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ABM Industries (ABM) to Offer Custodial Services to CCSD

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ABM Industries Incorporated (ABM - Free Report) recently partnered with Cherokee County School District (CCSD) to offer custodial services to CCSD’s 42 schools and ancillary facilities.

CCSD is Georgia’s 9th largest school system and the recipient of many prestigious state and national recognitions and accreditations in the United States.

The ABM Education team is engaged in providing day and night custodial services for the school district’s 5.1 million-square-feet-of-space, which is used by nearly 4,800 teachers and staff and 42,000 students throughout the year.

The collaboration with CCSD expands ABM Industries’ footprint in Georgia.

Trey Brock, senior vice president of operations, ABM Education, stated, “ABM is excited to partner with CCSD to positively impact the learning environment by ensuring clean, attractive and healthy facilities. Our goal is to build value for CCSD, while enabling teachers and staff to concentrate on what they do best — educate young minds.”

Shares of ABM Industries have declined 9.5% in the past year compared with 1.1% fall of the industry it belongs to.

 

Our Take

The partnership is likely to help ABM Industries boost its Education segment, which delivers janitorial, custodial, landscaping and grounds, facilities engineering and parking services for public school districts, private schools, colleges and universities.

Performance of the segment was strong in the last reported quarter with revenues improving 30.8% year over year. The segment also recorded $51.6 million revenues from the GCA acquisition in fourth-quarter fiscal 2018. With 13% contribution to ABM Industries’ revenues in fourth-quarter fiscal 2018, the segment emerged as the third-largest contributor.

Zacks Rank & Stocks to Consider

ABM Industries carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

A few better-ranked stocks in the broader Zacks Business Services sector include Booz Allen Hamilton (BAH - Free Report) , Republic Services (RSG - Free Report) and Waste Connections (WCN - Free Report) . While Booz Allen Hamilton sports a Zacks Rank #1, Republic Services and Waste Connections carry a Zacks Rank #2 (Buy).

Long-term expected EPS (three to five years) growth rate for Booz Allen Hamilton, Republic Services and Waste Connections is 14.4%, 10.7% and 11.7%, respectively.

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