Overview

• Canada property services firm's Q2 revenue up 2% yr/yr, missed analyst expectations

• Adjusted EPS for Q2 rose 2% and beat analyst expectations

• Company says macroeconomic headwinds tempered organic growth in Q2

Outlook

• Company expects top-line growth in H2 to be similar or modestly better than year-to-date

• Company sees continued macroeconomic headwinds tempering organic growth

Result Drivers

• MACROECONOMIC HEADWINDS - Co said continued macroeconomic headwinds tempered organic growth in Q2

• SEGMENT MIX - Organic growth at FirstService Residential was driven by new contract wins and increased labor-related services, while FirstService Brands saw a decline in organic revenue due to reduced activity at Roofing Corp. of America

• DIVESTITURE IMPACT - Divestiture of non-core residential aquatic operations reduced reported growth at FirstService Residential

Company press release: ID:nGNXbcFNSG

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q2 Revenue	Miss	$1.45 bln	$1.49 bln (6 Analysts)
Q2 Adjusted EPS	Beat	$1.75	$1.73 (8 Analysts)
Q2 EPS		$1

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 22 times the next 12-month earnings vs. a P/E of 22 three months ago

Reuters Recommended Reads

• July 23 - Luxembourg's Altisource Q2 service revenue rises on customer wins

• July 21 - UK's Mitie Group Q1 revenue rises 10% on strong Business Services

• July 22 - Rollins Q2 revenue slightly beats estimates on slower residential growth

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