CSG Systems International Inc (CSGS) stock soared 5.04% in intraday trading on Thursday, following the company's impressive Q4 2024 earnings report and positive guidance for 2025.
The company posted record-setting results, with a 7% increase in total revenue to $317 million, driven by 5% year-over-year organic growth. Profitability saw significant gains, with operating income surging 32% and adjusted EBITDA growing 21% to reach a margin of 24.8%.
CSG Systems also announced a 7% hike in its annual dividend to $1.28 per share, marking the 12th consecutive yearly increase. This move underscores the company's commitment to shareholder returns and confidence in its future performance.
Notably, the company provided an upbeat outlook for 2025, forecasting revenue between $1.21 billion and $1.25 billion, non-GAAP EPS of $4.55 to $4.80, and free cash flow ranging from $110 million to $150 million. The positive guidance, coupled with strong Q4 results, prompted several analysts to raise their price targets on CSGS stock.