The 10-second takeaway
For the quarter ended Dec. 31 (Q4), FirstService missed slightly on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share increased.
Gross margins dropped, operating margins improved, net margins improved.
FirstService reported revenue of $594.9 million. The six analysts polled by S&P Capital IQ expected sales of $606.2 million on the same basis. GAAP reported sales were 7.8% higher than the prior-year quarter's $552.1 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.42. The four earnings estimates compiled by S&P Capital IQ predicted $0.47 per share on the same basis. GAAP EPS were $2.01 for Q4 compared to -$0.13 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 35.5%, 450 basis points worse than the prior-year quarter. Operating margin was 5.1%, 80 basis points better than the prior-year quarter. Net margin was 11.4%, 1,160 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $497.7 million. On the bottom line, the average EPS estimate is $0.12.
Next year's average estimate for revenue is $2.36 billion. The average EPS estimate is $2.10.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 40 members out of 51 rating the stock outperform, and 11 members rating it underperform. Among 17 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 14 give FirstService a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on FirstService is outperform, with an average price target of $33.86.
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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. 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.