BrightView Stock Slips After Mixed Q4 Results, Downbeat Q1 Revenue Outlook

BrightView Holdings Inc BV reported fourth-quarter revenue growth of 10.8% year-over-year to $673.7 million, beating the consensus of $654.27 million.
Maintenance Services revenue $504.5 million (+14.5% Y/Y) and Development Services revenue $170.2 million (+1.1% Y/Y).
Adjusted EBITDA was $89.5 million (-0.6% Y/Y), and margin contracted by 150 bps to 13.3%.
Adjusted EPS improved to $0.38 from $0.37 last year, missing estimates of $0.41.
The gross margin declined slightly to 26.7% from 26.9% last year.
The operating income increased to $33.1 million from $10 million a year ago, margin expanded by 327 bps to 4.9%.
BrightView generated cash from operating activities for the year of $148.4 million, compared to $245.1 million a year ago. Free cash flow of $96.7 million.
1Q22 Outlook: BrightView expects total revenue of $570 million - $600 million (consensus $601.15 million) and adjusted EBITDA of $44 million - $52 million.
It expects continued solid momentum in the Maintenance Services Segment; headwinds in the Development Services Segment.
Price Action: BV shares are trading lower by 10.6% at $14.915 on the last check Wednesday.

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