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The company has an impressive earnings surprise history with earnings surpassing the Zacks Consensus Estimate in three of the four trailing quarters and matching on one. The average earnings surprise is 2.6%.
Expectations From ABM in Q3
The Zacks Consensus Estimate for the top line is currently pegged at $2.02 billion, up 3% from the year-ago actual figure. The expected uptick can be due to the successful price escalations and organic growth.
Adjusted EBITDA for the to-be-reported quarter is expected to be $128.3 million, reflecting growth of 2.3%. We expect adjusted EBITDA margin to be 6.4%, in line with the year-ago reported figure.
ABM Industries Incorporated Price and EPS Surprise
The consensus estimate for the bottom line in the to-be-reported quarter stands at 88 cents per share which indicates a decline of 6.4% from the year-ago figure. The likely decline can be due to the challenging labor markets and slow recovery of office occupancy for commercial real estate.
Segmental Expectations
Our estimate for the Business and Industry segment’s revenues in the to-be-reported quarter is pegged at $1.02 billion, indicating a 1.4% increase year over year.Such decrease can be correlated to the likely slow recovery of office occupancy.
Our estimate for the Aviation segment’s revenues in the to-be-reported quarter is pegged at $217 million, indicating a 6.6% increase year over year. We expect the segment to have been benefited from the overall travel market growth and the signing of multimillion-dollar with two major UK airports.
We expect Manufacturing and Distribution segment’s revenues in the to-be-reported quarter to grow 4.5%. Our estimate for revenues is currently pegged at $374.4 million. The segment is likely to have been benefited from expanded markets and continued demand.
Our estimate for the Education segment’s revenues in the to-be-reported quarter is pegged at $210.6 million, indicating a 1.5% increase year over year owing to the expected strength in the business pipeline. Revenues from the Technical Solutions segment are likely to have increased 21.4% from the year-ago reported figure, our estimate of which is currently pegged at $192.4 million. We expect the uptick to likely have been due to a significant contract win with a school district in Western Pennsylvania and a strong demand for EV charging infrastructure.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for ABM this time around. The combination of a positive Earnings ESPand 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 before they’re reported with our Earnings ESP Filter.
Here are a few stocks from the broader Business Services sector, which have performed well in their recent earnings release:
Automatic Data (ADP - Free Report) reported better-than-expected fourth-quarter fiscal 2023 results. Adjusted earnings per share of $1.89 (excluding 1 cent from non-recurring items) beat the Zacks Consensus Estimate by 3.3% and grew 26% from the year-ago fiscal quarter’s figure. Total revenues of $4.47 billion beat the consensus estimate by 1.8% and improved 8.5% from the year-ago fiscal quarter’s reading on a reported basis and 9% on an organic constant-currency basis.
TransUnion (TRU - Free Report) reported impressive second-quarter 2023 results wherein earnings and revenues beat the Zacks Consensus Estimate. Quarterly adjusted earnings of 86 cents per share (adjusting 58 cents from non-recurring items) surpassed the consensus mark by 3.6% but decreased 12.2% year over year. Total revenues of $968 million beat the consensus mark by 1% and increased 2.1% year over year on a reported basis. Revenues were up 3% on a constant-currency basis, mainly driven by strength in the international markets.
Gartner (IT - Free Report) reported better-than-expected second-quarter 2023 results. Adjusted earnings per share (excluding 37 cents from non-recurring items) of $2.85 beat the Zacks Consensus Estimate by 14.9% but matched the year-ago reported figure. Revenues of $1.5 billion beat the consensus estimate by 1% and improved 9.2% year over year on a reported basis and 10% on a foreign-currency-neutral basis. Total contract value was $4.6 billion, up 8.9% year over year on a foreign-currency-neutral basis.
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ABM Industries (ABM) to Report Q3 Earnings: What's in Store?
ABM Industries Incorporated (ABM - Free Report) is scheduled to release its third-quarter fiscal 2023 results on Sep 7, before market open.
