Stock Monitor: Payment Data Systems Post Earnings Reporting
LONDON, UK / ACCESSWIRE / April 10, 2018 / Active-Investors.com has just released a free earnings report on ServiceMaster Global Holdings, Inc. (NYSE: SERV) (''ServiceMaster''). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=SERV. The Company reported its fourth quarter and full fiscal year 2017 operating and financial results on February 27, 2018. The parent Company of Terminix, Merry Maid, and other service franchises topped earnings estimates and provided guidance for FY18. Register today and get access to over 1000 Free Research Reports by joining our site below:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, ServiceMaster Global Holdings most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
Earnings Highlights and Summary
For the fourth quarter of the fiscal year 2017, ServiceMaster recorded revenues of $666 million, up 5.1% compared to $633 million in Q4 2016, driven primarily by an organic growth of 8% at the American Home Shield (AHS) and the impact of acquiring Landmark Home Warranty (''Landmark'') in November 2016. The Company's revenue numbers fell short of analysts' estimates of $666.3 million.
For Q4 2017, ServiceMaster posted a net income of $306 million, or $2.26 per share, versus $31 million, or $0.23 per share, in Q4 2016. The Company's reported quarter net income was favorably impacted by an adjustment to deferred income taxes of $271 million, driven by the enactment of the Tax Cuts and Jobs Act 2017 (TCJA) on December 22, 2017. ServiceMaster's adjusted net income was $48 million, or $0.35 per share, in Q4 2017 versus $60 million, or $0.44 per share, in Q4 2016. The Company's earnings beat Wall Street's estimates of $0.34 per share.
For the full year FY17, ServiceMaster generated revenues of $2.91 billion, reflecting a growth of 6% compared to $2.75 billion in FY16.
ServiceMaster's net income was $510 million, or $3.76 per share, in FY17 versus $155 million, or $1.13 per share, in FY16. The Company's net income for FY17 was favorably impacted by the $271 million adjustment to deferred income taxes driven by the enactment of the TCJA, as well as the pre-tax income of FY16, including charges for fumigation-related matters of $93 million and an insurance reserve adjustment of $23 million. ServiceMaster's adjusted net income was $286 million, or $2.11 per share, in FY17 versus $281 million, or $2.04 per share, in FY16.
During Q4 2017, ServiceMaster's Terminix segment's revenues grew 1% to $353 million on a y-o-y basis, as increases in core termite control and wildlife exclusion sales were offset by a decline in core pest control revenues. The segment's adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) fell 15% to $62 million on a y-o-y basis, primarily reflecting an increase in sales and marketing costs of $8 million; an increase in termite damage claims of $1 million; an increase in insurance costs of $1 million; an increase in other costs of $2 million; and an increase in production labor costs of $1 million, associated with the Company's effort to improve safety, customer service, and retention.
For Q4 2017, ServiceMaster's AHS segment recorded revenues of $257 million, up 10% on a y-o-y basis, driven by new unit sales growth, improved price realization, and the impact of the Landmark acquisition. The AHS segment's organic revenue growth was 8% in the reported quarter. For Q4 2017, the segment's adjusted EBITDA rose 1% on a y-o-y basis, primarily reflecting an increase of $10 million from the conversion of higher organic revenues and a decrease in other costs of $1 million.
ServiceMaster's Franchise Services Group (FSG) reported a hike in revenues of 11% to $55 million, driven by higher royalty fee revenues related to disaster restoration services and janitorial national accounts revenues. The segment's adjusted EBITDA grew 5% on a y-o-y basis, primarily reflecting an increase of $2 million in revenue conversion.
For FY17, ServiceMaster's net cash provided from operating activities from continuing operations increased to $413 million from $325 million in FY16. During FY17, ServiceMaster used $85 million to purchase 2.2 million shares of its stock compared to a usage of $60 million to purchase 1.6 million shares of its stock in FY16. ServiceMaster's free cash flow was $338 million in FY17 compared to $270 million in FY16.
For FY18, ServiceMaster is forecasting revenues to range from $3.02 billion to $3.05 billion, or an increase in the band of 4% to 5% on a y-o-y basis. The Company's adjusted EBITDA is anticipated to range from $690 million to $705 million, or an increase in the band of 2% to 4% on a y-o-y basis, for FY18.
ServiceMaster is estimating an organic revenue growth for the Terminix segment to range from 1% to 2% on a y-o-y basis. The Company expects a high single-digit organic revenue growth for the AHS segment, and a mid-single-digit organic revenue growth for the FSG for FY18.
Stock Performance Snapshot
April 09, 2018 - At Monday's closing bell, ServiceMaster Global's stock marginally advanced 0.16%, ending the trading session at $50.90.
Volume traded for the day: 850.50 thousand shares, which was above the 3-month average volume of 701.89 thousand shares.
Stock performance in the previous six-month period - up 7.23%; and past twelve-month period - up 26.15%
After yesterday's close, ServiceMaster Global's market cap was at $6.98 billion.
Price to Earnings (P/E) ratio was at 28.81.
The stock is part of the Services sector, categorized under the Business Services industry. This sector was flat at the end of the session.
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