CBIZ shares fall as Q3 revenue misses estimates despite earnings beat

NEW YORK - CBIZ, Inc. (NYSE:CBZ ) reported mixed third quarter results on Tuesday, with earnings surpassing expectations but revenue falling short of analyst estimates. The company's shares dropped 1.59% following the release.

The financial services provider posted adjusted earnings per share of $0.84 for Q3, beating the consensus estimate of $0.76 by $0.08. However, revenue came in at $438.9 million, missing analysts' projections of $442.4 million.

CBIZ's Q3 revenue grew 6.9% YoY, with same-unit revenue increasing 5.1%. The company reported net income of $35.1 million, up 4.2% from the same period last year.

"Adjusted earnings per share were up by over 27% and we are very pleased to report strong third quarter results," said Jerry Grisko, CBIZ President and Chief Executive Officer.

Despite the revenue miss, CBIZ reaffirmed its full-year 2024 guidance. The company expects adjusted earnings per share between $2.64 and $2.69, in line with the consensus estimate of $2.64. CBIZ also forecasts total revenue growth of 7% to 9% over the prior year.

Grisko expressed optimism about the pending acquisition of Marcum LLP, stating, "With combined annual revenues of approximately $2.8 billion, over 10,000 team members, offices from coast to coast, and our wide-range of high-value services including accounting, tax, advisory, benefits, insurance, and technology, CBIZ will become the largest provider of professional services of our kind to the middle market."

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Source: Investing.com