Latest news with #JerryGrisko
Yahoo
12-05-2025
- Business
- Yahoo
CBZ Q1 Earnings Call: Revenue Misses Expectations as Integration and Economic Headwinds Shape Outlook
Financial services provider CBIZ (NYSE:CBZ) fell short of the market's revenue expectations in Q1 CY2025, but sales rose 69.5% year on year to $838 million. The company's full-year revenue guidance of $2.88 billion at the midpoint came in 1.6% below analysts' estimates. Its non-GAAP profit of $2.29 per share was 8.7% above analysts' consensus estimates. Is now the time to buy CBZ? Find out in our full research report (it's free). Revenue: $838 million vs analyst estimates of $860.2 million (69.5% year-on-year growth, 2.6% miss) Adjusted EPS: $2.29 vs analyst estimates of $2.11 (8.7% beat) Adjusted EBITDA: $237.6 million vs analyst estimates of $219.5 million (28.4% margin, 8.3% beat) The company dropped its revenue guidance for the full year to $2.88 billion at the midpoint from $2.93 billion, a 1.7% decrease Management reiterated its full-year Adjusted EPS guidance of $3.63 at the midpoint EBITDA guidance for the full year is $453 million at the midpoint, in line with analyst expectations Operating Margin: 23.9%, up from 22.1% in the same quarter last year Free Cash Flow was -$93.23 million compared to -$68.84 million in the same quarter last year Market Capitalization: $3.87 billion CBIZ's first quarter results were shaped by the integration of its recent Marcum acquisition, ongoing macroeconomic uncertainty, and a shifting mix between recurring and project-based services. Management emphasized that essential, recurring services—especially in core accounting, tax, and benefits—remained stable, while more discretionary, project-based advisory services saw softness. CEO Jerry Grisko noted that government healthcare consulting and benefits and insurance businesses were bright spots, helping offset declines in areas affected by lower capital markets activity and client conflicts related to the merger. Looking ahead, CBIZ widened its full-year revenue outlook, citing persistent economic and geopolitical uncertainty and limited visibility into demand for nonrecurring services. Management maintained its adjusted earnings guidance, pointing to flexibility in cost management and the advantages of a variable expense model. CFO Brad Lakhia highlighted the company's ability to adjust compensation and discretionary spending in response to top-line pressures, while also focusing on completing the Marcum integration and executing technology system upgrades that are expected to support future growth. Revenue growth in the first quarter was primarily driven by the Marcum acquisition, with recurring service lines performing as expected and project-based services experiencing pressure from economic and industry-specific factors. Management provided additional context on integration progress and the evolving business environment: Integration Progress on Track: The Marcum acquisition is proceeding according to plan, with collaborative teams and a focus on unifying technology systems. This integration is expected to drive operational improvements and unlock new revenue synergies over time. Recurring Service Stability: Essential compliance services in accounting, tax, and benefits continued to deliver mid-single-digit growth, according to internal analysis. These areas make up roughly 77% of total services and provide resilience against broader market volatility. Project-Based Softness: Discretionary and project-based advisory services—comprising about 23% of revenue—were impacted by lower capital markets activity and reduced deal flow, particularly in private equity and SEC-related audit work. Management attributed this to unpredictable economic and geopolitical conditions. Government Healthcare Consulting Strength: The government healthcare consulting division posted strong growth and expanded its project pipeline, benefiting from increased demand for compliance and cost containment services among state clients. Client Conflicts and Revenue Impact: Some anticipated client losses occurred due to conflicts arising from the merger, particularly in healthcare and capital markets practices. These factors, along with the wind-down of legacy Marcum SPAC-related work, contributed to revenue softness but were