Canada's Boyd Group Q3 sales up 28%, slightly misssing estimates
Overview
Canada collision repair operator's Q3 sales rose 28% yr/yr, but slightly missed analyst expectations
Adjusted EPS for Q3 declined 18% yr/yr and missed analyst expectations
Margin expansion driven by Project 360 cost savings and Joe Hudsons acquisition synergies
Outlook
Company expects Project 360 and synergies to deliver $65 mln savings in 2026
Boyd Group expects to open 11 start-up locations in Q4 2026
Company says same-store sales growth remained positive in October 2026
Result Drivers
NEW LOCATIONS - Revenue growth driven by $206 mln contribution from 342 new locations and 2.2% same-store sales growth
MARGIN MIX - Margin gains from higher paint, sublet, scanning and calibration margins, partly offset by lower labour and part margins
COST SAVINGS - $50 mln in year-to-date savings from Project 360 and acquisition synergies
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Sales | Slight Miss* | $1.01 bln | $1.02 bln (10 Analysts) |
Q3 Adjusted EPS | Miss | $0.68 | $0.85 (9 Analysts) |
Q3 EPS | $0 | ||
Q3 Adjusted Net Income | $18.99 mln | ||
Q3 Net Income | $81,000 | ||
Q3 Adjusted EBITDA | $132.12 mln | ||
Q3 Gross Margin | 46.70% |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the personal services peer group is "buy"
Wall Street's median 12-month price target for Boyd Group Services Inc is C$225.00, about 80% above its November 10 closing price of C$124.97
The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 22 three months ago
Reuters Recommended Reads
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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)