Information Services Group (III) Continues To Hire To Meet Future Demand

Information Services Group (III) reported solid quarterly results last night. Indeed, led by strong demand for its digital transformation, cost optimization, research, workplace and governance solutions from clients in the Americas and Europe, Q4 revenues rose 6.6% year-over-year to $74.2 million and would have been up by an even greater 11.2% if not for the severe currency headwinds the company has been facing. But even with the latter shaving $3.2 million off the top line, the revenues for the period easily exceeded both III’s guided range of $70-72 million and the $71.2 million consensus view. Combined with a more profitable mix of products and services and the efficiencies the company derives from its ISG NEXT
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operating model, this drove a 30.0% increase in adjusted earnings to 13 cents per share, which was 2 cents better than expected, as well as a 164% surge in operating cash flows from $2.5 million to $6.6 million.