CBIZ, Inc. Just Missed EPS By 43%: Here's What Analysts Think Will Happen Next

It's shaping up to be a tough period for CBIZ, Inc. (NYSE:CBZ), which a week ago released some disappointing second-quarter results that could have a notable impact on how the market views the stock. Results showed a clear earnings miss, with US$420m revenue coming in 2.4% lower than what the analystsexpected. Statutory earnings per share (EPS) of US$0.39 missed the mark badly, arriving some 43% below what was expected. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for CBIZ

Following the latest results, CBIZ's three analysts are now forecasting revenues of US$1.71b in 2024. This would be a satisfactory 3.3% improvement in revenue compared to the last 12 months. Per-share earnings are expected to accumulate 5.4% to US$2.48. Before this earnings report, the analysts had been forecasting revenues of US$1.72b and earnings per share (EPS) of US$2.73 in 2024. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

It might be a surprise to learn that the consensus price target was broadly unchanged at US$80.00, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that CBIZ's revenue growth is expected to slow, with the forecast 6.7% annualised growth rate until the end of 2024 being well below the historical 14% p.a. growth over the last five years. Compare this to the 137 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 6.2% per year. Factoring in the forecast slowdown in growth, it looks like CBIZ is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at US$80.00, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for CBIZ going out to 2025, and you can see them free on our platform here..

Plus, you should also learn about the 1 warning sign we've spotted with CBIZ .

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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