FirstService Meets on Revenues, Misses on EPS

Seth Jayson, The Motley Fool
Updated

FirstService (NAS: FSRV) reported earnings on July 25. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), FirstService met expectations on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue increased and GAAP earnings per share expanded significantly.


Gross margins dropped, operating margins contracted, and net margins increased.

Revenue details
FirstService recorded revenue of $593.2 million. The five analysts polled by S&P Capital IQ predicted sales of $598.4 million on the same basis. GAAP reported sales were 4.9% higher than the prior-year quarter's $565.5 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 $0.45. The seven earnings estimates compiled by S&P Capital IQ anticipated $0.47 per share. GAAP EPS of $0.28 for Q2 were 155% higher than the prior-year quarter's $0.11 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 34.8%, 230 basis points worse than the prior-year quarter. Operating margin was 4.8%, 30 basis points worse than the prior-year quarter. Net margin was 1.8%, 80 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $620.0 million. On the bottom line, the average EPS estimate is $0.60.

Next year's average estimate for revenue is $2.34 billion. The average EPS estimate is $1.54.

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 $33.39.

The article FirstService Meets on Revenues, Misses on EPS originally appeared on Fool.com.

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 ofMotley 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.

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