STARTEK Reports Q2 Earnings for FY2023 on August 10th
August 14, 2023
🌥️Earnings Overview
STARTEK ($NYSE:SRT): On August 10, 2023, STRAKET reported its fiscal second quarter earnings for the period ending June 30, 2023, with total revenue of USD 91.2 million, a 45.6% decrease year-over-year. Net income for the quarter was USD 6.5 million, compared to a loss of 1.9 million in the same quarter of the prior year.
Stock Price
On Thursday, August 10th, STARTEK reported its financial results for the second quarter of FY2023. Despite the positive news, the company’s stock opened at $3.1 and closed at the same price, down 2.2% from its previous closing price of $3.1. This could have been caused by investors’ expectations of better performance due to the introduction of new products and services during the quarter. The company attributes this increase in revenue to strong performance from its customer service and technology-driven solutions offerings. STARTEK also highlighted its successful expansion into new markets such as India and China during the quarter.
This strategy saw the company secure new customers from these regions, which helped it to further diversify its portfolio. Despite the positive news, investors were not enthused by STARTEK’s performance in Q2 FY2023 as evidenced by the decline in stock prices on Thursday. The company is optimistic that its long-term growth strategy will eventually pay off and help to stabilise its stock prices in the future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Startek. STARTEK_Reports_Q2_Earnings_for_FY2023_on_August_10th”>More…
| Total Revenues | Net Income | Net Margin |
| 371.12 | 2.98 | -1.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Startek. STARTEK_Reports_Q2_Earnings_for_FY2023_on_August_10th”>More…
| Operations | Investing | Financing |
| 15.7 | 64.31 | -94.12 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Startek. STARTEK_Reports_Q2_Earnings_for_FY2023_on_August_10th”>More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 404.79 | 209.49 | 4.84 |
Key Ratios Snapshot
Some of the financial key ratios for Startek are shown below. STARTEK_Reports_Q2_Earnings_for_FY2023_on_August_10th”>More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -16.6% | -18.4% | 2.4% |
| FCF Margin | ROE | ROA |
| 0.4% | 2.9% | 1.4% |
Analysis
At GoodWhale, we recently conducted an analysis of STARTEK‘s wellbeing. Our Risk Rating tool determined that STARTEK is a medium risk investment in terms of financial and business aspects. In doing so, two risk warnings were detected in the income statement and balance sheet. To gain further insight into these risks, we encourage our registered users to review the findings of our analysis. Our team at GoodWhale is committed to helping investors make informed decisions, and we hope our research can assist in a successful journey. More…
Peers
The business process outsourcing (BPO) industry is intensely competitive. Companies compete on the basis of price, quality, service, and other factors. The industry is growing rapidly, and new entrants are constantly trying to grab market share. The four largest BPO providers in the world are StarTek Inc, TTEC Holdings Inc, iEnergizer Ltd, and Devoteam SA. These companies are all fighting for a piece of the pie, and the competition is only getting more intense.
– TTEC Holdings Inc ($NASDAQ:TTEC)
TTEC Holdings Inc is a provider of customer experience solutions. The company’s solutions include customer acquisition, customer care, technical support, and fraud prevention. TTEC Holdings Inc has a market cap of 2.06B as of 2022, a Return on Equity of 24.39%. The company has been in business for over 30 years and serves a variety of industries including healthcare, government, technology, financial services, and retail. TTEC Holdings Inc’s solutions are designed to help businesses improve customer satisfaction, loyalty, and retention.
– iEnergizer Ltd ($LSE:IBPO)
Energizer Holdings, Inc. is an American manufacturer of batteries and portable lighting products, headquartered in St. Louis, Missouri. The company has operations in over 40 countries and sells its products in approximately 160 countries. Energizer’s global brands include Energizer®, Eveready®, Rayovac®, and Varta®.
Energizer’s market cap is $874.6 million as of 2022 and its ROE is 165.59%. The company is a leading manufacturer of batteries and portable lighting products. It has operations in over 40 countries and sells its products in approximately 160 countries. Energizer’s global brands include Energizer®, Eveready®, Rayovac®, and Varta®.
– Devoteam SA ($LTS:0E7S)
Founded in 1996, Devoteam is a leading international consulting and managed services provider, with a focus on digital transformation, data & analytics, cloud and cybersecurity. The company employs over 6,000 staff in 25 countries across Europe, the Middle East, Africa and Asia-Pacific.
Devoteam’s market cap as of 2022 is 1.39B, with a Return on Equity of 27.74%. The company has a strong focus on digital transformation, data & analytics, cloud and cybersecurity, which has helped it to become a leading international consulting and managed services provider. Despite employing over 6,000 staff in 25 countries, Devoteam has managed to maintain a strong ROE, which is a testament to its efficient operations.
Summary
Investors in STARTEK should take note of the company’s Q2 FY2023 earnings results. Total revenue for the quarter ending June 30 2023 was USD 91.2 million, a 45.6% decrease from the same quarter of the prior year. This shows that STARTEK is taking steps to improve their financial performance, as evidenced by the increased profits. However, investors should take caution and consider potential risks before investing, as the company’s revenue decline may indicate potential weaknesses in its operations.
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