FirstService
The 10-second takeaway
For the quarter ended March 31 (Q1), FirstService missed slightly on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue increased slightly and GAAP loss per share increased.
Margins dropped across the board.
Revenue details
FirstService tallied revenue of $490.1 million. The four analysts polled by S&P Capital IQ anticipated revenue of $497.8 million on the same basis. GAAP reported sales were 2.4% higher than the prior-year quarter's $478.4 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 -$0.55. The two earnings estimates compiled by S&P Capital IQ predicted $0.13 per share. GAAP EPS were -$0.55 for Q1 versus -$0.33 per share for the prior-year quarter.
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 32.4%, 480 basis points worse than the prior-year quarter. Operating margin was -0.5%, 250 basis points worse than the prior-year quarter. Net margin was -2.8%, 130 basis points worse than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $596.1 million. On the bottom line, the average EPS estimate is $0.60.
Next year's average estimate for revenue is $2.39 billion. The average EPS estimate is $2.05.
Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 39 members out of 50 rating the stock outperform, and 11 members rating it underperform. Among 16 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 14 give FirstService a green thumbs-up, and two 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 $36.43.
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