GP Strategies (GPX) Tops Q2 EPS by 13c, Miss on Revenues

GP Strategies (NYSE: GPX) reported Q2 EPS of $0.34, $0.13 better than the analyst estimate of $0.21. Revenue for the quarter came in at $133.7 million versus the consensus estimate of $134.5 million.

Overview:

• Revenue of $133.7 million for second quarter of 2018 compared to $131.2 million for second quarter of 2017
• Gross profit of $22.6 million for second quarter of 2018 compared to 22.4 million for second quarter of 2017
• Diluted earnings per share of $0.22 for second quarter of 2018 compared to $0.35 per share for second quarter of 2017 (includes restructuring charges of $0.11 per share in the second quarter of 2018)

"In the second quarter of 2018, GP Strategies had higher revenue and gross profit compared to the second quarter of 2017," stated Scott N. Greenberg, Chief Executive Officer of GP Strategies. "We achieved these results with a strong contribution from our engineering and technical services practice which reported revenue growth of 11% or $3.0 million in the second quarter. We are pleased with the traction we are seeing as a result of our investment in business development efforts and the centralization of our sales organization. Our revenue and gross profit increase in the quarter was offset by a decline in UK job skills training services due to the previously discussed funding changes by the UK government for their apprenticeship programs. We are however adapting to these changes and have added new apprenticeship programs to our portfolio and expect that in 2019, our revenues in that business should return to levels more comparable to prior years. In addition, we are excited about the previously announced acquisition of IC Axon which is part of our long term strategy of growing revenues in the life sciences and pharmaceutical industry to become a major vertical of the Company."

For earnings history and earnings-related data on GP Strategies (GPX) click here.

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