Financial services provider CBIZ (NYSE: CBZ) will be announcing earnings results this Wednesday after market hours. Here’s what to look for.
CBIZ missed analysts’ revenue expectations by 2.6% last quarter, reporting revenues of $838 million, up 69.5% year on year. It was a slower quarter for the company, with full-year revenue guidance missing analysts’ expectations.
Is CBIZ a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting CBIZ’s revenue to grow 67% year on year to $701.4 million, improving from the 5.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.84 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. CBIZ has missed Wall Street’s revenue estimates four times over the last two years.
Looking at CBIZ’s peers in the professional services segment, some have already reported their Q2 results, giving us a hint as to what we can expect. FTI Consulting posted flat year-on-year revenue, beating analysts’ expectations by 3.4%, and Concentrix reported revenues up 1.5%, topping estimates by 1.2%. FTI Consulting traded up 3.9% following the results while Concentrix was down 6.3%.
Read our full analysis of FTI Consulting’s results here and Concentrix’s results here.
There has been positive sentiment among investors in the professional services segment, with share prices up 2.3% on average over the last month. CBIZ is up 7% during the same time and is heading into earnings with an average analyst price target of $95 (compared to the current share price of $76.75).
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