February 3, 2017 — CDK Global’s stock price hit its all time high yesterday of $65.03 following a strong second quarter fiscal 2017 report. It settled back down to close at just over $64. The stock has been on an upward trajectory the last six months and was trading at just under $54 a share in early November.
Adjusted revenues jumped 5% to 547.8 million while EBITDA margin increased to 32.8% putting the company in on target to meet its objective 35% margins in 2018.
The company also reported it has completed the $1 billion return of capital to shareholders by the end of calendar year 2016. During the quarter, the company executed $20 million of dividend payments, $20 million of open market share repurchases and $330 million of accelerated share repurchases.
Going forward, the company expects to return to shareholders $750 million to $1 billion per calendar year through 2019, through a combination of dividends and share repurchases.
CDK also upgraded its Fiscal 2017 forecast yesterday, which also contributed to the stock jump.
| Fiscal 2017 Forecast | GAAP | Adjusted | ||
| Revenues | up 4% – 5% | up 4% – 5% | ||
| Earnings before income taxes | up 17% – 19% | up 23% – 26% | ||
| Net earnings attributable to CDK | up 21% – 23% | up 26% – 29% | ||
| Diluted net earnings attributable to CDK per share |
up 28% – 32% | up 34% – 37% | ||
| $1.93 – $1.99 | $2.33 – $2.38 |
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