Overview

* ISG Q2 revenue up 7% yr/yr, beating analyst expectations, per LSEG data

* Adjusted EBITDA rises 17%, beating estimates, per LSEG data

* Co to acquire Martino & Partners, expanding presence in Italy, deal to close in September

Outlook

* Company expects Q3 revenue between $60.5 mln and $61.5 mln

* ISG targets Q3 adjusted EBITDA of $7.5 mln to $8.5 mln

Result Drivers

* AMERICAS GROWTH - Revenue in the Americas rose 16% yr/yr, excluding divested automation unit, driving overall revenue increase

* CASH FLOW - Generated $12 mln in cash from operations, significantly up from $2.2 mln prior year, marking one of the best quarters for cash generation

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Beat $62 mln $60 mln

Revenue (5

Analysts

)

Q2 EPS $0.04

Q2 Beat $4.10 $3.52

Adjusted mln mln (4

Net Analysts

Income )

Q2 Beat $8.30 $7.25

Adjusted mln mln (5

EBITDA Analysts

)

Q2 13.5%

Adjusted

EBITDA

Margin

Q2 $4.70

Operatin mln

g Income

Analyst Coverage

* The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the it services & consulting peer group is "buy."

* Wall Street's median 12-month price target for Information Services Group Inc ( III ) is $5.75, about 26.3% above its August 5 closing price of $4.24

* The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 13 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)