WageWorks consensus estimates were 'overly optimistic,' says Stifel
Stifel analyst David Grossman said he "would not read much into" the afterhours pullback in WageWorks shares after the company released its backdated Form 10Q's and updated guidance, stating that he believes consensus estimates were overly optimistic and noting that the stock had run up more than 35% into the call. WageWorks guided to flat 2018 revenue and EBITDA being flat to down 2%, which Grossman said is slightly below previous guidance, but largely in-line with expectations. The company's 2019 revenue guidance of flat to up 3% was in line with consensus, though its view of EBITDA flat to down 15% was below consensus, noted the analyst. Grossman believes the stock is at an attractive entry point now that estimates have been reset and he keeps a Buy rating and $44 price target on WageWorks shares.