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

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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