Oppenheimer Comments On TeleTech Holdings Following Earnings; Raises PT

TTEC reported slightly higher than expected $280M in revenue with EPS of $0.28 a penny shy of expectations on weak margins. TTEC's initial FY11 outlook calls for 5-6% revenue growth and slightly better than expected margin performance of 8.5-9.5%. Oppenheimer believes stable volumes from existing clients, coupled with a healthy and growing pipeline of new opportunities and strong uptake of tech-based solutions bode well for resumed top-line growth in FY11. Given improving growth trends and better than expected guidance, Oppenheimer is raising estimates and PT from $19 to $23 and maintain its Outperform on stabilizing fundamentals, expected return to top-line growth in FY11 and healthy balance sheet/FCF generation. Management's FY11 outlook for 5-6% growth surprised to the upside especially when one-time census revenue of $80M in FY10 is taken into account. Margin outlook for 8.5-9.5% was also slightly better than Oppenheimer's 8.2% forecast. It is also raising its FY11 revenue/EPS to $1.15B and $1.25 from $1.11B/$1.22. Oppenheimer introduces FY12 estimates of $1.24B and $1.44. TTEC closed Wednesday at $20.45