CBIZ Earnings: Here’s Why Shares are Up Now
CBIZ, Inc. (NYSE:CBZ) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 1.49%.
CBIZ, Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 5.71% to $0.37 in the quarter versus EPS of $0.35 in the year-earlier quarter.
Revenue: Rose 6.33% to $234.8 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: CBIZ, Inc. reported adjusted EPS income of $0.37 per share. By that measure, the company missed the mean analyst estimate of $0.39. It missed the average revenue estimate of $237.13 million.
Quoting Management: Steven L. Gerard, CBIZ Chairman and CEO stated, “The acquisition activity that occurred in 2012 was consistent with our growth strategy and is having a very positive impact in 2013 as the results are in line with expectations. Organic revenue growth was slower than expected in the first quarter primarily due to weather-related closures we experienced in several major offices in the Midwest and Northeast regions combined with a late start to tax-related work within our Financial Services group. Some of this work was deferred until April and we expect to recover the balance of this revenue throughout the remainder of the year. We continue to expect improving trends in organic revenue growth this year with total revenue growth in a range of 7% to 9% compared with 2012. In addition, we continue to expect a 12% to 15% increase in earnings per diluted share compared with the normalized $0.58 reported for 2012,” concluded Mr. Gerard.
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