FirstService Corp. (NASDAQ:FSRV) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 1.34%.
FirstService Corp. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 28.89% to $0.58 in the quarter versus EPS of $0.45 in the year-earlier quarter.
Revenue: Rose 1.47% to $601.9 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: FirstService Corp. reported adjusted EPS income of $0.58 per share. By that measure, the company beat the mean analyst estimate of $0.39. It missed the average revenue estimate of $614.93 million.
Quoting Management: “There were several highlights to our second quarter,” said Jay S. Hennick, Founder and Chief Executive Officer of FirstService. “Colliers International posted very strong growth in EBITDA and completed the consolidation of all of its operations in Germany; our residential property management business completed a significant milestone by re-branding all 18 regional operations across North America as “FirstService Residential”; we simplified our capital structure by eliminating our outstanding preferred shares; and we instituted our first ever dividend on our common shares. Looking forward, we expect FirstService to deliver strong year over year EBITDA and EPS growth for the balance of the year,” he concluded.
Key Stats (on next page)…
Revenue increased 20.85% from $498.05 million in the previous quarter. EPS increased to $0.58 in the quarter versus EPS of $-0.20 in the previous quarter.
Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.61 to a profit $0.6. For the current year, the average estimate has moved down from a profit of $1.7 to a profit of $1.65 over the last ninety days.
Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.
(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)