The 10-second takeaway
For the quarter ended March 31 (Q1), CBIZ met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share improved.
Gross margins contracted, operating margins dropped, and net margins were steady.
CBIZ logged revenue of $220.8 million. The three analysts polled by S&P Capital IQ expected to see sales of $219.0 million on the same basis. GAAP reported sales were 5.2% higher than the prior-year quarter's $209.9 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 $0.38. The two earnings estimates compiled by S&P Capital IQ predicted $0.37 per share. GAAP EPS of $0.38 for Q1 were 5.6% higher than the prior-year quarter's $0.36 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 18.5%, 80 basis points worse than the prior-year quarter. Operating margin was 13.7%, 100 basis points worse than the prior-year quarter. Net margin was 8.5%, about the same as the prior-year quarter.
Next quarter's average estimate for revenue is $193.3 million. On the bottom line, the average EPS estimate is $0.16.
Next year's average estimate for revenue is $755.9 million. The average EPS estimate is $0.62.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 102 members out of 109 rating the stock outperform, and seven members rating it underperform. Among 21 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 21 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 $8.17.
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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.