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CBIZ (CBZ) Q3 Earnings call transcript Oct 29, 2024

Daily EarningsWednesday, Oct 30, 2024 3:15 pm ET

1min read

CBZ --

In its latest earnings call, CBIZ, a leading provider of professional services, reported a strong third quarter performance and outlined a positive outlook for the remainder of the year. The call, led by President and CEO Jerry Grisko and CFO Ware Grove, highlighted the company's solid financial health, strategic acquisitions, and optimism for future growth.

Strong Financial Performance and Strategic Acquisition

CBIZ's third quarter results demonstrated a robust financial performance, with total revenue up by 6.9% and adjusted earnings per share up by 27% compared to the same period last year. The company's organic growth was primarily driven by pricing and strong performance in its Financial Services and Benefits and Insurance divisions. The acquisition of Marcum, a significant strategic move, is expected to close in the coming days and will position CBIZ as the largest provider of professional services in its industry.

Client Sentiment and Economic Outlook

CBIZ executives shared that while client sentiment has waned slightly due to uncertainties around the economy and the upcoming national election, many clients continue to express cautious optimism. Concerns around talent access, inflation, and regulatory changes are top of mind, but the general outlook for the economy has improved compared to earlier in the year. CBIZ is well-positioned to serve its clients in this changing environment, with a unmatched breadth of services and depth of expertise.

Financial Health and Future Guidance

With a strong financial performance and a strategic acquisition on the horizon, CBIZ reaffirmed its guidance for the full year 2024, expecting total revenue to increase within a range of 7% to 9% and adjusted earnings per share to increase within a range of 10% to 12% over the previous year. The company also provided details on its capital spending, depreciation, and amortization, and announced a new $2.0 billion committed credit facility to support future growth through strategic acquisitions and share repurchases.

Looking Ahead

As CBIZ prepares for the closing and integration of the Marcum acquisition, the company's focus remains on serving clients, creating value for shareholders, and supporting its team. With a commitment to unlocking opportunities for the future and a strong financial foundation, CBIZ is poised for continued growth and success.

Conclusion

CBIZ's third quarter performance and outlook for the future demonstrate the company's strong financial health and strategic positioning in the professional services industry. With a focus on serving clients, creating value for shareholders, and supporting its team, CBIZ is well-positioned for continued growth and success in the years ahead.

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