03:17 PM EDT, 07/15/2024 (MT Newswires) -- FirstService ( FSV ) is expected to report revenue and adjusted EBITDA growth driven by its residential division and Brands businesses, RBC Capital Markets said in a note Monday.

"Growth wise, the acquisition of Roofing Corp of America in late 2023 continues to serve as the main driver," RBC said.

FirstService ( FSV ) is scheduled to report Q2 results Thursday.

RBC said its consolidated outlook projects 13% year-over-year revenue growth for FirstService ( FSV ) and adjusted earnings before interest, taxes, depreciation, and amortization growth of 7%.

Q2 adjusted EPS is expected to decrease 13% year over year to $1.27, "broadly in-line with consensus." Higher interest costs are expected to weigh-in on adjusted earnings per share, the investment firm said.

However, "with roughly 75% of debt subject to floating rates, interest expense headwinds on adj. EPS should inflect to tailwinds as rates move lower," RBC said. The brokerage expexts adjusted EPS growth to reaccelerate in the second half.

The firm maintained its outperform rating on FirstService ( FSV ) with a $187 price target.

Price: 163.12, Change: -0.07, Percent Change: -0.05