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Unlocking CSG Systems (CSGS) International Revenues: Trends, Surprises, and Prospects

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Have you assessed how the international operations of CSG Systems (CSGS - Free Report) performed in the quarter ended March 2025? For this provider of support services for the communications industry, possessing an expansive global footprint, parsing the trends of international revenues could be critical to gauge its financial resilience and growth prospects.

In the modern, closely-knit global economic landscape, the capacity of a business to access foreign markets is often a key determinant of its financial well-being and growth path. Investors now place great importance on grasping the extent of a company's dependence on international markets, as it sheds light on the firm's earnings stability, its skill in leveraging various economic cycles and its broad growth potential.

Being present in foreign markets serves as protection against local economic declines and helps benefit from more rapidly expanding economies. Yet, such expansion also introduces challenges related to currency fluctuations, geopolitical uncertainties and varied market behaviors.

Upon examining CSGS' recent quarterly performance, we noticed several interesting patterns in the revenue generated from its international segments, which are commonly analyzed and observed by Wall Street experts.

For the quarter, the company's total revenue amounted to $271.55 million, experiencing an increase of 0.6% year over year. Next, we'll explore the breakdown of CSGS' international revenue to understand the importance of its overseas business operations.

Unveiling Trends in CSGS' International Revenues

Of the total revenue, $27.04 million came from Europe, Middle East and Africa during the last fiscal quarter, accounting for 9.96%. This represented a surprise of -18.55% as analysts had expected the region to contribute $33.19 million to the total revenue. In comparison, the region contributed $32.59 million, or 11.22%, and $26.83 million, or 9.93%, to total revenue in the previous and year-ago quarters, respectively.

Asia-Pacific accounted for 4.81% of the company's total revenue during the quarter, translating to $13.07 million. Revenues from this region represented a surprise of +8.29%, with Wall Street analysts collectively expecting $12.07 million. When compared to the preceding quarter and the same quarter in the previous year, Asia-Pacific contributed $17.02 million (5.86%) and $13.77 million (5.10%) to the total revenue, respectively.

Revenue Forecasts for the International Markets

The current fiscal quarter's total revenue for CSG Systems, as projected by Wall Street analysts, is expected to reach $278.95 million, reflecting an increase of 4.8% from the same quarter last year. The breakdown of this revenue by foreign region is as follows: Europe, Middle East and Africa is anticipated to contribute 12% or $33.55 million and Asia-Pacific 4.4% or $12.2 million.

For the entire year, the company's total revenue is forecasted to be $1.18 billion, which is an improvement of 7% from the previous year. The revenue contributions from different regions are expected as follows: Europe, Middle East and Africa will contribute 11.5% ($135.26 million) and Asia-Pacific 4.2% ($49.19 million) to the total revenue.

Closing Remarks

The dependency of CSG Systems on global markets for its revenues presents a mix of potential gains and hazards. Thus, monitoring the trends in its overseas revenues can be a key indicator for predicting the firm's future performance.

In an era of growing international interdependencies and escalating geopolitical disputes, Wall Street analysts are vigilant in tracking these trends for businesses with a global reach, in order to refine their predictions of earnings. It should be noted, however, that a multitude of other elements, such as a company's domestic position, also play a significant role in shaping the earnings forecasts.

Emphasizing a company's shifting earnings prospects is a key aspect of our approach at Zacks, especially since research has proven its substantial influence on a stock's price in the short run. This correlation is positively aligned, meaning that improved earnings projections tend to boost the stock's price.

With an impressive externally audited track record, our proprietary stock rating tool - the Zacks Rank - harnesses the power of earnings estimate revisions and serves as an effective indicator of a stock's near-term price performance.

At present, CSG Systems holds a Zacks Rank #4 (Sell). This ranking implies that its near-term performance might underperform the overall market movement. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

A Look at CSG Systems' Recent Stock Price Performance

The stock has witnessed an increase of 10.9% over the past month versus the Zacks S&P 500 composite's an increase of 9.1%. In the same interval, the Zacks Computer and Technology sector, to which CSG Systems belongs, has registered an increase of 11.9%. Over the past three months, the company's shares saw an increase of 2.9%, while the S&P 500 declined by 3.1%. In comparison, the sector experienced a decline of 6.8% during this timeframe.

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