CBIZ, Inc. (NYSE:CBZ) Analysts Are Pretty Bullish On The Stock After Recent Results

Shareholders might have noticed that CBIZ, Inc. (NYSE:CBZ) filed its quarterly result this time last week. The early response was not positive, with shares down 2.9% to US$72.76 in the past week. It was a credible result overall, with revenues of US$494m and statutory earnings per share of US$1.53 both in line with analyst estimates, showing that CBIZ is executing in line with expectations. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for CBIZ

Taking into account the latest results, the most recent consensus for CBIZ from three analysts is for revenues of US$1.72b in 2024. If met, it would imply a reasonable 5.4% increase on its revenue over the past 12 months. Per-share earnings are expected to accumulate 9.2% to US$2.73. Before this earnings report, the analysts had been forecasting revenues of US$1.72b and earnings per share (EPS) of US$2.72 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 8.3% to US$78.00. It looks as though they previously had some doubts over whether the business would live up to their expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values CBIZ at US$80.00 per share, while the most bearish prices it at US$76.00. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

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. It's pretty clear that there is an expectation that CBIZ's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 7.3% growth on an annualised basis. This is compared to a historical growth rate of 13% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 5.5% annually. So it's pretty clear that, while CBIZ's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple CBIZ analysts - going out to 2025, and you can see them free on our platform here.

You still need to take note of risks, for example - CBIZ has 1 warning sign we think you should be aware of.

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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.