Canada's FirstService Q4 revenue slightly beats estimates

Overview

• North American property services firm's Q4 revenue slightly beat analyst expectations

• Adjusted EPS for Q4 beat analyst expectations

• Company's full year revenue grew 5%, driven by recent acquisitions

Outlook

• Company expects organic growth to return as market conditions normalize

Result Drivers

• RESIDENTIAL GROWTH - FirstService Residential's revenue increased 8% in Q4, driven by new contract wins across most markets

• BRANDS DECLINE - FirstService Brands' Q4 revenue fell 3% due to fewer weather events and lower roofing activity

• ACQUISITION IMPACT - Full-year revenue growth of 5% was driven by recent acquisitions

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", no "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 25 times the next 12-month earnings vs. a P/E of 26 three months ago

Press Release: ID:nGNX2tjS5x

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