Stock Analysis - FirstService (FSV) has experienced significant selling pressure, declining 6 8% over the past four weeks, but is now in oversold territory, indicating potential for a trend reversal [1] - The Relative Strength Index (RSI) is a key technical indicator used to identify oversold stocks, with an RSI below 30 typically indicating oversold conditions [2] - Stocks oscillate between overbought and oversold states, and RSI helps identify potential price reversals, making it useful for spotting entry opportunities during unwarranted selling pressure [3] Technical Indicators - FSV's RSI reading of 26 92 suggests the heavy selling may be exhausting itself, potentially leading to a reversal in the stock's trend [5] - RSI has limitations and should not be used in isolation for investment decisions [4] Fundamental Indicators - Sell-side analysts covering FSV have raised earnings estimates for the current year, with the consensus EPS estimate increasing by 1 1% over the last 30 days, signaling potential price appreciation [6] - FSV holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 stocks ranked based on earnings estimate revisions and EPS surprises, further supporting its potential turnaround [7]

FirstService (NASDAQ: FSV ) is a Canadian company that operates as a strata manager and property manager through its FirstService Residential segment . In Q3’24, this segment saw weak growth, but this was more than offsetI'm an insurance Case Manager with a deep interest in investing. My investment philosophy is all about buying high quality stocks and great businesses. My favorite businesses are those led by disciplined capital allocators, earn exceptional returns on capital, and can compound their investe ...

Investors might want to bet on FirstService (FSV) , as it has been recently upgraded to a Zacks Rank #2 (Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.Individual investors often fi ...

Financial Data and Key Metrics - Consolidated revenues increased by 25% YoY, with organic revenue growth at 6% [3] - EBITDA for the quarter rose by 43% YoY, with a margin of 11.5%, up 150 basis points from the previous year [3] - Earnings per share (EPS) increased by 30% YoY [3] - Year-to-date consolidated revenues reached $3.85 billion, up 18% YoY, with adjusted EBITDA at $376 million, a 20% increase YoY [11] - Adjusted EPS for the year-to-date was $3.66, exceeding the $3.56 reported in the same period last year [11] Business Line Performance FirstService Residential - Revenues increased by 4% YoY, with organic growth at 3% [3] - EBITDA for the division was $58.6 million, a 4% increase YoY, with a margin of 10.5% [12] - Budgetary pressures, particularly in Florida due to new legislation, have impacted growth, but normalization is expected in the coming quarters [4][19] FirstService Brands - Revenues surged by 44% YoY, driven by the acquisition of Roofing Corp. of America and organic growth of 10% [5] - EBITDA for the division increased by 74% YoY to $105.8 million, with a margin of 12.6%, up 200 basis points YoY [13] - Restoration brands (Paul Davis and FIRST ONSITE) recorded 25% YoY revenue growth, with organic growth exceeding 15% [6] - The roofing segment performed in line with expectations, with modest seasonality expected in Q4 [8][9] Market Performance - Restoration brands benefited from regional weather events in Canada, including rainstorms, flooding, and wildfires, which drove a spike in claims [6] - Hurricane Helene and Milton contributed to $40 million in estimated storm-related revenue for Q4, primarily from mitigation work [8] - The roofing segment saw a modest uptick from Hurricane Milton, with more significant repair opportunities expected in H1 2025 [9] Strategic Direction and Industry Competition - The company is focused on maintaining a conservative balance sheet with $350 million in cash and undrawn credit facilities, positioning it to seize growth opportunities [15] - The M&A pipeline is active, particularly in the roofing segment, driven by market consolidation and private equity activity, though valuations are high [20][23] - The company expects to deliver stronger financial performance in 2024, with annual revenue growth approaching 20% and EBITDA growth exceeding 20% [16] Management Commentary on Operating Environment and Future Outlook - Management highlighted temporary disruptions in Florida due to new legislation but expects normalization and a return to mid-single-digit organic growth in the long term [4][19] - The company anticipates Q4 revenue growth to exceed 20%, with flat margins in FirstService Residential and higher margins in FirstService Brands [16] - The outlook for 2025 will be provided during the year-end earnings call in February [17] Other Important Information - The company generated $110 million in cash flow from operations before working capital movements and $77 million in operating cash flow, including working capital changes [14] - Capital expenditures for the quarter totaled $27 million, with year-to-date spending at $80 million, below the annual target of $115 million [15] Q&A Session Summary Question: Impact of HOA budgetary pressures on residential growth - The budgetary pressures, particularly in Florida, are expected to normalize by mid-2025, with the company returning to its long-term average of mid-single-digit organic growth [18][19] - The legislation in Florida is driving maintenance and repair projects, creating incremental opportunities for the company [19] Question: M&A pipeline and roofing segment activity - The M&A pipeline is most active in the roofing segment, driven by market consolidation and private equity activity, though valuations are high [20][23] - The company is cautious in its approach, focusing on strategic acquisitions [21] Question: Restoration segment margins and storm-related revenue - The restoration segment benefits from higher incremental EBITDA margins, estimated at around 20% for storm-related work [35] - The timing and amount of reconstruction work from recent hurricanes remain uncertain, with more clarity expected by the year-end call [26] Question: Labor productivity in home improvement - Labor productivity improvements in the home improvement segment are sustainable, driven by operational efficiencies and reduced labor hours [39][40] Question: Competitive landscape and organic growth - The competitive environment is intense, particularly in roofing and restoration, but the company remains confident in its organic growth opportunities [29][33]

