The 10-second takeaway
For the quarter ended Dec. 31 (Q4), FirstService beat expectations on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share shrank significantly.
Gross margins increased, operating margins increased, net margins shrank.
FirstService booked revenue of $632.5 million. The eight analysts polled by S&P Capital IQ predicted sales of $615.0 million on the same basis. GAAP reported sales were 6.3% higher than the prior-year quarter's $594.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.68. The nine earnings estimates compiled by S&P Capital IQ anticipated $0.78 per share. GAAP EPS of $0.14 for Q4 were 93% lower than the prior-year quarter's $2.10 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 35.1%, 210 basis points better than the prior-year quarter. Operating margin was 5.3%, 30 basis points better than the prior-year quarter. Net margin was 1.0%, 1,040 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $513.3 million. On the bottom line, the average EPS estimate is $0.09.
Next year's average estimate for revenue is $2.42 billion. The average EPS estimate is $2.06.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on FirstService is outperform, with an average price target of $33.71.
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