CDK Global (CDK) Tops Q3 EPS by 1c; Increase Outlook

CDK Global (NASDAQ: CDK) reported Q3 EPS of $0.42, $0.01 better than the analyst estimate of $0.41. Revenue for the quarter came in at $537.7 million versus the consensus estimate of $542.08 million.

“Our fiscal third quarter results reflect solid execution, delivering positive results in our core business operations and progress against our ongoing transformation plan,” said Brian MacDonald, chief executive officer, CDK. “Our focus continues to be on implementing our plan. Ultimately, we believe our efforts will deliver an excellent customer experience and allow us to realize significant earnings growth and margin expansion.”

Fiscal 2016 Forecast

Despite the items below and based on the results for the first nine months of the fiscal year, we have increased our earnings growth and margin forecasts for the full year. Fiscal 2016 results have been adjusted to exclude costs related to the business transformation plan and a net gain associated with an indemnification receivable in the second quarter of fiscal 2016. Fiscal 2015 results were adjusted for certain items for comparability to fiscal 2016 as shown in our fiscal 2015 year-end earnings press release and presented at the end of this release. On this adjusted basis, the forecast is as follows:

• Revenues – we anticipate 4% to 5% growth from $2,017.3 million in fiscal 2015
• Earnings before income taxes – we anticipate 26% to 27% growth from $333.3 million in fiscal 2015
• Pretax margin – we anticipate approximately 350 basis points of expansion from 16.5% in fiscal 2015
• EBITDA margin – we anticipate approximately 350 basis points of expansion from 22.9% in fiscal 2015
• Net earnings attributable to CDK – we anticipate 27% to 28% growth from $210.5 million in fiscal 2015
• Diluted net earnings attributable to CDK per share – we anticipate approximately 30% growth from $1.30 in fiscal 2015

For earnings history and earnings-related data on CDK Global (CDK) click here.

You May Also Be Interested In

• Safe & Green (SGBX) Provides Update on Audit and Planned 10-K Filing
• Baozun Inc. (BZUN) Chairman Issues 2023 Letter to Shareholders
• Super Micro Computer (SMCI) Falls 6%