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ABM Industries Shares Barely Move After Reporting Q3 Earnings Beat
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ABM Industries Incorporated (ABM - Free Report) reported impressive third-quarter fiscal 2024 results, wherein earnings per share (EPS) and revenues beat the Zacks Consensus Estimate.
The stock price has not witnessed any significant impact of the earnings beat since the company released results on Sept. 6, 2024.
ABM’s EPS (excluding 86 cents from non-recurring items) was 94 cents, which outpaced the Zacks Consensus Estimate by 10.6% and gained 19% on a year-over-year basis. Total revenues of $2.1 billion surpassed the consensus mark by 2.7% and increased 3.3% from the year-ago quarter.
The company’s shares have gained 20% in the past six months, outperforming the 11.1% rally of the industry it belongs to and the 6.7% increase of the Zacks S&P 500.
ABM Industries Incorporated Price and EPS Surprise
Technical Solutions gained 24.9% from third-quarter fiscal 2023 to $209.7 million. The metric outpaced our estimate of $173.4 million.The acquisition of Quality Uptime Services and strong microgrid project activity drove this segment’s revenues.
The Aviation segment’s revenues increased 12.8% from the year-ago quarter to $268.4 million and beat our estimate of $242.4 million. This segment has grown on the back of healthy travel markets and business wins from both the airport and airline sides of the business.
The Education segment’s revenues amounted to $228.3 million, a 4.2% rise from the year-ago quarter. It surpassed our estimate of $220.3 million. Increased activity on several cost-plus accounts led to this segment’s revenue growth.
Revenues from the Manufacturing & Distribution segment decreased 1.2% to $377.1 million, missing our estimate of $380.5 million. The decline in this segment’s revenues was caused by the expected rebalancing of work by a large e-commerce customer.
The Business & Industry segment’s revenues declined 1.1% on a year-over-year basis to $1 billion and met our estimate.
Profitability Performance of ABM Industries
Adjusted EBITDA was $128.1 million, up 2% from the year-ago quarter. The adjusted EBITDA margin was 6.4%, flat with third-quarter fiscal 2023.
ABM’s Balance Sheet & Cash Flow
ABM Industries exited third-quarter fiscal 2024 with cash and cash equivalents of $86.3 million compared with $60.7 million at the end of the preceding quarter. The long-term debt (net) was $1.3 billion compared with $1.2 billion at the end of the second quarter fiscal of 2024. Net cash generated by operating activities was $79.3 million for the quarter. The free cash flow amounted to $64.1 million.
ABM Industries FY24 Guidance
For fiscal 2024, ABM Industries raised its EPS guidance. The company expects an adjusted EPS of $3.48-$3.55 compared with the $3.40-$3.50 mentioned at the end of the preceding quarter. The Zacks Consensus Estimate for earnings of $3.46 is lower than the company’s raised guided range.
S&P Global Inc. (SPGI - Free Report) reported impressive second-quarter results.
SPGI’s adjusted EPS (excluding 82 cents from non-recurring items) of $4.04 surpassed the Zacks Consensus Estimate by 10.1% and increased 29.5% year over year. Revenues of $3.5 billion beat the consensus estimate by 3.4% and improved 14.5% year over year.
FCN’s quarterly earnings per share of $2.34 surpassed the Zacks Consensus Estimate by 19.4% and increased 33.7% year over year. Total revenues of $949.2 million beat the consensus mark by 2.1% and increased 9.8% from the year-ago quarter.
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ABM Industries Shares Barely Move After Reporting Q3 Earnings Beat
ABM Industries Incorporated (ABM - Free Report) reported impressive third-quarter fiscal 2024 results, wherein earnings per share (EPS) and revenues beat the Zacks Consensus Estimate.
The stock price has not witnessed any significant impact of the earnings beat since the company released results on Sept. 6, 2024.
ABM’s EPS (excluding 86 cents from non-recurring items) was 94 cents, which outpaced the Zacks Consensus Estimate by 10.6% and gained 19% on a year-over-year basis. Total revenues of $2.1 billion surpassed the consensus mark by 2.7% and increased 3.3% from the year-ago quarter.
The company’s shares have gained 20% in the past six months, outperforming the 11.1% rally of the industry it belongs to and the 6.7% increase of the Zacks S&P 500.
ABM Industries Incorporated Price and EPS Surprise
ABM Industries Incorporated price-eps-surprise | ABM Industries Incorporated Quote
ABM’s Segmental Revenues
Technical Solutions gained 24.9% from third-quarter fiscal 2023 to $209.7 million. The metric outpaced our estimate of $173.4 million.The acquisition of Quality Uptime Services and strong microgrid project activity drove this segment’s revenues.
The Aviation segment’s revenues increased 12.8% from the year-ago quarter to $268.4 million and beat our estimate of $242.4 million. This segment has grown on the back of healthy travel markets and business wins from both the airport and airline sides of the business.
The Education segment’s revenues amounted to $228.3 million, a 4.2% rise from the year-ago quarter. It surpassed our estimate of $220.3 million. Increased activity on several cost-plus accounts led to this segment’s revenue growth.
Revenues from the Manufacturing & Distribution segment decreased 1.2% to $377.1 million, missing our estimate of $380.5 million. The decline in this segment’s revenues was caused by the expected rebalancing of work by a large e-commerce customer.
The Business & Industry segment’s revenues declined 1.1% on a year-over-year basis to $1 billion and met our estimate.
Profitability Performance of ABM Industries
Adjusted EBITDA was $128.1 million, up 2% from the year-ago quarter. The adjusted EBITDA margin was 6.4%, flat with third-quarter fiscal 2023.
ABM’s Balance Sheet & Cash Flow
ABM Industries exited third-quarter fiscal 2024 with cash and cash equivalents of $86.3 million compared with $60.7 million at the end of the preceding quarter. The long-term debt (net) was $1.3 billion compared with $1.2 billion at the end of the second quarter fiscal of 2024. Net cash generated by operating activities was $79.3 million for the quarter. The free cash flow amounted to $64.1 million.
ABM Industries FY24 Guidance
For fiscal 2024, ABM Industries raised its EPS guidance. The company expects an adjusted EPS of $3.48-$3.55 compared with the $3.40-$3.50 mentioned at the end of the preceding quarter. The Zacks Consensus Estimate for earnings of $3.46 is lower than the company’s raised guided range.
ABM currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Snapshot of Peers
S&P Global Inc. (SPGI - Free Report) reported impressive second-quarter results.
SPGI’s adjusted EPS (excluding 82 cents from non-recurring items) of $4.04 surpassed the Zacks Consensus Estimate by 10.1% and increased 29.5% year over year. Revenues of $3.5 billion beat the consensus estimate by 3.4% and improved 14.5% year over year.
FTI Consulting, Inc. (FCN - Free Report) posted impressive second-quarter 2024 results.
FCN’s quarterly earnings per share of $2.34 surpassed the Zacks Consensus Estimate by 19.4% and increased 33.7% year over year. Total revenues of $949.2 million beat the consensus mark by 2.1% and increased 9.8% from the year-ago quarter.