CBIZ Earnings Preview: What to Expect on October 29th
Investors are eagerly awaiting CBIZ’s upcoming quarterly earnings report, scheduled for Tuesday, October 29th, 2024. The release will offer valuable insights into the company’s financial performance and future prospects. Analysts are predicting an earnings per share (EPS) of $0.76, setting the stage for potential excitement and scrutiny.
Past Performance and Investor Sentiment
CBIZ’s previous earnings performance has been a mixed bag, with some quarters exceeding expectations and others falling short. In the last quarter, the company missed EPS by $0.18, but its share price increased by 5.26% the following day. This highlights the importance of not just the earnings report itself, but also the guidance provided for the next quarter, which can heavily influence stock price movements.
Here’s a quick snapshot of CBIZ’s past performance:
| Quarter | EPS Estimate | EPS Actual | Price Change (%) |
|————-|—————|————|——————|
| Q2 2024 | 0.68 | 0.50 | 5.0 |
| Q1 2024 | 1.50 | 1.54 | -4.0 |
| Q4 2023 | -0.28 | -0.26 | 2.0 |
| Q3 2023 | 0.59 | 0.66 | -1.0 |
The positive performance of CBIZ shares over the past year, with a 28.0% increase, suggests a bullish outlook among long-term investors heading into this earnings release.
Analyst Insights
To understand the market sentiment and expectations surrounding CBIZ, it’s crucial to consider the views of analysts. The consensus rating for CBIZ is a ‘Buy’, based on 1 analyst rating. This bullish stance is further reinforced by an average one-year price target of $86.0, which implies a potential 29.54% upside.
Peer Comparison: Industry Landscape
Comparing CBIZ to its peers helps to paint a clearer picture of its market positioning and relative performance. Here’s a quick overview of analyst ratings and price targets for three prominent industry players: ICF International, Amentum Holdings, and Clarivate:
| Company | Analyst Rating | Average 1-Year Price Target | Potential Upside (%) |
|——————-|—————-|—————————–|———————–|
| ICF International | Outperform | $174.0 | 162.09 |
| Amentum Holdings | Buy | $31.0 | 53.31 |
| Clarivate | Neutral | $6.0 | 90.96 |
Key Takeaways from Peer Analysis
* CBIZ ranks at the top for Gross Profit and Return on Equity among its peers.
* CBIZ’s revenue growth is in the middle compared to its peers.
Unveiling the Story Behind CBIZ
CBIZ provides professional business services through its subsidiaries, grouped into three practice groups: Financial Services, Benefits and Insurance Services, and National Practices. The company serves a diverse range of industries, including Agribusiness, SAAS, Construction, Healthcare, Oil and Gas, Real Estate, Retail, Financial Institutions, and Government. The majority of its revenues stem from the Financial Services segment and are generated in the United States.
Breaking Down CBIZ’s Financial Performance
*
Market Capitalization:
CBIZ’s market capitalization is below industry benchmarks, potentially due to factors such as growth expectations or operational capacity.*
Revenue Growth:
CBIZ achieved a 5.4% revenue growth rate in the past 3 months, ending June 30th, 2024. This reflects a significant increase in top-line earnings. However, this growth rate falls below the average among peers in the Industrials sector.*
Net Margin:
CBIZ’s net margin exceeds industry benchmarks, reaching 4.71%. This indicates efficient cost management and robust financial health.*
Return on Equity (ROE):
CBIZ’s ROE is below industry standards, indicating a potential challenge in effectively utilizing equity capital. At 2.25%, the company may struggle to deliver satisfactory returns to shareholders.*
Return on Assets (ROA):
CBIZ’s ROA is below industry averages, highlighting potential inefficiencies in utilizing assets. With an ROA of 0.91%, the company may face obstacles in achieving optimal financial returns.*
Debt Management:
CBIZ’s debt-to-equity ratio is below industry norms, reflecting a sound financial structure with a ratio of 0.69.Looking Ahead
CBIZ’s upcoming earnings report offers an opportunity for investors to gain valuable insights into the company’s financial performance and future prospects. By analyzing past performance, analyst views, and key financial metrics, investors can better understand the potential implications of the earnings release and its impact on the stock price. Stay tuned for further updates and analysis following the release of CBIZ’s earnings report on October 29th.
