Nucor earnings beat by $0.08, revenue fell short of estimates
On Tuesday, KeyBanc analysts reiterated their Overweight rating for Angi HomeServices stock (NASDAQ: ANGI) with a price target of $19, while InvestingPro data shows the stock currently trading at $15.68. This decision follows a comprehensive rebuild of Angi’s revenue model, incorporating new operating metrics disclosed in the company’s first-quarter 2025 report. According to InvestingPro analysis, the stock appears undervalued compared to its Fair Value, with three analysts recently revising their earnings estimates upward for the upcoming period.
Angi’s first-quarter results showed revenue of $246 million, surpassing both KeyBanc’s and the Street’s estimates of $240 million and $239 million, respectively. The company’s EBITDA also exceeded expectations, reaching $28 million compared to the anticipated $20 million by KeyBanc and $22 million by the Street. Despite facing macroeconomic challenges, Angi maintained its 2025 guidance, projecting revenue declines of 12-16% and EBITDA between $135 million and $150 million. InvestingPro data reveals impressive gross profit margins of 94.88% and a healthy current ratio of 2.15, indicating strong operational efficiency and solid financial health.
The analysts increased their revenue estimates for Angi by 4% for 2025 and 6% for 2026, driven by improvements in service requests, leads, and revenue per lead. While the 2025 EBITDA estimate remains unchanged, the 2026 estimate was lowered by 3% due to anticipated higher operating expenses. The unchanged price target of $19 reflects a valuation of 7 times the estimated 2026 EV/EBITDA, supported by a return to revenue growth. With a P/E ratio of 14.86 and strong financial metrics, InvestingPro subscribers can access detailed valuation analysis and 8 additional exclusive ProTips about ANGI’s investment potential.
Key takeaways from the model rebuild highlight a potential path for Angi to achieve positive revenue growth by 2026. Although service requests and leads declined year-over-year in the first quarter, improvements were noted in proprietary channels, which constitute over 80% of volume. Angi expects network channel volume to stabilize while proprietary channels continue to improve in volume and revenue per lead.
Angi’s management remains optimistic about maintaining strong incremental margins, with a contribution margin of 36% reported in the first quarter. Plans to increase marketing spend are anticipated to be balanced by enhanced product and sales efficiency, leveraging AI and online professional acquisition strategies.
In other recent news, ANGI Homeservices (NASDAQ:ANGI) reported a strong performance for the first quarter of 2025, significantly surpassing earnings and revenue forecasts. The company achieved an earnings per share (EPS) of $0.30, which was notably higher than the anticipated loss of $0.0007. Revenue for the quarter reached $245.9 million, exceeding the forecast of $241.64 million. Goldman Sachs analyst Eric Sheridan raised the firm’s price target for ANGI Homeservices to $27 from $25, maintaining a Neutral rating. Sheridan highlighted that the company’s revenue declines were less severe than expected, and strong cost management led to better-than-anticipated adjusted EBITDA margins.
ANGI Homeservices has confirmed its forecast of declining revenues for the full year of 2025 but anticipates improving trends in both revenue and profitability as the year progresses. The company is focusing on strategic initiatives like "Homeowner Choice" and AI integration, which are expected to drive future growth. ANGI also aims to enhance its product offerings and expand its AI capabilities, with a focus on proprietary lead volume and advertising. These developments underscore the company’s strategic priorities and its potential for future revenue growth and profitability.
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