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      Sykes Enterprises, Incorporated (SYKE) stock is soaring today: Why is it so? - Stocks Telegraph

      By ST Staff

      Published on

      June 18, 2021

      1:49 PM UTC

      Sykes Enterprises, Incorporated (SYKE) stock is soaring today: Why is it so? - Stocks Telegraph

      Sykes Enterprises, Incorporated (SYKE) stock entered into the acquisition agreement with Sitel Group® today on June 18, 2021, after which the SYKE stock happened to be bullish, and the stock price soared by 30.51% to reach $53.73 a share as of this writing. The SYKE stock was bearish at the previous closing with a 0.02% drop. Let’s discuss more of it.

      What’s Happening?

      Sykes Enterprises, founded in 1977, is the digital transformation service provides along with customer management and multichannel demand generation services. SYKE signed a definitive merger agreement with Sitel Group®pursuant to which all of the outstanding shares of the SYKE’s common stock would be acquired by the Sitel via its subsidiary at a per-share purchase price of $54 which shows the premium of 31.2% on June 17, 2021, the closing price of SYKE stock and represents the total transaction of worth $2.2 billion. The all-cash transaction is expected to be complete in the second half of 2021.

      The Sitel Group® would recruit 155,000 employees in its offices across 39 countries representing over 600 clients with more than 50 languages. Furthermore,  This proposed transaction would help Sitel in increased growth along with strong customer relationships.

      First Quarter 2021 Financial Results:

      In the first week of the previous month on May 04, 2021, SYKE stock announced its first-quarter 2021 financial results according to which SYKE earnings per share increased by 17.39% as compared to the previous year to reach $0.81 per share, surpassed the estimate of 0.78$ per share. The first-quarter revenues increased by $46.7 million to reach $457.9 million as compared to $411.2 million in the same period of the prior year. Operating income showed a 29.3% increase over the year and the operating margin was 6.9% in the recently reported quarter.

      Second Quarter 2021 Financial Guidance:

      • SYKE stock anticipates its revenue for the second quarter of 2021 to be between $443 million to $448 million.
      • Non-GAAP basis effective tax rate would be 23% for the current quarter.
      • Diluted earnings per share is estimated to be in the range of $0.46 to 0.50 and the non-GAAP earnings per share is projected between $0.56 to $0.60.
      • Capital expenses for the SYKE stock in the second quarter would be between $15 million to $20 million.


      The acquisition agreement with Sitel Group® made the Skyes stock bullish today. According to first-quarter 2021 financial results and second-quarter guidance, the SYKE stock is showing significant growth over time. In a nutshell, SYKE can be a good bet for investors in the long run.

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