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  5. FSV: Your comments please on recent earnings of these two companies. [FirstService Corporation]
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Q: Your comments please on recent earnings of these two companies. Thanks.
Asked by Greg on October 25, 2024
5i Research Answer:

FSV is posted; WCN EPS was $1.35, ahead of estimates ($1.29). Revenue was $2.33B, about 2% ahead of estimates. EBITDA of $787.4M  was also 2% better. Guidance was raised. Waste Connections' EPS beat and 2024 guidance raise suggest it's reaping more benefits from a renewed focus on operational execution under CEO Ron Mittelstaedt. Organic-revenue growth ticked up, as price increases moderated with inflation and volume declines narrowed on improved activity in the western region. Ebitda margin expanded 120 bps year over year, in line with guidance, reflecting upside in solid waste. The company raised its outlook for 2024 Ebitda growth to midteens, and expects it to approach the high-single digits in 2025. Free cash flow was strong, though Waste Connections merely affirmed its full-year target. The company acquired $700 million of annual revenue during the quarter. Leverage ended 3Q at 2.7x, supporting additional M&A outlays and a 10.5% increase in the dividend.