shares were traded so far today vs. its average volume of 457,538 shares per day.

Separately, TheStreet Ratings Team has a "Buy" rating with a score of A- on the stock.

The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, increase in net income, largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels. 

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

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