FirstService (FSV) came out with quarterly earnings of $1.63 per share, beating the Zacks Consensus Estimate of $1.43 per share. This compares to earnings of $1.25 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 13.99%. A quarter ago, it was expected that this property services provider would post earnings of $1.26 per share when it actually produced earnings of $1.36, delivering a surprise of 7.94%.Over the last four quarters ...

Operating highlights:   Three months ended Nine months ended   September 30 September 30   2024 2023 2024 2023               Revenues (millions)$1,396.0 $1,117.1 $3,851.5 $3,255.3 Adjusted EBITDA (millions) (note 1) 160.0  111.9  375.8  312.4 Adjusted EPS (note 2) 1.63  1.25  3.66  3.56               GAAP Operating Earnings 125.9  73.6  247.9  196.8 GAAP EPS 1.34  0.73  2.26  2.10                TORONTO, Oct. 24, 2024 (GLOBE NEWSWIRE) -- FirstService Corporation (TSX: FSV; NASDAQ: ...

GREENWOOD VILLAGE, Colo., Oct. 21, 2024 (GLOBE NEWSWIRE) -- First Onsite Property Restoration (First Onsite), one of North America's largest disaster recovery and restoration providers for commercial enterprises announced it has expanded its presence in New England by hiring a team of seasoned and long-established commercial restoration professionals in Massachusetts. First Onsite's new team is led by 25-year restoration veterans Gary Grout and Jason Green. Most recently, Gary was the President and Jason wa ...

Wall Street expects a year-over-year increase in earnings on higher revenues when FirstService (FSV) reports results for the quarter ended September 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. The earnings report, which is expected to be released on October 24, 2024, might help the stock move higher if these key numbers are better tha ...

TORONTO, Oct. 03, 2024 (GLOBE NEWSWIRE) -- FirstService Corporation (TSX and NASDAQ: FSV) ("FirstService") announced today that it will release its financial results for the third quarter ended September 30, 2024 by press release on Thursday, October 24, 2024 at approximately 7:30 am ET. The conference call to review these financial results will take place at 11:00 am ET on Thursday, October 24, 2024, and will be hosted by D. Scott Patterson, CEO, and Jeremy Rakusin, CFO. This call is being webcast live at ...

Training burn of a structure and vehicles designed for fire and safety awareness Illinois Live Burn And Education event Picture shows a training burn in Twins Lakes, WI. in June for fire safety awareness. First Onsite is partnering with FireTech Inc, on September 30 to present a live training burn at Stephenson Fairgrounds in Freeport, Il. The Freeport Fire Department will assist and train as a part of the event. Photo Credit: FireTech Inc GREENWOOD VILLAGE, Colo., Sept. 23, 2024 (GLOBE NEWSWIRE) -- First O ...