Canada's FirstService Q3 results beat on new residential contract wins

FIRSTSERVICE

Today 12:38

Overview
Canada property services firm's Q3 revenue rose 6% yr/yr, beating analyst expectations
Adjusted EPS for Q3 increased 7% and beat analyst expectations
Growth driven by new Residential contracts; Brands division offset by weaker roofing operations

Outlook
Company says it remains confident in achieving previously communicated full-year performance targets
FirstService cites macroeconomic challenges but expects to meet full-year targets

Result Drivers
NEW CONTRACT WINS - Co said Residential division growth was driven by new contracts and expanded labor services
RESTORATION & FIRE PROTECTION - Brands division organic growth attributed to Restoration brands and Century Fire Protection
ROOFING OPERATIONS - Co said reduced profitability in roofing operations weighed on Brands division margins

Company press release: ID:nGNXHyr0n

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$1.53 bln
$1.49 bln (4 Analysts)
Q3 Adjusted EPS
Beat
$1.89
$1.84 (7 Analysts)
Q3 EPS
 
$0.99
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the real estate services peer group is "buy"
The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 22 three months ago

Reuters Recommended Reads
Oct 22 - Canada's Mullen Group Q3 revenue beats on US 3PL unit strength
Oct 20 - Canada's Algoma Central sees Q3 revenue up 26% on freight rates
Oct 21 - Canada's StorageVault Q3 swings to net loss on non-cash and non-recurring items

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)