Q: First Sevice is trading significantly lower today after reporting earnings. I hold this secrity and have done very well with it. Is this serious or a one quarter blip? Your overall thoughts would be appreciated. Thank you.
5i Research Answer:
FSV shares are down roughly 5% after earnings today. EPS for the quarter was $1.34 vs estimates of $1.36. Revenue of $1.37 bln was ahead of estimates at $1.32 billion. Residential grew 5% with 3% organic growth. Revenue for Brands was up 45% with 16% organic growth largely due to weather events and large loss damages leading to restoration demand. It looked like a fine quarter to us overall and don't think much has changed with these results.