The 10-second takeaway
For the quarter ended Dec. 31 (Q4), CBIZ missed slightly on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped slightly and GAAP loss per share dropped.
Gross margins contracted, operating margins dropped, net margins improved.
CBIZ recorded revenue of $162.9 million. The three analysts polled by S&P Capital IQ anticipated revenue of $165.9 million on the same basis. GAAP reported sales were 1.2% lower than the prior-year quarter's $164.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$0.02. The three earnings estimates compiled by S&P Capital IQ predicted $0.00 per share. GAAP EPS were -$0.02 for Q4 versus -$0.04 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 2.0%, 340 basis points worse than the prior-year quarter. Operating margin was -2.5%, 360 basis points worse than the prior-year quarter. Net margin was -0.7%, 30 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $216.7 million. On the bottom line, the average EPS estimate is $0.37.
Next year's average estimate for revenue is $758.9 million. The average EPS estimate is $0.62.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 100 members out of 107 rating the stock outperform, and seven members rating it underperform. Among 28 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 28 give CBIZ a green thumbs-up.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on CBIZ is outperform, with an average price target of $9.00.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.