CBIZ Q1 Earnings Beat, Lowers Revenue Guidance

CBIZ (NYSE:CBZ) reported first-quarter earnings with an adjusted EPS of $2.29, exceeding analyst expectations by up to 8.7%, while revenues rose 69.5% year over year to $838 million but still missed market forecasts. The company lowered its full-year revenue guidance to a midpoint of $2.88 billion due to economic and geopolitical challenges affecting its non-recurring service lines, resulting in a 9% drop in its share price. Despite this, CBIZ maintained its full-year adjusted EPS and EBITDA outlook and reported a stronger operating margin of 23.9%. Management emphasized successful integration of acquisitions, strong retention rates, and resilience in its operating model. Some analysts now estimate the company's fair value at $139 per share, implying it could be undervalued by as much as 45%. CBIZ's future prospects will depend on navigating ongoing macroeconomic uncertainty and leveraging digital transformation opportunities.