Property services firm FirstService beats Q3 adjusted EPS estimates, helped by residential growth
Overview
FirstService Q3 revenue grows 4% yr/yr but misses analyst expectations
Adjusted EPS for Q3 beats analyst estimates, growing 8% yr/yr
GAAP operating earnings and diluted EPS decline compared to last year
Outlook
Company expects market challenges to impact fourth-quarter performance
Result Drivers
RESIDENTIAL GROWTH - FirstService Residential revenues grew 8% driven by new contract wins and operational efficiencies
BRANDS DIVISION CHALLENGES - FirstService Brands saw a 1% revenue increase, with a 4% organic decline due to reduced restoration and roofing activity
MACROECONOMIC HEADWINDS - CEO notes weather-related and macroeconomic challenges affected organic growth in the Brands division
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Miss | $1.45 bln | $1.47 bln (5 Analysts) |
Q3 Adjusted EPS | Beat | $1.76 | $1.74 (8 Analysts) |
Q3 EPS | $1.24 |
Property services firm
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the real estate services peer group is "buy"
The stock recently traded at 29 times the next 12-month earnings vs. a P/E of 29 three months ago
Press Release:
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