Canada's Boyd Group Q4 sales rise 2.4%, but miss estimates
Overview
Canada collision repair operator's Q4 sales rose 2.4% yr/yr but missed analyst expectations; adjusted EPS beat consensus
Adjusted EBITDA and adjusted net earnings rose 12.4% and 28.8% yr/yr respectively
Company completed Joe Hudson's acquisition post-quarter, expanding U.S. footprint
Outlook
Company expects to complete Joe Hudson's integration early in Q2 2026
Boyd plans to open eight start-up locations in Q1 2026, with 24 more in development for 2026
Result Drivers
SAME-STORE SALES GROWTH - Company said Q4 marked a second consecutive quarter of positive same-store sales growth, reflecting improved industry conditions and execution of growth strategy
NEW LOCATIONS - Growth from new collision locations, including acquisitions and start-ups, contributed to higher sales
MARGIN IMPROVEMENT - Adjusted EBITDA margin expanded, supported by Project 360 cost and efficiency initiatives
Company press release: ID:nCNWpH4tJa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Sales | Miss | $793.85 mln | $815.55 mln (12 Analysts) |
Q4 Adjusted EPS | Beat | $0.90 | $0.63 (10 Analysts) |
Q4 Adjusted Net Income |
| $22.77 mln |
|
Q4 Net Income |
| $4.79 mln |
|
Q4 Adjusted EBITDA |
| $103.61 mln |
|
Q4 Gross Margin |
| 46.3% |
|
Q4 Basic EPS |
| $0.19 |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the personal services peer group is "buy"
Wall Street's median 12-month price target for Boyd Group Services Inc is C$280.00, about 26.1% above its March 17 closing price of C$222.09
The stock recently traded at 42 times the next 12-month earnings vs. a P/E of 47 three months ago
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
