As you might know, CBIZ, Inc. (NYSE:CBZ) last week released its latest second-quarter, and things did not turn out so great for shareholders. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at US$420m, statutory earnings missed forecasts by an incredible 43%, coming in at just US$0.39 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Taking into account the latest results, the consensus forecast from CBIZ's three analysts is for revenues of US$1.71b in 2024. This reflects a reasonable 3.3% improvement in revenue compared to the last 12 months. Per-share earnings are expected to increase 5.4% to US$2.48. In the lead-up to this report, the analysts had been modelling revenues of US$1.72b and earnings per share (EPS) of US$2.73 in 2024. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

It might be a surprise to learn that the consensus price target was broadly unchanged at US$80.00, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that CBIZ's revenue growth is expected to slow, with the forecast 6.7% annualised growth rate until the end of 2024 being well below the historical 14% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 6.2% annually. Factoring in the forecast slowdown in growth, it looks like CBIZ is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at US$80.00, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on CBIZ. Long-term earnings power is much more important than next year's profits. We have forecasts for CBIZ going out to 2025, and you can see them free on our platform here.

You still need to take note of risks, for example - CBIZ has 1 warning sign we think you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com