The company has an impressive earnings surprise history with earnings surpassing the Zacks Consensus Estimate in three of the four trailing quarters and matching on one. The average earnings surprise is 2.6%.
Expectations From ABM in Q3
The Zacks Consensus Estimate for the top line is currently pegged at $2.02 billion, up 3% from the year-ago actual figure. The expected uptick can be due to the successful price escalations and organic growth.
Adjusted EBITDA for the to-be-reported quarter is expected to be $128.3 million, reflecting growth of 2.3%. We expect adjusted EBITDA margin to be 6.4%, in line with the year-ago reported figure.
ABM Industries Incorporated Price and EPS Surprise
ABM Industries Incorporated price-eps-surprise | ABM Industries Incorporated Quote
The consensus estimate for the bottom line in the to-be-reported quarter stands at 88 cents per share which indicates a decline of 6.4% from the year-ago figure. The likely decline can be due to the challenging labor markets and slow recovery of office occupancy for commercial real estate.
Segmental Expectations
Our estimate for the Business and Industry segment’s revenues in the to-be-reported quarter is pegged at $1.02 billion, indicating a 1.4% increase year over year.Such decrease can be correlated to the likely slow recovery of office occupancy.
Our estimate for the Aviation segment’s revenues in the to-be-reported quarter is pegged at $217 million, indicating a 6.6% increase year over year. We expect the segment to have been benefited from the overall travel market growth and the signing of multimillion-dollar with two major UK airports.
We expect Manufacturing and Distribution segment’s revenues in the to-be-reported quarter to grow 4.5%. Our estimate for revenues is currently pegged at $374.4 million. The segment is likely to have been benefited from expanded markets and continued demand.
Our estimate for the Education segment’s revenues in the to-be-reported quarter is pegged at $210.6 million, indicating a 1.5% increase year over year owing to the expected strength in the business pipeline. Revenues from the Technical Solutions segment are likely to have increased 21.4% from the year-ago reported figure, our estimate of which is currently pegged at $192.4 million. We expect the uptick to likely have been due to a significant contract win with a school district in Western Pennsylvania and a strong demand for EV charging infrastructure.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for ABM this time around. The combination of a positive Earnings ESPand 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 before they’re reported with our Earnings ESP Filter.
ABM has an Earnings ESP of 0.00% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings Snapshots
Here are a few stocks from the broader Business Services sector, which have performed well in their recent earnings release:
Automatic Data (ADP - Free Report) reported better-than-expected fourth-quarter fiscal 2023 results. Adjusted earnings per share of $1.89 (excluding 1 cent from non-recurring items) beat the Zacks Consensus Estimate by 3.3% and grew 26% from the year-ago fiscal quarter’s figure. Total revenues of $4.47 billion beat the consensus estimate by 1.8% and improved 8.5% from the year-ago fiscal quarter’s reading on a reported basis and 9% on an organic constant-currency basis.
TransUnion (TRU - Free Report) reported impressive second-quarter 2023 results wherein earnings and revenues beat the Zacks Consensus Estimate. Quarterly adjusted earnings of 86 cents per share (adjusting 58 cents from non-recurring items) surpassed the consensus mark by 3.6% but decreased 12.2% year over year. Total revenues of $968 million beat the consensus mark by 1% and increased 2.1% year over year on a reported basis. Revenues were up 3% on a constant-currency basis, mainly driven by strength in the international markets.
Gartner (IT - Free Report) reported better-than-expected second-quarter 2023 results. Adjusted earnings per share (excluding 37 cents from non-recurring items) of $2.85 beat the Zacks Consensus Estimate by 14.9% but matched the year-ago reported figure. Revenues of $1.5 billion beat the consensus estimate by 1% and improved 9.2% year over year on a reported basis and 10% on a foreign-currency-neutral basis. Total contract value was $4.6 billion, up 8.9% year over year on a foreign-currency-neutral basis.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.