ABM Industries Earnings: Everything You Must Know Now

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.

Markets are at 5-year highs! Discover the best stocks to own. Click here for our fresh Feature Stock Pick now!

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)…

Revenue decreased 0.72% from $1.18 billion in the previous quarter. EPS were the same at $0.36 as the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.42 to a profit $0.43. For the current year, the average estimate has moved up from a profit of $1.36 to a profit of $1.40 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

More Articles About:   , ,  

More from The Cheat Sheet