What Happened?
Shares of landscaping service company BrightView (NYSE: BV) fell 11.2% in the afternoon session after the company lowered its fiscal 2025 revenue guidance, citing macroeconomic pressures.
The commercial landscaping company now expects full-year revenue to be between $2.68 billion and $2.73 billion, a reduction from the previous forecast of $2.75 billion to $2.84 billion. BrightView attributed the downward revision to an uncertain economic environment, which has led to delays in development projects and reduced discretionary spending from clients.
Specifically, the company adjusted its outlook for its Maintenance Land Revenue, now expecting it to be between a 2% decline and flat, a significant change from the prior estimate of 1% to 3% growth.
Similarly, the forecast for Development Revenue Growth was cut from a gain of 3% to 6% to a range of a 2% decline to flat. Despite the weaker revenue outlook, BrightView reaffirmed its commitment to achieving record Adjusted EBITDA and margins for the fiscal year. The company also raised its guidance for adjusted free cash flow.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy BrightView? Access our full analysis report here, it’s free.
What The Market Is Telling Us
BrightView’s shares are somewhat volatile and have had 13 moves greater than 5% over the last year. But moves this big are rare even for BrightView and indicate this news significantly impacted the market’s perception of the business.
BrightView is down 4.8% since the beginning of the year, and at $15.09 per share, it is trading 19.4% below its 52-week high of $18.73 from November 2024. Investors who bought $1,000 worth of BrightView’s shares 5 years ago would now be looking at an investment worth $1,313.
Unless you’ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.
