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Cynergistek (CTEK) to Post Q4 Earnings: What's in Store?

Zacks Equity Research

Cynergistek, Inc. CTEK is slated to release fourth-quarter 2018 results on Mar 27, after the bell. The stock has gained 1.3% in the past three months, underperforming the 15.1% rise of the industry it belongs to.

 

Let’s see how things are shaping up for the announcement.

Top Line to Remain in Good Shape

The Zacks Consensus Estimate for total revenues in the to-be-reported quarter is pegged at $20 million, indicating growth of 5.3% from the year-ago quarter’s figure. The expected upside is likely to be driven by strength in security-related managed services, security-related consulting and professional services and equipment, hardware and software resales. In the third quarter of 2018, revenues increased 6% year over year to $19.2 million.

Bottom Line Likely to Decline Y/Y

The Zacks Consensus Estimate for earnings in the to-be-reported quarter is pegged at $16 cents, which reflects year-over-year decline of 20%. Increase in equipment revenues, that carries lower margins, is likely to weigh on the bottom line. In the third quarter of 2018, Non-GAAP adjusted earnings fell 8% year over year to 22 cents per share.

Zacks Rank and Key Picks

Currently, Cynergistek has a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader Zacks Business Services sector are Interpublic IPG, Omnicom OMC and Paychex PAYX, each carrying a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Long-term expected EPS (three to five years) growth rate for Interpublic, Omnicom and Paychex is 2.7%, 4.7% and 8.8%, respectively.

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Interpublic Group of Companies, Inc. (The) (IPG) : Free Stock Analysis Report
 
Omnicom Group Inc. (OMC) : Free Stock Analysis Report
 
Paychex, Inc. (PAYX) : Free Stock Analysis Report
 
Cynergistek, Inc. (CTEK) : Free Stock Analysis Report
 
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