ABM Industries Slips 9% as Revenue Misses Despite Earnings Beat

ABM Industries (NYSE:ABM) is a key player in the facility solutions sector, offering a range of services that include janitorial, electrical, and mechanical services. The company competes with other facility management firms, striving to maintain its market position through consistent financial performance and strategic growth initiatives.

On June 6, 2025, ABM reported earnings per share (EPS) of $0.86, slightly below the anticipated $0.87. Despite this, the company exceeded revenue expectations, generating approximately $2.11 billion compared to the estimated $2.06 billion. This revenue increase of 4.6% was driven by organic growth, which contributed 3.8% to the rise, as highlighted by Scott Salmirs, President and CEO.

ABM's net income for the fiscal second quarter was $42.2 million, with earnings per diluted share at $0.67, a slight decrease from the previous year's $43.8 million and $0.69, respectively. However, adjusted net income rose to $54.1 million, with adjusted EPS increasing to $0.86 from $0.82 in the prior year. This improvement reflects the company's ability to manage its operations effectively.

The company's adjusted EBITDA also saw an increase, reaching $125.9 million from $121.0 million the previous year. ABM has reaffirmed its full-year adjusted EPS outlook, projecting it to be between $3.65 and $3.80. This projection indicates confidence in its ongoing performance and strategic initiatives, despite the slight downward revision in consensus earnings estimates by analysts.

ABM's financial ratios provide insight into its market valuation and financial health. With a P/E ratio of approximately 40, investors are willing to pay $40 for every $1 of earnings. The company's price-to-sales ratio is 0.38, and its enterprise value to sales ratio is 0.57, reflecting its valuation relative to sales. The debt-to-equity ratio of 0.93 and a current ratio of 1.52 suggest a balanced approach to leveraging debt and maintaining liquidity.

• ABM Industries (NYSE:ABM) is expected to report earnings of $0.87 per share with projected revenue of $2.06 billion.
• Revenue is anticipated to rise by 2.3% to $2.06 billion, indicating a positive trend in sales performance.
• A slight downward revision of 1% in the consensus EPS estimate over the past 30 days suggests a reevaluation by analysts.

ABM Industries (NYSE:ABM), a leading provider of facility solutions, including janitorial, electrical, and HVAC maintenance, is set to release its quarterly earnings for the fiscal second quarter of 2025 on Friday, June 6. Wall Street analysts estimate earnings per share (EPS) to be $0.87, with projected revenue of approximately $2.06 billion.

Analysts expect ABM to report earnings of $0.87 per share, consistent with the previous year. However, revenue is anticipated to rise by 2.3% to $2.06 billion compared to the same quarter last year. This growth in revenue suggests a positive trend in the company's sales performance, despite the unchanged EPS.

Over the past 30 days, there has been a slight downward revision of 1% in the consensus EPS estimate for the quarter. This adjustment indicates a reevaluation by analysts of their initial projections. Changes in earnings estimates are significant as they can influence investor reactions to the stock, as highlighted by empirical studies showing a strong correlation between trends in earnings estimate revisions and short-term price performance.

ABM's financial metrics provide insight into its valuation. The company has a price-to-earnings (P/E) ratio of approximately 40.81, indicating the price investors are willing to pay for each dollar of earnings. Its price-to-sales ratio stands at about 0.39, suggesting a relatively low valuation compared to its sales. The enterprise value to sales ratio is approximately 0.58, reflecting the company's total valuation in relation to its sales.

The company's debt-to-equity ratio is about 0.93, showing the proportion of debt used to finance its assets relative to equity. ABM also has a current ratio of approximately 1.52, indicating its ability to cover short-term liabilities with short-term assets. These financial metrics provide a comprehensive view of ABM's financial health and market valuation.

• ABM Industries Incorporated (NYSE:ABM) reported earnings per share (EPS) of $0.69, missing the estimated $0.78, but exceeded revenue expectations with $2.11 billion.
• The company's adjusted earnings per diluted share were $0.87, surpassing estimates and indicating an 11.54% earnings surprise.
• ABM has a low debt-to-equity ratio of approximately 0.085 and a current ratio of about 1.52, showcasing its strong financial health and market resilience.

ABM Industries Incorporated (NYSE:ABM) is a leading provider of facility solutions, offering services such as cleaning and maintenance for commercial buildings, hospitals, and airports. The company has a strong presence in the industry, consistently delivering solid financial performance. ABM competes with other facility management companies, striving to maintain its position through strategic growth and operational efficiency.

On March 12, 2025, ABM reported earnings per share (EPS) of $0.69, which fell short of the estimated $0.78. However, the company exceeded revenue expectations, reporting $2.11 billion compared to the estimated $2.09 billion. This revenue increase of 2.2% from the previous year was driven by organic growth, contributing 1.6% to the rise.

Despite the EPS miss, ABM's adjusted earnings per diluted share were $0.87, surpassing the Zacks Consensus Estimate of $0.78. This represents an 11.54% earnings surprise, as highlighted by the company's Q1 2025 earnings conference call. Adjusted net income rose to $55.3 million, up from $54.8 million in the prior year, reflecting the company's ability to manage costs effectively.

