CDI Earnings: Everything You Must Know Now

CDI Corp. (NYSE:CDI) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.

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CDI Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 35% to $0.13 in the quarter versus EPS of $0.20 in the year-earlier quarter.

Revenue: Decreased 3.98% to $269.46 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: CDI Corp. reported adjusted EPS income of $0.13 per share. By that measure, the company missed the mean analyst estimate of $0.23. It missed the average revenue estimate of $271.75 million.

Quoting Management: “During the first quarter, gross profit margin was below last year as revenue in the higher-margin government business within GETS declined versus the year-ago quarter,” said CDI President and CEO Paulett Eberhart. “In addition, we saw a shift to lower margin business within PSS, as well as continued weakness in higher-margin MRI permanent placement and contract business. We were pleased to sustain our competitive cost structure during the first quarter, as reflected by lower operating and administrative expenses as a percentage of revenue. Also encouraging are recent wins and increased bid activity in engineering and staffing. We remain confident in our strategy of focusing on select verticals, higher-margin engineering projects and client service excellence.”

Key Stats (on next page)…

Revenue decreased 0.4% from $270.54 million in the previous quarter. EPS decreased 48% from $0.25 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.25 and has not changed. For the current year, the average estimate has moved down from a profit of $1.05 to a profit of $1.04 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)