The chart below shows how FSV performed 10 days before and after its earnings report, based on data from the past quarters. Typically, FSV sees a -0.88% change in stock price 10 days leading up to the earnings, and a -1.30% change 10 days following the report. On the earnings day itself, the stock moves by +0.47%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Revenue Growth Exceeds Expectations: 20% growth in revenues for 2024, significantly exceeding the long-term goal of 10%.
EBITDA Growth and Margin Improvement: 33% increase in EBITDA for Q4, with a 50 basis point improvement in margins, reflecting operational efficiency.
Consolidated Revenue Increase: 27% rise in consolidated revenues for Q4, driven by strong performance in the brands division.
Q4 Revenue Surge: 45% revenue growth in FirstService Brands for Q4, primarily due to the acquisition of Roofing Corp of America and strong restoration segment results.
Dividend Increase Announcement: 10% increase in annual dividend to $1.10 per share, reflecting robust financial performance and commitment to returning value to shareholders.
Negative
Earnings Performance Shortfall: FirstService Corporation reported an EPS of $1.34, missing expectations of $1.37, indicating a shortfall in earnings performance.
Budgetary Pressures Impacting Profitability: The FirstService Residential division experienced budgetary pressures from rising costs, including insurance premiums, which negatively impacted management contracts and overall profitability.
Corporate Cost Surge: Corporate costs surged to almost $9 million in Q4, up from just over $1 million in the same quarter last year, primarily due to non-cash foreign exchange adjustments, adversely affecting earnings.
Interest Cost Surge: Annual interest costs increased by 75% in 2024 compared to the previous year, driven by higher interest rates and increased debt levels, which constrained EPS growth to only 7%.
Organic Growth Outlook: Organic growth for FirstService Residential is expected to be in the low single-digit range for the first half of 2025, indicating a slowdown in growth momentum compared to previous periods.
FirstService Corporation (NASDAQ:FSV) Q4 2024 Earnings Call Transcript
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