Looking back on data & business process services stocks’ Q2 earnings, we examine this quarter’s best and worst performers, including CSG (NASDAQ:CSGS) and its peers.
A combination of increasing reliance on data and analytics across various industries and the desire for cost efficiency through outsourcing could mean that companies in this space gain. As functions such as payroll, HR, and credit risk assessment rely on more digitization, key players in the data & business process services industry could be increased demand. On the other hand, the sector faces headwinds from growing regulatory scrutiny on data privacy and security, with laws like GDPR and evolving U.S. regulations potentially limiting data collection and monetization strategies. Additionally, rising cyber threats pose risks to firms handling sensitive personal and financial information, creating outsized headline risk when things go wrong in this area.
The 9 data & business process services stocks we track reported a mixed Q2. As a group, revenues beat analysts’ consensus estimates by 1.6% while next quarter’s revenue guidance was 0.6% below.
In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.
Best Q2: CSG (NASDAQ:CSGS)
Powering billions of critical customer interactions annually, CSG Systems (NASDAQ:CSGS) provides cloud-based software platforms that help companies manage customer interactions, process payments, and monetize their services.
CSG reported revenues of $297.1 million, up 2.3% year on year. This print exceeded analysts’ expectations by 1.9%. Overall, it was a very strong quarter for the company with full-year revenue guidance exceeding analysts’ expectations and a beat of analysts’ EPS estimates.
“Team CSG’s very good business results through the first half of the year enabled us to raise our profitability targets for the second consecutive quarter and up our full year non-GAAP adjusted free cash flow target. Our 19.5% non‑GAAP operating margin underscores Team CSG’s continued success in relentlessly unlocking efficiency gains across every aspect of our business,” said Brian Shepherd, President and Chief Executive Officer of CSG.
CSG scored the highest full-year guidance raise but had the slowest revenue growth of the whole group. Unsurprisingly, the stock is up 2.5% since reporting and currently trades at $64.40.
Is now the time to buy CSG? Access our full analysis of the earnings results here, it’s free.
EXL (NASDAQ:EXLS)
Originally founded as an outsourcing company in 1999 before evolving into a technology-focused enterprise, EXL (NASDAQ:EXLS) provides data analytics and AI-powered digital operations solutions that help businesses transform their operations and make better decisions.
EXL reported revenues of $514.5 million, up 14.7% year on year, outperforming analysts’ expectations by 1.6%. The business had a strong quarter with a beat of analysts’ EPS estimates and full-year EPS guidance in line with analysts’ estimates.
The market seems content with the results as the stock is up 3.1% since reporting. It currently trades at $43.50.
Is now the time to buy EXL? Access our full analysis of the earnings results here, it’s free.
Broadridge (NYSE:BR)
Processing over $10 trillion in equity and fixed income trades daily and managing proxy voting for over 800 million equity positions, Broadridge Financial Solutions (NYSE:BR) provides technology-driven solutions that power investing, governance, and communications for banks, broker-dealers, asset managers, and public companies.
Broadridge reported revenues of $2.07 billion, up 6.2% year on year, in line with analysts’ expectations. It was a slower quarter as it posted revenue guidance for next quarter meeting analysts’ expectations.
Interestingly, the stock is up 3.3% since the results and currently trades at $256.60.
Read our full analysis of Broadridge’s results here.
Verisk (NASDAQ:VRSK)
Processing over 2.8 billion insurance transaction records annually through one of the world's largest private databases, Verisk Analytics (NASDAQ:VRSK) provides data, analytics, and technology solutions that help insurance companies assess risk, detect fraud, and make better business decisions.
Verisk reported revenues of $772.6 million, up 7.8% year on year. This result met analysts’ expectations. More broadly, it was a mixed quarter as it also recorded a beat of analysts’ EPS estimates but a miss of analysts’ full-year EPS guidance estimates.
Verisk had the weakest performance against analyst estimates among its peers. The stock is down 8.3% since reporting and currently trades at $269.72.
Read our full, actionable report on Verisk here, it’s free.
TransUnion (NYSE:TRU)
One of the three major credit bureaus in the United States alongside Equifax and Experian, TransUnion (NYSE:TRU) is a global information and insights company that provides credit reports, fraud prevention tools, and data analytics to help businesses make decisions and consumers manage their financial health.
TransUnion reported revenues of $1.14 billion, up 9.5% year on year. This number beat analysts’ expectations by 3.7%. Taking a step back, it was a mixed quarter as it also logged a beat of analysts’ EPS estimates but full-year EPS guidance in line with analysts’ estimates.
TransUnion pulled off the biggest analyst estimates beat among its peers. The stock is down 6.4% since reporting and currently trades at $88.40.
Read our full, actionable report on TransUnion here, it’s free.
Market Update
Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.
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