CBIZ Q2 2024 Earnings Report
Key Takeaways
CBIZ's second-quarter revenue increased by 5.4% to $420.0 million, while net income decreased by 26.3% to $19.8 million. The company experienced headwinds from the departure of a small group of producers and client delays in investment decisions. CBIZ also announced an agreement to acquire Marcum LLP for approximately $2.3 billion, expected to close in the fourth quarter.
Total revenue increased by 5.4%, with same-unit revenue up 2.8%.
GAAP EPS decreased by 26.4%, and adjusted EPS decreased by 9.1%, including Marcum acquisition-related expenses of $6.7 million.
Net income decreased by 26.3%, with adjusted EBITDA down 6.9%.
Announced an agreement to acquire Marcum LLP for approximately $2.3 billion, expected to close in the fourth quarter.
CBIZ
CBIZ
CBIZ Revenue by Segment
Forward Guidance
CBIZ expects total revenue to grow within a range of 7% to 9% and adjusted fully diluted earnings per share to grow within a range of 10% to 12%. This guidance excludes the impact of the Marcum acquisition.
Positive Outlook
- Total revenue is expected to grow between 7% and 9%.
- Effective tax rate of approximately 28%.
- Weighted average fully diluted share count of approximately 50.0 to 50.5 million shares.
- GAAP fully diluted earnings per share to grow within a range of 6% to 8%, to $2.53 to $2.58 per share.
- Adjusted fully diluted earnings per share to grow within a range of 10% to 12%, to $2.64 to $2.69 per share.
Challenges Ahead
- Projected $0.06 per share full year impact of the loss of Property and Casualty business.
- Guidance excludes the impact of the Marcum acquisition.
- Uncertainty in the market is amplified in an election year given concerns around regulations and interest rates.
- Clients delaying investment decisions and tightening discretionary spending.
- Departure of a small group of producers from Property and Casualty Insurance business.
Revenue & Expenses
Visualization of income flow from segment revenue to net income