CBIZ Whiffs on Revenues

CBIZ (NYSE: CBZ  ) reported earnings on July 29. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), CBIZ whiffed on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue dropped. Non-GAAP earnings per share dropped. GAAP earnings per share grew significantly.

Margins grew across the board.

Revenue details
CBIZ chalked up revenue of $172.5 million. The two analysts polled by S&P Capital IQ hoped for revenue of $211.0 million on the same basis. GAAP reported sales were 8.5% lower than the prior-year quarter's $188.6 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.11. The two earnings estimates compiled by S&P Capital IQ averaged $0.15 per share. Non-GAAP EPS of $0.11 for Q2 were 8.3% lower than the prior-year quarter's $0.12 per share. GAAP EPS of $0.18 for Q2 were 50% higher than the prior-year quarter's $0.12 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 12.1%, 50 basis points better than the prior-year quarter. Operating margin was 7.7%, 10 basis points better than the prior-year quarter. Net margin was 5.3%, 220 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $196.0 million. On the bottom line, the average EPS estimate is $0.12.

Next year's average estimate for revenue is $821.3 million. The average EPS estimate is $0.65.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 119 members out of 127 rating the stock outperform, and eight members rating it underperform. Among 34 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 34 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 buy, with an average price target of $8.50.

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