’Reddit is built for this moment’ - Stock soars on crushed earnings
Investing.com - William Blair has reiterated an Outperform rating on BrightView Holdings (NYSE:BV), currently trading at $15.21 with a market capitalization of $1.61 billion, despite expectations that shares will decline following delayed growth projections.
The landscaping company has pushed back its anticipated inflection in land maintenance organic growth from the second half of this year to fiscal 2026 at the earliest, according to William Blair’s analysis of the company’s outlook.
BrightView’s development business forecast has been revised downward, now expected to decline 1% for the full year compared to previous projections of 4.5% growth, a surprising shift given the segment’s healthy performance and backlog in recent quarters.
Despite these growth challenges, BrightView maintained the midpoint of its EBITDA guidance of $318.2 million while increasing its free cash flow outlook to $99.8 million, benefiting from a streamlined operating structure and reduced fleet maintenance spending.
William Blair expressed confidence in management’s ability to eventually achieve positive land maintenance organic growth, citing improving fundamentals in frontline employee and customer retention, though the timing will likely depend on broader trade negotiations and business environment clarity. According to InvestingPro analysis, the company appears undervalued, with additional ProTips indicating expected net income growth and strong recent performance. Unlock more insights with InvestingPro’s comprehensive research report.
In other recent news, BrightView Holdings reported a robust second quarter for fiscal year 2025, surpassing both earnings and revenue projections. The company achieved earnings per share of $0.14, exceeding the expected $0.11, and reported revenues of $662.6 million, surpassing the forecasted $645.92 million. Additionally, BrightView raised its full-year adjusted EBITDA guidance to $355 million, signaling strong future performance. In another development, BrightView revised its fiscal year 2025 financial guidance, lowering revenue projections due to macroeconomic pressures, while maintaining its profit targets. The company now expects total revenue between $2.68 billion and $2.73 billion, down from its previous forecast. Despite the revenue reduction, BrightView maintained its adjusted EBITDA guidance and raised its adjusted free cash flow projection. Furthermore, BrightView completed an upsized secondary offering of 11.6 million shares of common stock, with all proceeds going to the selling stockholder, KKR BrightView Aggregator L.P. The company did not receive any proceeds from this offering.
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