Information Services Stock Gained 9% On Q2 Earnings, Hiked Share Buyback By $25M, Robust Q3 Guidance

Information Services Group Inc III reported second-quarter revenue growth of 23% year-on-year to $70.6 million, beating the analyst consensus of $65.5 million.
The firm's recurring revenues grew by 18%, fueled by the ISG Research business.
Segment: Revenue from Americas increased 28% Y/Y to $40.3 million; Europe rose 13% Y/Y to $23.7 million; Asia Pacific grew 36% Y/Y to $6.5 million.
The adjusted EBITDA grew 32% Y/Y to $9.7 million. The margin expanded 100 bps to 14%.
Adjusted EPS of $0.12 beat the analyst consensus of $0.07.
ISG generated $8.9 million in operating cash flow and held $43.8 million in cash and equivalents.
Dividend & Buybacks: ISG returned $9.8 million to shareholders via share buyback and dividends and reduced debt by $1.1 million.
It hiked the share buyback program by $25 million declared a Q3 dividend of $0.03 per share payable on September 24.
Outlook: ISG sees Q3 revenues between $66 million -$68 million, above the analyst consensus of $63.2 million.
It sees adjusted EBITDA of $8 million - $9 million.
ISG sees market momentum continuing in the second half, reflecting pent-up demand and a structural shift to cloud adoption and digital transformation, Chair and CEO Michael P. Connors stated.
Price action: III shares gained 8.90% at $6.47 on Monday.