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What's in Store for ABM Industries (ABM) in Q4 Earnings?

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ABM Industries Inc. (ABM - Free Report) is scheduled to report fourth-quarter fiscal 2020 results on Dec 16, after market close.

Let’s check out how things have shaped up for the announcement.

Q4 Expectations

The Zacks Consensus Estimate for the company’s fourth-quarter fiscal 2020 revenues is pegged at $1.45 billion, indicating 12.3% year-over-year decline. The expected downside can be attributed to coronavirus-related client disruptions, such as facility closures and service-scope changes within the majority of its business segments. These, however, were likely to have been partially offset by huge demand for COVID-19-related work orders in the Business & Industry and Technology & Manufacturing segments.

The consensus mark for earnings stands at 72 cents per share, suggesting growth of 9.1% year on year. The bottom line is likely to have benefited from higher margin improvement in Work Orders and persistent management of direct labor to align with the operating environment. Additionally, various temporary cost-cutting measures such as salary reductions and furlough actions, undertaken by the company have helped it reduce other expenses.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for ABM Industries this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

ABM Industries has an Earnings ESP of 0.00% and a Zacks Rank #3.

Stocks to Consider

Here are a few stocks from the broader Zacks Business Services sector that investors may consider as our model shows that these have the right combination of elements to beat on earnings in their upcoming release.

FLEETCOR Technologies has an Earnings ESP of +3.03% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Equifax (EFX - Free Report) has an Earnings ESP of +1.67% and a Zacks Rank #3.

Accenture (ACN - Free Report) has an Earnings ESP of +1.20% and a Zacks Rank #3.

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