ANGI Homeservices Inc. (NasdaqGS:ANGI) is scheduled to report Q3 earnings results after markets close for trading on November 5, 2020.
The company is expected to report earnings of $0.06/share on revenue of $392.9 million. The consensus earnings per share (EPS) of $0.06/share is based on a poll of 4 analysts and represents a decline in eps of −18.3% over the same quarter last year, when the company reported earnings of $0.07/share.
The revenue forecast of $392.9 million based on a poll of 14 analysts implies a year-over-year (YoY) growth in revenue of 9.9%. Last year the company reported $357.4 million in revenue for the quarter.
| Metric | Expected | Prior Year | YoY Change |
|---|---|---|---|
| Revenue | $392.87 | $357.36 | 9.9% |
| EPS | $0.06 | $0.07 | −18.3% |
Earnings Call Trends
Historically, management has exceeded analyst expectations 4 out of the last 8 tracked quarters, and missed expectations 4 quarters.
What are your expectations from ANGI Homeservices Inc. for earnings this quarter? Let us know in the comments!
| Quarter | Expected | Reported | Surprise | Result |
|---|---|---|---|---|
| Q2, 2020 | $0.03 | $0.08 | 134.0% | Beat |
| Q1, 2020 | $0.03 | $0.02 | −28.4% | Missed |
| Q4, 2019 | $0.07 | $0.08 | 3.5% | Beat |
| Q3, 2019 | $0.08 | $0.07 | −12.4% | Missed |
| Q2, 2019 | $0.07 | $0.04 | −36.9% | Missed |
| Q1, 2019 | $0.05 | $0.06 | 20.3% | Beat |
| Q4, 2018 | $0.09 | $0.10 | 11.5% | Beat |
| Q3, 2018 | $0.09 | $0.08 | −7.2% | Missed |
In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending June 30, 2020, the stock price reacted by falling −17.3%.
| Report Date | Price Day Prior | Price Next Day | Change % | Result |
|---|---|---|---|---|
| August 10, 2020 | $15.71 | $13 | −17.3% | Decline |
| May 8, 2020 | $8.05 | $7.71 | −4.2% | Decline |
| February 5, 2020 | $8.53 | $8.07 | −5.4% | Decline |
| November 7, 2019 | $6.46 | $7.72 | 19.5% | Increase |
The other question to consider is one of earnings manipulation. There is a lot of pressure on management each quarter to deliver on earnings expectations. The Beneish M-Score is a statistical model that provides some insight into whether the company might be manipulating earnings. With a Beneish M-Score of −3.05, the model suggests that the company is not likely to be an earnings manipulator. A value of −3.05 implies a 0.1% chance of earnings manipulation.
Fundamentals And Technical Analysis
ANGI Homeservices Inc. is currently trading at $10.57/share, down −3.3% for the day. The company is trading at approximately 62.2% of its 52-week high of $17.05/share. The company’s stock price is down −18.7% since the last earnings report and down −4.5% over the previous week. The company’s 14 Day Relative Price Index (RSI) of 44.69 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.
The current share price implies a price-to-earnings (P/E) multiple of 244.84 and a forward P/E multiple of 56.66.
ANGI Homeservices Inc.’s current share price also implies a price-to-book (P/B) multiple of 4.09. The following table summarizes some other key fundamental ratios:
| Metric | Value |
|---|---|
| Last Reported Fiscal Period Key | FY2020.Q2 |
| Period End Date | June 30, 2020 |
| Stock Price (Current) | $10.57 |
| P/E Ratio | 244.8x |
| P/E Ratio (Fwd) | 56.7x |
| PEG Ratio | −3.5 |
| Total Debt / Total Capital | 4.2% |
| Levered Free Cash Flow | $184.6 million |
| EV / EBITDA | 30.1x |
ANGI Homeservices Inc. is a mid-cap stock with a market capitalization of $5.425 billion and a total enterprise value of $5.278 billion. The company operates in the Communication Services sector and the Interactive Media & Services industry.
ANGI Homeservices Inc. operates a digital marketplace for home services, connecting consumers with home service professionals in the United States and internationally. Its HomeAdvisor digital marketplace service connects consumers with service professionals for home repair, maintenance, and improvement projects; and provides consumers with tools and resources to find local, pre-screened, and customer-rated service professionals, as well as offers online appointment booking. The company also owns and operates Angie’s List, which connects consumers with service professionals for local services through an online directory of service professionals in various service categories; and provides consumers with valuable tools, services, and content, including verified reviews, to help them research, shop, and hire for local services. In addition, it operates Handy, a platform for connecting individuals looking for household services, primarily cleaning and handyman services; mHelpDesk and CraftJack service brands; and home services marketplaces under the Travaux, MyHammer, Werkspot, MyBuilder, HomeStars, Instapro, and MyHammer names. Further, the company is involved in home warranty and service business. As of December 31, 2019, it had a network of approximately 220,000 service professionals. The company was formerly known as Halo TopCo, Inc. and changed its name to ANGI Homeservices Inc. in May 2017. ANGI Homeservices Inc. was incorporated in 2017 and is headquartered in Denver, Colorado. ANGI Homeservices Inc. operates as a subsidiary of IAC/InterActiveCorp.
