CSG Systems International (CSGS, Financial) reported impressive first-quarter revenue of $299.5 million, surpassing market expectations of $272.84 million. According to the company, a significant portion of this growth was driven by non-traditional sectors outside of their usual communication service provider customer base. Currently, one-third of its revenue stems from major, rapidly expanding industry verticals, which provides some resilience amid current economic uncertainties.
Boosted by this performance, CSG has decided to increase its profitability and earnings per share guidance targets for 2025. The company's leadership emphasized the value of CSGS as a robust investment option, highlighting its consistent sales achievements, solid financial standing, and a track record of increasing dividends over the past 12 years. Furthermore, CSG has committed to returning over $100 million in capital to shareholders by 2025, strengthening the case for its long-term appeal and stability.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 8 analysts, the average target price for CSG Systems International Inc (CSGS, Financial) is $73.50 with a high estimate of $85.00 and a low estimate of $58.00. The average target implies an upside of 20.13% from the current price of $61.19. More detailed estimate data can be found on the CSG Systems International Inc (CSGS) Forecast page.
Based on the consensus recommendation from 10 brokerage firms, CSG Systems International Inc's (CSGS, Financial) average brokerage recommendation is currently 1.6, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for CSG Systems International Inc (CSGS, Financial) in one year is $60.80, suggesting a downside of 0.63% from the current price of $61.185. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the CSG Systems International Inc (CSGS) Summary page.
