APi Group (APG) Earnings Preview: What to Expect on October 31st
Investors are gearing up for APi Group’s (APG) quarterly earnings release on Thursday, October 31st, 2024. This announcement holds significant weight, with analysts projecting an earnings per share (EPS) of $0.52. While exceeding estimates would be a positive sign, investors will be particularly focused on the company’s guidance for the next quarter. This is because market reactions often hinge on management’s outlook for the future.
Looking Back at Past Earnings Performance
APi Group has a history of exceeding earnings expectations, but its share price hasn’t always followed suit. In the previous quarter, the company beat EPS by $0.02, only to see its share price drop by 5.3% the following day. Here’s a breakdown of APi Group’s recent earnings performance and the subsequent price changes:
| Quarter | EPS Estimate | EPS Actual | Price Change (%) |
|—|—|—|—|
| Q2 2024 | $0.47 | $0.49 | -5.0% |
| Q1 2024 | $0.33 | $0.34 | -1.0% |
| Q4 2023 | $0.43 | $0.44 | 0.0% |
| Q3 2023 | $0.45 | $0.48 | 1.0% |
Analyst Sentiment and Expectations
Staying informed about market sentiment and expectations is crucial for investors. Currently, APi Group has received a consensus rating of “Outperform” from 3 analysts. The average one-year price target sits at $39.67, suggesting a potential 16.88% upside.
Peer Analysis: Comparing APi Group to its Competitors
To gain a better understanding of APi Group’s market positioning, it’s helpful to compare its performance with its industry peers. Here’s a snapshot of analyst ratings and average 1-year price targets for Fluor, MasTec, and WillScot Holdings:
| Company | Consensus Rating | Average 1-Year Price Target | Potential Upside (%) |
|—|—|—|—|
| Fluor | Buy | $59.71 | 75.93% |
| MasTec | Buy | $136.36 | 301.77% |
| WillScot Holdings | Buy | $47.0 | 38.48% |
Key Takeaways from Peer Analysis
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Revenue Growth:
APi Group ranks at the bottom among its peers in terms of revenue growth, with a -2.32% decline over the past three months. This indicates a struggle to maintain strong top-line earnings.*
Gross Profit:
APi Group sits in the middle for gross profit. This suggests its ability to manage costs effectively, but it may not be outperforming its competitors in this area.*
Return on Equity:
APi Group leads its peers in terms of return on equity (ROE), highlighting its ability to generate satisfactory returns for shareholders.A Closer Look at APi Group
APi Group Corp operates in two primary segments:
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Safety Services:
This segment focuses on providing safety services across North America, Asia Pacific, and Europe. It offers a range of solutions, including fire protection, HVAC, and entry systems, catering to various industries such as commercial, education, healthcare, and industrial settings.*
Specialty Services:
This segment provides infrastructure services and specialized industrial plant services. These services include maintenance and repair of critical infrastructure such as underground electric, gas, water, sewer, and telecommunications systems.Financial Performance Breakdown
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Market Capitalization:
APi Group’s market capitalization surpasses industry standards, indicating a robust market position and significant size.*
Revenue Growth:
The company’s revenue growth has faced challenges over the past three months. As of June 30, 2024, revenue declined by -2.32%, lagging behind its industry peers.*
Net Margin:
APi Group’s net margin falls below industry averages, suggesting potential challenges in maintaining strong profitability. With a net margin of 3.58%, the company may face hurdles in effective cost management.*
Return on Equity (ROE):
APi Group’s ROE is below industry benchmarks, suggesting potential difficulties in efficiently using equity capital. With an ROE of 2.41%, the company may need to address challenges in generating satisfactory returns for shareholders.*
Return on Assets (ROA):
APi Group’s ROA lags behind industry averages, indicating challenges in maximizing returns from its assets. With an ROA of 0.82%, the company may face hurdles in achieving optimal financial performance.*
Debt Management:
APi Group’s debt-to-equity ratio is notably higher than the industry average. This higher reliance on borrowed funds indicates a higher level of financial risk.Stay Informed with APi Group’s Earnings Calendar
To stay up-to-date on all earnings releases for APi Group, visit the earnings calendar on our site. This will provide you with the latest information and announcements from the company.
