Sykes' profits boost its stock

TAMPA — Shares of Sykes Enterprises' stock (symbol: SYKE) went up 13% shortly after the company released its first quarter earnings results late Monday. The Tampa firm earned $13.2 million in profits from $310 million in revenues.

Comparing Sykes' latest results to those from a year ago is difficult; it was in the first quarter of last year that Sykes completed its acquisition of ICT Group, substantially increasing the size of its business.

Still, the bottom line cannot be ignored: after losing 18 cents a share in the first quarter of 2010, Sykes posted positive earnings per share of 28 cents this year.

“Higher than anticipated” revenues were a major factor in the company's latest performance, according to a prepared statement. Additionally, a favorable result from a recent audit significantly reduced the company's tax burden.

Sykes also revised its full-year outlook with its latest results. The company now expects to earn roughly $60 million in profits from $1.2 billion in revenues in 2011. Last year, Sykes lost $10.2 million despite $1.16 billion in revenue.

Headquartered in Tampa, Sykes provides outsourced customer contact and management services to clients across the globe.