FirstService Earnings: Here’s Why the Stock is Down Now

FirstService Corp. (NASDAQ:FSRV) had a loss and missed Wall Street’s expectations, AND 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 down 0.47%.

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FirstService Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-0.2 in the quarter versus EPS of $-0.10 in the year-earlier quarter.

Revenue: Rose 1.64% to $498.1 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: FirstService Corp. reported adjusted EPS loss of $0.2 per share. By that measure, the company missed the mean analyst estimate of $-0.02. It missed the average revenue estimate of $510.37 million.

Quoting Management: “Results for the seasonally slow first quarter were better than anticipated as revenues at Colliers International, FirstService Residential and FirstService Brands were all up strongly versus the prior year,” said Jay S. Hennick, Founder and Chief Executive Officer of FirstService. As expected, results from Field Asset Services were down considerably from the prior year quarter due to sharp declines in foreclosure volumes associated with the recovery in the US economy. Colliers International had much stronger bottom line performance reflecting market share gains and continued growth through multi-market assignments, corporate services and investment and capital market activities,” he concluded.

Key Stats (on next page)…

Revenue decreased 21.25% from $632.53 million in the previous quarter. EPS decreased to $-0.2 in the quarter versus EPS of $0.68 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 $0.53 to a profit $0.45. For the current year, the average estimate has moved down from a profit of $2.05 to a profit of $1.85 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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