Atento Q1 Profit Misses Estimates

reported weaker-than-expected earnings for the first quarter on Wednesday, but the company's sales exceeded analysts' estimates. The Luxembourg-based company posted quarterly net income of $20.5 million, or $0.28 per share, versus a year-ago loss of $14.6 million, or $0.20 per share. Excluding one-time items, the company's adjusted earnings climbed 284.4 percent in constant currency to $0.20 per share. Its revenue slipped 8.1 percent year-over-year to $515.9 million from $561.3 million. However, analysts were expecting a profit of $0.22 per share on revenue of $506.33 million. Its revenue for the Brazil region slipped to $264.1 million from $288.9 million, while revenue for the Americas region gained to $187.4 million versus $179.1 million. Revenue for the EMEA region dropped to $64.8 million in the first quarter, from $93.3 million in the year-ago quarter. Its adjusted EBITDA in the first quarter declined to $58.3 million, versus $62.8 million in the year-ago period. Free Cash Flow was $(39.0) million, versus $(19.6) million in the year-ago quarter. At March 31, 2015, Atento had $192.1 million in cash, cash equivalents and short-term financial investments, versus $218.4 million in the yea-ago period. "2015 is off to a strong start with measurable progress achieved on multiple fronts. We are pleased with the solid growth in revenue and profitability year-over-year," said Alejandro Reynal, Chief Executive Officer of Atento. "Investments in the business are driving predictable, consistent performance, which have resulted in another quarter of new business signings with new and existing customers across multiple verticals." Atento reaffirmed its outlook for FY15. Atento shares fell 0.23 percent to close at $13.10 yesterday.