ABM Industries Inc. (NYSE:ABM) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.
ABM Industries Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 2.7% to $0.36 in the quarter versus EPS of $0.37 in the year-earlier quarter.
Revenue: Rose 11.01% to $1.17 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: ABM Industries Inc. reported adjusted EPS income of $0.36 per share. By that measure, the company missed the mean analyst estimate of $0.39. It missed the average revenue estimate of $1.2 billion.
Quoting Management: “We are very pleased with our second quarter performance, which highlights our success in driving top and bottom line growth,” said ABM’s president and chief executive officer Henrik Slipsager. “Our 11% increase in revenue was due to the strength of our acquired businesses and organic growth from our Janitorial, Facility Services and Security segments. I am encouraged by the fact Janitorial surpassed 2% organic growth and Facility Services achieved another quarter above 8%. Sales in the Building & Energy Solutions segment increased 8.4% due to acquisitions. With recent project wins, a strong sales pipeline, and an improving economy, the Company is well positioned for sustained growth. We were recently selected as the official cleaning services partner of The O2 in London, one of the world’s largest and most notable entertainment destinations. In addition, during the second quarter, we entered into a joint venture with Building Energy, an Italian-based independent power producer, significantly expanding our solar and distributed energy capabilities in large-scale commercial and utility-scale solar power markets.”
Key Stats (on next page)…