BrightView Misses Q4 Revenue Estimates, Beats on Earnings and EBITDA

Key Metrics:

* Revenue: $599.2 million (4.4% YoY decline, 2.7% miss)
* Adjusted EPS: $0.04 (in line with estimates)
* Adjusted EBITDA: $52.1 million (8.7% margin, 6.1% beat)

Full-Year Guidance:

* Revenue: $2.8 billion (midpoint)
* EBITDA: $345 million (midpoint)

Highlights:

* Soft revenue in Q4, attributed to a challenging commercial real estate environment
* Strong EBITDA performance
* Positive outlook for full-year revenue and EBITDA
* Stable operating margin
* Declining free cash flow margin

Company Overview:

BrightView (NYSE:BV) is a leading provider of landscaping design, development, and maintenance services. With a strong focus on facility services, the company serves commercial and residential clients.

Sales Growth:

* 2.3% compounded annual growth rate over the last five years
* 1.8% annual revenue decline over the last two years
* Expected 3.1% revenue growth over the next 12 months

Profitability:

* Average operating margin of 3.4% over the last five years
* Operating margin improved by 5.5 percentage points over the last five years
* Break-even margin in line with the same quarter last year

Earnings Per Share:

* 7.1% annual decline in EPS over the last five years
* 9.3% annual EPS decline over the last two years
* EPS of $0.04 in Q4, beating estimates
* Expected full-year EPS growth of 11.6%

Conclusion:

BrightView's Q4 results were mixed. While the company exceeded expectations on EBITDA and EPS, revenue missed estimates. Looking forward, BrightView maintains its revenue and EBITDA guidance for the full year. The stock's valuation, business qualities, and latest earnings should be considered before making an investment decision.