Worth Watching Stock for Traders: StarTek, Inc. (NYSE: SRT)

On Tuesday, StarTek, Inc. (NYSE: SRT) changed -4.79% to recent value of $3.38. The stock transacted 90647 shares during most recent day however it has an average volume of 70.12K shares. It spotted trading -62.13% off 52-week high price. On the other end, the stock has been noted 22.91% away from the low price over the last 52-weeks.

Startek, Inc. (SRT) is reporting financial results for the quarter and full year ended December 31, 2019.

Fourth Quarter 2019 Financial Results

Net revenue for the quarter increased 8% to $171.6M contrast to $158.6M in the fourth quarter of 2018.

Gross profit in the fourth quarter was up 10% to $27.6M contrast to $25.1M in the year ago quarter, with gross margin up 10 basis points to 15.9% contrast to 15.8%.

Selling, general and administrative (SG&A) expenses reduced to $19.4M contrast to $21.9M in the year-before quarter. As a percentage of revenue, SG&A improved 250 basis points to 11.3% contrast to 13.8% in the year-before quarter.

Net loss attributable to Startek shareholders for the quarter was $5.3M or $(0.14) per share, contrast to a net loss of $9.7M or $(0.26) per share in the year-before quarter. Net loss in the fourth quarter of 2019 included a $7.1M goodwill impairment primarily related to Argentina and South Africa.

Adjusted net income* in the fourth quarter of 2019 was $5.8M, or $0.15 per share, contrast to an adjusted net loss* of $6.9M or $(0.19) in the fourth quarter of 2018.

Adjusted EBITDA* for the quarter increased 48% to $16.8M contrast to $11.4M in the year-before quarter.

At December 31, 2019, cash and restricted cash increased to $32.6M contrast to $24.6M at December 31, 2018. Total debt at the end of 2019 was reduced to $174.8M contrast to $185.7M at the end of 2018. This resulted in a reduction of net debt to $142.2M contrast to $161.1M.

SRT has a gross margin of 16.90% and an operating margin of 1.50% while its profit margin remained -2.30% for the last 12 months. Its earnings per share (EPS) expected to touch remained 50.60% for this year while earning per share for the next 5-years is expected to reach at 5.00%.  The company has 36.35M of outstanding shares and 11.58M shares were floated in the market. According to the most recent quarter its current ratio was 1.1 that represents company’s ability to meet its current financial obligations. The price moved ahead of -2.90% from the mean of 20 days, -13.99% from mean of 50 days SMA and performed -47.15% from mean of 200 days price. Company’s performance for the week was -11.52%, 5.96% for month and YTD performance remained -57.64%.

 

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