CBIZ, Inc. (CBZ) Tops Q1 EPS by 6c, Beats on Revenues; Offers FY18 EPS Mid-Point Outlook Above Consensus

CBIZ, Inc. (NYSE: CBZ) reported Q1 EPS of $0.64, $0.06 better than the analyst estimate of $0.58. Revenue for the quarter came in at $266.1 million versus the consensus estimate of $254.43 million.

FIRST-QUARTER HIGHLIGHTS:

• REVENUE +10.2%
• SAME-UNIT REVENUE +5.8%
• EPS FROM CONTINUING OPERATIONS +42.2%

For the 2018 first quarter, CBIZ reported revenue of $266.1 million, an increase of $24.6 million, or 10.2%, over the $241.5 million reported in 2017. Same-unit revenue increased by $14.0 million, or 5.8%, for the quarter, compared with the same period a year ago. Newly acquired operations contributed $10.6 million, or 4.4%, to revenue growth in the quarter. CBIZ reported income from continuing operations of $35.8 million, or $0.64 per diluted share, in the 2018 first quarter, compared with income of $25.0 million, or $0.45 per diluted share, for the same period a year ago. Adjusted EBITDA for the first quarter was $55.9 million, compared with $48.3 million for the first quarter of 2017.

Jerry Grisko, President and Chief Executive Officer of CBIZ, said, "We are pleased to record strong first quarter revenue growth as well as improved margins. Our results were bolstered by strong demand for our core services, a high level of optimism among our clients regarding the general business climate, new consulting and planning engagements related to the Tax Cuts and Jobs Act of 2017, and improved results from a number of our project-oriented businesses. We also continue to benefit from the acquisitions that we made in recent years, and we are pleased to have completed two additional acquisitions so far this year."

2018 Outlook

• The Company expects growth in total revenue within a range of 5% to 8%.
• The Company expects to report an effective tax rate of approximately 25% as a result of the Tax Reform Act, although a number of factors may impact the tax rate. The Company expects a weighted average fully diluted share count of approximately 56.0 million shares for full-year 2018.
• The Company expects to achieve growth in fully diluted earnings per share within a range of 13% to 17% over the $0.92 reported for 2017. Adjusted for the one-time 2017 impact of the Tax Reform Act, the Company expects to achieve growth within a range of 20% to 24% over the adjusted $0.87 reported for 2017.

GUIDANCE:

CBIZ, Inc. sees FY2018 EPS of $1.04-$1.08, versus the consensus of $1.05.

For earnings history and earnings-related data on CBIZ, Inc. (CBZ) click here.

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