Enghouse Systems (TSE:ENGH) Posts Disappointing Q3 Results
Market News

Enghouse Systems (TSE:ENGH) Posts Disappointing Q3 Results

Story Highlights

Enghouse Systems failed to deliver impressive third-quarter Fiscal 2022 earnings results. Unfavorable currency movements and sluggish IMG business performance weighed on the company’s top line in the quarter.

Canadian software and services company Enghouse Systems Limited (TSE:ENGH) recently reported disappointing third-quarter Fiscal 2022 earnings results.  The company reported a net income of C$18.1 million, or C$0.33 per share, that compared unfavorably with the year-ago figure of C$21.2 million, or $0.38 per share. The metric also lags analysts’ estimate of C$0.34 per share.

The top-line number of C$102.1 million in third-quarter Fiscal 2022 was down from the previous year’s tally of C$117.6 million. The downside was largely due to unfavorable currency movements. Also, continuous market transition to software as a service (“SaaS”) cloud offerings from on-premise perpetual licensing within the company’s Interactive Management Group (IMG) business impacted revenues in the quarter.

The company recorded C$34.1 million in cash flows from operating activities without changes in working capital, comparing unfavorably with the year-ago figure of C$41.1 million.

Enghouse exited the third quarter of 2022 with cash, cash equivalents, and short-term investments of C$229.5 million and without any external debt. During the reported quarter, the software and services company concluded two acquisitions for C$6.1 million, paid quarterly dividends of C$10.3 million, and repurchased C$9.0 million of shares.

Is Enghouse Stock a Good Buy?

Nonetheless, ENGH stock seems like a good investment option. According to TipRanks, the Street has a Strong Buy consensus rating on the stock, which is based on four Buys and one Hold.

Further, TipRanks data shows that financial bloggers are 100% Bullish on ENGH stock, in comparison to the sector average of 65%.

Final Thoughts

Enghouse has already been having a tough time on the bourses, as the shares of the stock are down 27.2% so far in 2022. Further, ENGH stock’s average stock price of C$31.63, signals a 3.8% decline from the current levels. However, the recently concluded buyouts are expected to boost the company’s contact center offerings and widen its cloud-hosted solutions portfolio.

Read full Disclosure

Go Ad-Free with Our App