Convergys Posts Revenue Shortfall, Lowers Guidance

The company met analyst estimates but said its revenue came in below expectations.

Author:: Michael Dunn
Publish date:: Apr 24, 2002 8:21 AM EDT

Convergys

(CVG)

said its first-quarter results were in line with analysts' lowered estimates, but the company reduced its guidance for the rest of the year.

The integrated customer care and billing company reported first-quarter net income of $59.6 million, or 35 cents a share, up slightly from last year's 34 cents. Analysts polled by Thomson Financial were expecting the company to report 35 cents.

Revenue for the quarter came in short at $587.5 million, down from $591.5 million in the year-ago quarter and below analyst estimates of $598.7 million.

The company said in a press release that demand for new services remains weak and wireless carriers have reduced their forecast for subscriber growth, affecting the company's quarterly revenue.

For the rest of the year, the company lowered its guidance, saying it now expects full-year EPS of $1.53 to $1.58, compared with the First Call estimate of $1.59. For the second quarter, Convergys expects EPS of 34 cents to 36 cents, also below Wall Street's estimate of 38 cents.

Shares of CVG closed at $28.90 Tuesday.