CBIZ, Inc. (CBZ) Misses Q1 EPS by 3c, Revenues Miss; Provides FY19 Fiscal Outlook

CBIZ, Inc. (NYSE: CBZ) reported Q1 EPS of $0.67, $0.03 worse than the analyst estimate of $0.70. Revenue for the quarter came in at $270 million versus the consensus estimate of $278.78 million.

• REVENUE +1.5%
• SAME-UNIT REVENUE +1.0%
• EPS FROM CONTINUING OPERATIONS +4.7%

Jerry Grisko, President and Chief Executive Officer of CBIZ, said, "Our revenue growth in the first quarter was generally in line with our expectations and an improvement over the exceptionally strong first quarter a year ago. As a reminder, the first quarter of 2018 included very strong results from some of our non-core transactional businesses and revenue from two accounting practices that were divested at year-end. In addition, tax compliance work in the first quarter of 2019, which is normally at a seasonal peak, was negatively impacted by delays in IRS-issued regulations and guidance associated with tax reform. This work has been temporarily deferred and is expected to be completed later in the year."

"Despite the relatively modest growth in the first quarter of 2019 compared with the same period a year ago, we are encouraged by continued strong demand for our services and a healthy level of optimism among many of our clients that the business climate will remain favorable throughout 2019," concluded Grisko.

2019 Outlook

• The Company expects growth in total revenue within a range of 4% to 6%.
• Although a number of factors may impact the tax rate, the Company expects an effective tax rate of approximately 25%.
• The Company expects a weighted average fully diluted share count of approximately 56.0 to 56.5 million shares.
• The Company expects to grow fully diluted earnings per share within a range of 10% to 12% over the $1.09 reported for 2018.

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

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