CDK Global Q2 Profit Declines; Lifts 2015 Earnings Outlook - Quick Facts

(RTTNews) - CDK Global Inc. (CDK) reported second-quarter net earnings of $42.5 million or $0.26 per share, down from $52.2 million or $0.33 per share in the year-ago period.

However, adjusted earnings for the quarter were $0.37 per share, compared to $0.27 per share in the previous-year quarter. On average, analysts polled by Thomson Reuters expected the company to earn $0.32 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter grew 7 percent to $521.2 million from $487.3 million in the year-ago quarter. Analysts had a consensus revenue estimate of $520.67 million for the quarter.

For fiscal 2015, CDK Global now forecasts adjusted net earnings to increase 9 percent to 10 percent from adjusted earnings of $205.9 million in the previous year, adjusted earnings per share to grow 8 percent to 9 percent from adjusted earnings per share of $1.28 in the prior year, and revenues to increase 6 percent to 7 percent from $1.97 billion last year.

Earlier, the company forecast fiscal 2015 adjusted net earnings at the high end of its 6 percent to 8 percent growth range from adjusted earnings of $206.8 million in fiscal 2014, adjusted earnings per share at the high end of its 6 percent to 8 percent growth range from $1.29 in fiscal 2014, and revenues to rise 7 percent to 8 percent from $1.97 billion in fiscal 2014.

Street expects the company to earn $1.40 per share for the year on revenues of $2.11 billion.

The company said it lowered its full-year revenue outlook as a result of expected pressure from unfavorable foreign exchange rates.