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LONDON, UK / ACCESSWIRE / February 12, 2018 / Active-Investors.com has just released a free earnings report on CDK Global, Inc. (NASDAQ: CDK) ("CDK"). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=CDK. The Company posted its financial results for the second quarter fiscal 2018 (Q2 FY18) on January 30, 2018. The Hoffman Estates, Illinois-based Company's adjusted earnings per share grew 30% y-o-y, beating market consensus estimates. Register today and get access to over 1,000 Free Research Reports by joining our site below:

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Active-Investors.com is currently working on the research report for Digital Turbine, Inc. (NASDAQ: APPS), which also belongs to the Technology sector as the Company CDK Global. Do not miss out and become a member today for free to access this upcoming report at:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, CDK Global most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

www.active-investors.com/registration-sg/?symbol=CDK

Earnings Highlights and Summary

In Q2 FY18, CDK reported total revenue of $561.7 million, rising from $547.8 million reported in Q2 FY17. However, total revenue numbers for the reported quarter missed market expectations of $564.9 million.

The provider of technology and marketing services to auto dealers reported earnings attributable to CDK of $104.0 million, or $0.75 per diluted share, in Q2 FY18, up from $82.7 million, or $0.55 per diluted share in Q2 FY17. The Company's adjusted net earnings attributable to CDK increased during the reported quarter to $119.7 million, or $0.87 per diluted share, from $100.1 million, or $0.67 per diluted share, in Q2 FY17. Meanwhile, Wall Street had expected the Company to report adjusted net earnings of $0.70 per diluted share.

Segment Performance

During Q2 FY18, CDK's cost of revenues fell to $290.8 million from $303.2 million in the prior year same quarter. However, selling, general, and administrative (SG&A) expenses increased to $122.2 million in Q2 FY18 from $110.9 million in Q2 FY17. Operating earnings grew to $141.1 million in Q2 FY18 from $131.4 million in the year ago same quarter. The Company's adjusted earnings before income taxes rose to $161.4 million, or 28.7% of revenues, in Q2 FY18 from $150.9 million, or 27.5% of revenues, in the last year's comparable quarter. Furthermore, adjusted EBITDA for the reported quarter came in at $204.1 million, or 36.3% of revenues, rising from $179.7 million, or 32.8% of revenues, in Q2 FY16.

Segment Performance

The Retail Solutions North America segment's revenues increased to $398.1 million in Q2 FY18 from $393.8 million in Q2 FY17. Furthermore, the segment's Q2 FY18 adjusted earnings before income taxes contribution increased to $167.5 million, or 42.1% of the segment's revenues, from $142.3 million, or 36.1% of the segment's revenues, in the last year's comparable quarter.

In Q2 FY18, the Advertising North America segment's revenues stood at $76.8 million versus $78.1 million in Q2 FY17. Moreover, adjusted earnings before income taxes came in at $9.4 million, or 12.2% of the segment's revenues, during Q2 FY18 versus $9.8 million, or 12.5% of the segment's revenues, in the prior year's comparable quarter.

The CDK International segment's revenues were up by 14% to $86.8 million in Q2 FY18 from $75.9 million in the previous year's same quarter. Additionally, the segment's adjusted earnings before income taxes rose to $22.6 million, or 26.0% of the segment's revenues, in Q2 FY18 from $18.3 million, or 24.1% of the segment's revenues in the last year quarter.

Cash Flow & Balance Sheet

For the six months ended on December 31, 2017, CDK's net cash flows provided by operating activities came in at $152.0 million compared to $173.4 million in the year ago comparable period. Free cash flow for the six months ended December 31, 2017, was reported as $105.9 million versus $133.7 million in the prior year's corresponding period.

The Company had cash and cash equivalents balance of $443.6 million as on December 31, 2017, compared to $726.1 million, at the close of books on June 30, 2017. Furthermore, the Company had long-term debt and capital lease obligations amounting to $2.10 billion as on December 31, 2017, versus $2.13 billion as on June 30, 2017.

Dividend and Share Repurchases

In a separate press release on January 16, 2018, CDK's Board of Directors declared a regular quarterly cash dividend of $0.15 per share payable on March 29, 2018, to shareholders of record at the close of business on March 01, 2018.

Guidance

In its outlook for full year FY18, CDK's management expects revenues to increase by 3.0% to 4.0%. The Company raised GAAP earnings per share outlook for FY18 to $2.65 to $2.75 from pervious guidance of $2.37 to $2.47. The Company also raised adjusted earnings per share guidance to $3.23 to $3.28 in FY18 from prior outlook of $2.95 to $3.00.

Stock Performance Snapshot

February 09, 2018 - At Friday's closing bell, CDK Global's stock was marginally up 0.29%, ending the trading session at $66.66.

Volume traded for the day: 1.09 million shares.

Stock performance in the last three-month ? up 4.79%; previous six-month period ? up 9.01%; and past twelve-month period ? up 2.05%

After last Friday's close, CDK Global's market cap was at $9.14 billion.

Price to Earnings (P/E) ratio was at 29.50.

The stock has a dividend yield of 0.90%.

The stock is part of the Technology sector, categorized under the Application Software industry. This sector was up 2.1% at the end of the session.

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