The 10-second takeaway
For the quarter ended March 31 (Q1), CBIZ missed slightly on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue expanded. Non-GAAP earnings per share contracted. GAAP earnings per share contracted.
Gross margins grew, operating margins increased, net margins shrank.
CBIZ reported revenue of $234.8 million. The three analysts polled by S&P Capital IQ expected to see revenue of $239.3 million on the same basis. GAAP reported sales were 6.3% higher than the prior-year quarter's $220.8 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 $0.34. The three earnings estimates compiled by S&P Capital IQ predicted $0.39 per share. Non-GAAP EPS of $0.34 for Q1 were 11% lower than the prior-year quarter's $0.38 per share. GAAP EPS of $0.37 for Q1 were 2.6% lower than the prior-year quarter's $0.38 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 18.7%, 20 basis points better than the prior-year quarter. Operating margin was 14.5%, 80 basis points better than the prior-year quarter. Net margin was 7.8%, 70 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $205.7 million. On the bottom line, the average EPS estimate is $0.14.
Next year's average estimate for revenue is $821.4 million. The average EPS estimate is $0.65.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 117 members out of 125 rating the stock outperform, and eight members rating it underperform. Among 28 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 28 give CBIZ a green thumbs-up, and give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on CBIZ is outperform, with an average price target of $8.50.
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