FirstService Whiffs on Earnings (FSRV)

FirstService Whiffs on Earnings

FirstService (Nasdaq: FSRV ) reported earnings on Feb. 13. Here are the numbers you need to know.

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.

Revenue details
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 details
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.

Margin details
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.

Looking ahead
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.

Investor sentiment

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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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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