CDI Corp. (NYSE:CDI) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 2.42%.
CDI Corp. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 32% to $0.17 in the quarter versus EPS of $0.25 in the year-earlier quarter.
Revenue: Decreased 4.01% to $263.4 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: CDI Corp. reported adjusted EPS income of $0.17 per share. By that measure, the company beat the mean analyst estimate of $0.16. It missed the average revenue estimate of $264.25 million.
Quoting Management: “While we are making good progress with the execution of our strategy to grow our focus verticals in both engineering and program staffing, our second quarter results were below last year’s levels, as it is taking longer than expected to convert wins into revenues,” said CDI President and CEO Paulett Eberhart. “We anticipate our new wins to convert into revenue at a progressively faster pace through the third and fourth quarters. In addition, we saw declines in non-program staffing and MRI revenue as well as lower spending by our largest client and government accounts during the second quarter.”
Key Stats (on next page)…
Revenue decreased 2.25% from $269.47 million in the previous quarter. EPS increased 30.77% from $0.13 in the previous quarter.
Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.28 to a profit $0.22. For the current year, the average estimate has moved down from a profit of $1.04 to a profit of $0.73 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)