Goldman Sachs Comments On Convergys 2Q EPS

According to Goldman Sachs, Convergys CVG reported 2Q EPS of $0.26, $0.01 above estimate. Goldman Sachs said that the variance was driven by a combination of higher revenues (+3%), a lower tax rate (80 bp), and a lower share count (2%) partially offset by a lower operating margin (-20 bp). “Our 12-month price target is based on a weighted average model incorporating a sector relative framework, CY11E P/E, and CY11E EV/EBITDA; it implies a CY11 P/E of 12X our EPS estimate of $1.00.” Convergys closed yesterday at $13.18.