CDK Global (CDK) Tops Q4 EPS by 1c, Beats on Revenues; Offers FY18 EPS Guidance

CDK Global (NASDAQ: CDK) reported Q4 EPS of $0.55, $0.01 better than the analyst estimate of $0.54. Revenue for the quarter came in at $565.4 million versus the consensus estimate of $556.68 million.

Fiscal 2018 guidance

Adjusted guidance is calculated and presented based on management’s revised adjustments for fiscal 2018, and will exclude total stock-based compensation expense and certain legal and regulatory expenses from adjusted earnings before income taxes, as described below under the Non-GAAP Financial Measures section at the end of this press release.

• Fiscal 2018 GAAP diluted net earnings attributable to CDK per share $2.37 - $2.47 and adjusted diluted net earnings attributable to CDK per share $2.90 - $3.00, up from $2.57 in fiscal 2017 on a comparable basis
• Fiscal 2018 GAAP net earnings attributable to CDK margin 14.0% - 15.0% and adjusted EBITDA margin 35.0% - 36.0%

“I am pleased with the results of our fiscal year and benefits delivered by executing our transformation plan. Adjusted EBITDA margin expansion of 550 basis points in fiscal 2017, combined with the 370 basis points of expansion achieved in fiscal 2016, puts us on track to achieve our transformation goals,” said Brian MacDonald, chief executive officer. “By improving our products and processes and focusing on our dealer customers, we are making solid progress. Based on successes to date, we expect to exceed the fiscal 2018 adjusted EBITDA target of 35%.”

GUIDANCE:

CDK Global sees FY2018 EPS of $2.90-$3.00, versus the consensus of $2.93.

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

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