CDK Global (CDK) Tops Q2 EPS by 17c, Miss on Revenues; Boosts FY18 EPS Guidance Above Consensus

CDK Global (NASDAQ: CDK) reported Q2 EPS of $0.87, $0.17 better than the analyst estimate of $0.70. Revenue for the quarter came in at $561.7 million versus the consensus estimate of $564.93 million.

• Second quarter revenues rise 3%, 1% on a constant currency basis
• GAAP net earnings attributable to CDK margin expands 340 bps to 18.5%, adjusted EBITDA margin expands 350 bps to 36.3%
• GAAP earnings per share rise 36% to $0.75, adjusted earnings per share rise 30% to $0.87
• Raises full year earnings per share guidance

We maintain our revenue guidance for the fiscal year. We have raised our earnings per share outlook for the fiscal year to $2.65-$2.75 from $2.37-$2.47 on a GAAP basis. We have raised our adjusted earnings per share outlookfor the fiscal year to $3.23-$3.28 from $2.95-$3.00, including approximately $0.23 associated with the ongoing benefits of the Tax Cuts and Jobs Act (the “Tax Reform Act”). We currently expect EBITDA margin to be at the high end of the provided guidance range in fiscal 2018.

GUIDANCE:

CDK Global sees FY2018 EPS of $3.23-$3.28, versus the consensus of $3.01.

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

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