Dim CSG Forecast Hits Stock

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Despite beating analysts' estimates for the third quarter, CSG Systems
International Inc.'s stock sank to a new 52-week low Tuesday.

The reason: CSG said 2002 results would not meet analysts' expectations.

CSG, which provides billing services to cable operators, said in a conference
call Monday after market close that cable consolidation has hurt the
decision-making process for buying CSG's services.

In the third quarter, earnings rose 26 percent to $29.6 million, or 54 cents
per share, beating analysts' consensus estimates by a penny. Revenue rose 22
percent to $124.4 million and cash flow rose 24 percent to $52.3 million.

Investors focused on the year-end and 2002 estimates, sending CSG stock into
a tailspin Tuesday. The stock closed at $31.76 per share, down $7.44 (19
percent).

CSG's previous 52-week low was $35.02.

CSG chairman and CEO Neal Hansen told analysts on a conference call that
although the company was reiterating 2001 guidance, it would come in at the low
end of those estimates.

CSG had estimated yearly revenue of $475 million to $495 million. Earnings
per share would remain unchanged at $2.04.

That prompted at least two analysts to revise ratings, with UBS Warburg LLC
and Credit Suisse First Boston lowering earnings estimates for CSG
Tuesday.

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