largely expected and factored into internal models. Management expects continued uncertainty in demand for nonrecurring services to weigh on near-term revenue, while cost controls and integration initiatives support profitability. Economic Environment Remains Uncertain: Management believes that persistent macroeconomic and geopolitical unpredictability will continue to affect project-based advisory revenue, making forecasting challenging for the remainder of the year. Cost Flexibility Supports Margins: The company's variable compensation structure and discretionary expense controls provide levers to manage earnings even if revenue growth slows. Management indicated this flexibility will be important to maintaining profitability targets. Integration Synergies and Technology Upgrades: Ongoing integration of Marcum and investments in unified technology platforms are expected to drive operational efficiencies and create cross-selling opportunities, which management sees as critical for future growth and margin expansion. Christopher Moore (CJS Securities): Asked which project-based service lines are most vulnerable to falling to the low end of guidance; management cited capital markets and private equity deal-related work as the main areas of risk. Andrew Nicholas (William Blair): Requested detail on how CBIZ will offset top-line softness while maintaining earnings guidance; executives pointed to compensation flexibility and lower discretionary spending as primary levers. Marc Riddick (Sidoti): Inquired about the timing and scope of client losses from conflicts post-acquisition; management confirmed most have already occurred and were within expectations. Andrew Nicholas (William Blair): Asked about capital allocation priorities in light of higher leverage; CFO Brad Lakhia said debt reduction is the top focus, but the company will remain opportunistic with M&A and share repurchases. Marc Riddick (Sidoti): Queried about pricing trends and the risk of rate pressures; CEO Jerry Grisko reported positive pricing trends in Q1 but acknowledged potential downward pressure if the environment worsens. In the quarters ahead, the StockStory team will be monitoring (1) the pace and success of Marcum integration efforts, particularly the rollout of unified technology systems; (2) the stability of core recurring revenue streams amid broader market headwinds; and (3) any recovery in project-based advisory services tied to improved economic clarity and capital markets activity. Progress on cost containment and realization of anticipated integration synergies will also be important indicators for the company's trajectory. CBIZ currently trades at a forward P/E ratio of 19×. In the wake of earnings, is it a buy or sell? Find out in our free research report. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
Yahoo
16-04-2025
- Business
- Yahoo
CBIZ TO ANNOUNCE FIRST-QUARTER 2025 RESULTS ON APRIL 24, 2025
CLEVELAND, April 16, 2025 /PRNewswire/ -- CBIZ, Inc. (NYSE: CBZ) (the "Company"), a leading national professional services advisor, will announce its financial results for the first quarter ended March 31, 2025, before markets open on Thursday, April 24, 2025. A conference call to discuss the Company's financial results will be hosted by CBIZ President and Chief Executive Officer Jerry Grisko and Chief Financial Officer Brad Lakhia at 11 a.m. (ET) on Wednesday, April 24, 2025. The conference call will be webcast live on the investor relations page of the CBIZ website at An archived replay of the webcast will be available following the conclusion of the call. Investors can register at to receive the dial-in number and a unique personal identification number. Participants may register at any time, including up to and after the call start time. About CBIZCBIZ, Inc. (NYSE: CBZ) is a leading professional services advisor to middle-market businesses nationwide. With industry knowledge and expertise in accounting, tax, advisory, benefits, insurance, and technology, CBIZ delivers actionable insights to help clients anticipate what is next and discover new ways to accelerate growth. CBIZ has more than 10,000 team members across more than 160 locations in 22 major markets coast to coast. For more information, visit View original content to download multimedia: SOURCE CBIZ, Inc.
