Information Services Group (III) – In a More Stable Environment


Wednesday, August 07, 2024

ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 700 clients, including more than 75 of the world’s top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including automation, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,300 digital-ready professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data. For additional information, visit www.ISG-One.com

Joe Gomes, CFA, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Improved Metrics. Although performance decreased from the prior year, the Company improved sequentially. Stable revenue and lower costs led to higher a gross margin of 39.5% compared to 36.1% in the first quarter. The increased margin led to profitability in the quarter compared to a net loss last quarter. These improvements show ISG’s efficiency in the continued down environment while the Company prepares for clients to resuming spending, in our view.

Geographies. Although the regions are down from the prior year, most of ISG’s geographies are showing stability. Both the Americas and Europe are experiencing stability in their pipelines even as the uncertain macro environment continues. We would note management believes spending will resume more quickly in the Americas segment, primarily the U.S., with a return to spending as soon as the fourth quarter.


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*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

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