FirstService (NASDAQ:FSV) Stock Jumps 5.8% on Better-Than-Expected Earnings

Key Points

• FirstService shares rose 5.8% after the company reported quarterly earnings of $1.89 per share, beating analyst estimates of $1.84. Revenue increased 5.8% year over year, while trading volume was substantially below average.
• The company declared a quarterly dividend of $0.305 per share, equivalent to $1.22 annually and a 0.8% yield; its payout ratio is 34.56%.
• Analysts maintain a “Moderate Buy” consensus, with eight Buy ratings and three Holds and an average price target of $183.70, compared with the stock’s trading price near $144.48.

Shares of FirstService Corporation (NASDAQ:FSV - Get Free Report) TSE: FSV rose 5.8% during mid-day trading on Thursday following a stronger than expected earnings report. The stock traded as high as $145.04 and last traded at $144.4830. 13,488 shares were traded during trading, a decline of 94% from the average session volume of 209,459 shares. The stock had previously closed at $136.59.

The financial services provider reported $1.89 earnings per share for the quarter, topping analysts' consensus estimates of $1.84 by $0.05. FirstService had a net margin of 2.88% and a return on equity of 18.07%. During the same period last year, the company earned $1.76 EPS. FirstService's revenue for the quarter was up 5.8% compared to the same quarter last year.

FirstService Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, October 7th. Shareholders of record on Wednesday, September 30th were issued a $0.3050 dividend. This represents a $1.22 annualized dividend and a yield of 0.8%. The ex-dividend date of this dividend was Wednesday, September 30th. FirstService's dividend payout ratio is presently 34.56%.

Wall Street Analyst Weigh In

A number of equities research analysts have recently commented on FSV shares. TD raised their price objective on shares of FirstService from $204.00 to $207.00 and gave the stock a "buy" rating in a research note on Tuesday, July 14th. Deutsche Bank Aktiengesellschaft reiterated a "hold" rating and issued a $144.00 target price on shares of FirstService in a research note on Friday, July 24th. Weiss Ratings reissued a "hold (c-)" rating on shares of FirstService in a report on Wednesday, August 26th. Canadian Imperial Bank of Commerce set a $170.00 price target on shares of FirstService in a research report on Thursday, October 15th. Finally, Wall Street Zen cut shares of FirstService from a "buy" rating to a "hold" rating in a report on Saturday, August 1st. Eight research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $183.70.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. Rockefeller Capital Management L.P. boosted its holdings in FirstService by 73.6% in the 4th quarter. Rockefeller Capital Management L.P. now owns 302 shares of the financial services provider's stock worth $47,000 after buying an additional 128 shares during the last quarter. Fifth Third Bancorp increased its position in shares of FirstService by 23.7% during the first quarter. Fifth Third Bancorp now owns 627 shares of the financial services provider's stock worth $87,000 after purchasing an additional 120 shares in the last quarter. Hardy Reed LLC purchased a new stake in shares of FirstService during the first quarter worth approximately $216,000. Sequoia Financial Advisors LLC acquired a new position in FirstService in the 2nd quarter valued at $220,000. Finally, State of Wyoming acquired a new position in FirstService in the 1st quarter valued at $247,000. 69.35% of the stock is owned by hedge funds and other institutional investors.

FirstService Stock Up 5.9%

The business has a fifty day simple moving average of $135.57 and a two-hundred day simple moving average of $138.69. The company has a current ratio of 1.63, a quick ratio of 1.63 and a debt-to-equity ratio of 1.03. The company has a market cap of $6.32 billion, a PE ratio of 40.97, a price-to-earnings-growth ratio of 3.07 and a beta of 0.95.

FirstService Company Profile

FirstService Corporation is a Canadian provider of property management and property services serving customers primarily in the United States and Canada. The company operates through two main businesses: FirstService Residential and FirstService Brands.

FirstService Residential provides property management services for condominium and homeowners' associations, cooperatives, and other residential communities. Its services include community administration, financial management, maintenance coordination, customer support, and related operational services.

FirstService Brands operates and supports a network of property-service businesses, including companies involved in property restoration, painting, flooring, window treatments, and other residential and commercial services.

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