Yahoo
08-04-2025
- Business
- Yahoo
Business Process Outsourcing & Consulting Stocks Q4 Highlights: CBIZ (NYSE:CBZ)
As the craze of earnings season draws to a close, here's a look back at some of the most exciting (and some less so) results from Q4. Today, we are looking at business process outsourcing & consulting stocks, starting with CBIZ (NYSE:CBZ). The sector stands to benefit from ongoing digital transformation, increasing corporate demand for cost efficiencies, and the growing complexity of regulatory and cybersecurity landscapes. For those that invest wisely, AI and automation capabilities could emerge as competitive advantages, enhancing process efficiencies for the companies themselves as well as their clients. On the flip side, AI could be a headwind as well as the technology could lower the barrier to entry in the space and give rise to more self-service solutions. Additional challenges in the years ahead could include wage inflation for highly skilled consultants and potential regulatory scrutiny on outsourcing practices—especially in industries like finance and healthcare where who has access to certain data matters greatly. The 8 business process outsourcing & consulting stocks we track reported a mixed Q4. As a group, revenues along with next quarter's revenue guidance were in line with analysts' consensus estimates. Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 8.5% since the latest earnings results. With over 120 offices across 33 states and a team of more than 6,700 professionals, CBIZ (NYSE:CBZ) provides accounting, tax, benefits, insurance brokerage, and advisory services to help small and mid-sized businesses manage their finances and operations. CBIZ reported revenues of $460.3 million, up 40.5% year on year. This print fell short of analysts' expectations by 11.1%. Overall, it was a disappointing quarter for the company with full-year revenue guidance missing analysts' expectations and a significant miss of analysts' EPS estimates. Jerry Grisko, CBIZ President and Chief Executive Officer, said, "With the successful close of the Marcum transaction last November, we are excited for this new chapter in our Company's history and the opportunities it presents for our collective team members, clients, and CBIZ shareholders. With unmatched breadth of services and depth of expertise, CBIZ has solidified our position as the largest provider of professional services of our kind to middle-market businesses." CBIZ scored the fastest revenue growth but had the weakest performance against analyst estimates and weakest performance against analyst estimates of the whole group. Still, the market seems discontent with the results. The stock is down 11.9% since reporting and currently trades at $71.49. Read our full report on CBIZ here, it's free. Often retained for high-stakes matters with multibillion-dollar implications, CRA International (NASDAQ:CRAI) provides economic, financial, and management consulting services to corporations, law firms, and government agencies for litigation, regulatory proceedings, and business strategy. CRA reported revenues of $176.4 million, up 9.2% year on year, outperforming analysts' expectations by 5.8%. The business had a stunning quarter with an impressive beat of analysts' EPS estimates and full-year revenue guidance beating analysts' expectations. CRA pulled off the biggest analyst estimates beat and highest full-year guidance raise among its peers. The market seems unhappy with the results as the stock is down 11.9% since reporting. It currently trades at $166.15. Is now the time to buy CRA? Access our full analysis of the earnings results here, it's free. With a team of experts deployed across 30+ countries to tackle complex business challenges, FTI Consulting (NYSE:FCN) is a global business advisory firm that helps organizations manage change, mitigate risk, and resolve disputes across financial, legal, operational, and regulatory matters. FTI Consulting reported revenues of $894.9 million, down 3.2% year on year, falling short of analysts' expectations by 2.1%. It was a disappointing quarter as it posted full-year revenue guidance missing analysts' expectations. FTI Consulting delivered the slowest revenue growth in the group. As expected, the stock is down 17% since the results and currently trades at $157.78. Read our full analysis of FTI Consulting's results here. Founded in 2002 during a time of significant regulatory change in corporate America, Huron Consulting Group (NASDAQ:HURN) is a professional services company that helps organizations develop growth strategies, optimize operations, and implement digital transformation solutions. Huron reported revenues of $399.3 million, up 14.1% year on year. This number topped analysts' expectations by 1.7%. Overall, it was a very strong quarter as it also produced a solid beat of analysts' EPS estimates and an impressive beat of analysts' full-year EPS guidance estimates. The stock is up 11.7% since reporting and currently trades at $140.10. Read our full, actionable report on Huron here, it's free. Starting as a virtual assistant service in 2008 before evolving into a global digital services provider, TaskUs (NASDAQ:TASK) provides outsourced digital services including customer experience management, content moderation, and AI data services to innovative technology companies. TaskUs reported revenues of $274.2 million, up 17.1% year on year. This result surpassed analysts' expectations by 2%. Zooming out, it was a slower quarter as it recorded a significant miss of analysts' EPS estimates. The stock is down 22.6% since reporting and currently trades at $12.10. Read our full, actionable report on TaskUs here, it's free. Thanks to the Fed's series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump's presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape. Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. Join Paid Stock Investor Research Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here.