ABM's financial health is further supported by its low debt-to-equity ratio of approximately 0.085, indicating a conservative approach to leveraging. The company's current ratio of about 1.52 suggests it can comfortably cover short-term liabilities with its short-term assets. These metrics highlight ABM's strong financial position and ability to navigate market challenges.

Looking ahead, ABM has adjusted its fiscal 2025 earnings outlook, raising the lower end of its adjusted EPS projection by $0.05. The company now anticipates a full-year adjusted EPS ranging from $3.65 to $3.80. This optimistic outlook is driven by positive trends in its Technical Solutions and Aviation sectors, alongside stable conditions in the Education sector.

ABM Industries (NYSE:ABM) delivered a mixed financial report for the first quarter, exceeding profit expectations but falling short on revenue, which sent its shares down around 9% intra-day today.

The facility solutions provider posted adjusted earnings per share of $0.87, outpacing analyst projections of $0.76. Despite this earnings beat, revenue came in at $2.1 billion, slightly below the consensus, even as it reflected a modest 2.2% year-over-year increase.

Net income dipped to $43.6 million, or $0.69 per diluted share, compared to $44.7 million, or $0.70 per share, a year earlier. Meanwhile, adjusted EBITDA improved to $120.6 million from $116.7 million in the prior-year period, signaling operational resilience.

Looking ahead, ABM slightly raised the lower end of its full-year earnings forecast, now expecting adjusted EPS in the range of $3.65 to $3.80, up from its previous guidance of $3.60 to $3.80. The company reaffirmed its adjusted EBITDA margin outlook of 6.3% to 6.5%, maintaining a cautious but steady approach amid shifting market conditions.

• ABM Industries Incorporated (NYSE:ABM) reported earnings per share (EPS) of $0.69, missing the estimated $0.78, but exceeded revenue expectations with $2.11 billion.
• The company's adjusted earnings per diluted share were $0.87, surpassing estimates and indicating an 11.54% earnings surprise.
• ABM has a low debt-to-equity ratio of approximately 0.085 and a current ratio of about 1.52, showcasing its strong financial health and market resilience.

ABM Industries Incorporated (NYSE:ABM) is a leading provider of facility solutions, offering services such as cleaning and maintenance for commercial buildings, hospitals, and airports. The company has a strong presence in the industry, consistently delivering solid financial performance. ABM competes with other facility management companies, striving to maintain its position through strategic growth and operational efficiency.

On March 12, 2025, ABM reported earnings per share (EPS) of $0.69, which fell short of the estimated $0.78. However, the company exceeded revenue expectations, reporting $2.11 billion compared to the estimated $2.09 billion. This revenue increase of 2.2% from the previous year was driven by organic growth, contributing 1.6% to the rise.

Despite the EPS miss, ABM's adjusted earnings per diluted share were $0.87, surpassing the Zacks Consensus Estimate of $0.78. This represents an 11.54% earnings surprise, as highlighted by the company's Q1 2025 earnings conference call. Adjusted net income rose to $55.3 million, up from $54.8 million in the prior year, reflecting the company's ability to manage costs effectively.

ABM's financial health is further supported by its low debt-to-equity ratio of approximately 0.085, indicating a conservative approach to leveraging. The company's current ratio of about 1.52 suggests it can comfortably cover short-term liabilities with its short-term assets. These metrics highlight ABM's strong financial position and ability to navigate market challenges.

Looking ahead, ABM has adjusted its fiscal 2025 earnings outlook, raising the lower end of its adjusted EPS projection by $0.05. The company now anticipates a full-year adjusted EPS ranging from $3.65 to $3.80. This optimistic outlook is driven by positive trends in its Technical Solutions and Aviation sectors, alongside stable conditions in the Education sector.

• ABM Industries (NYSE:ABM) reported a Q4 EPS of $0.90, beating estimates and showcasing operational efficiency despite a year-over-year decline.
• The company's Q4 revenue reached $2.18 billion, indicating robust demand for its facility solutions and effective business strategies.
• ABM's solid financial health is evidenced by a low debt-to-equity ratio of 0.08 and a reasonable valuation with a price-to-sales ratio of 0.39.

ABM Industries (NYSE:ABM) is a leading provider of facility solutions, offering services such as janitorial, electrical, and HVAC maintenance. The company operates in a competitive market, with rivals like Aramark and Sodexo. ABM's recent financial performance highlights its ability to exceed market expectations, showcasing its resilience and strategic execution.

On December 18, 2024, ABM reported earnings per share (EPS) of $0.90 for the fourth quarter, surpassing the Zacks Consensus Estimate of $0.86. This performance, however, marks a decline from the $1.01 EPS reported in the same quarter last year. Despite this year-over-year decrease, ABM's ability to exceed estimates indicates strong operational management.

ABM's revenue for the quarter reached approximately $2.18 billion, exceeding the estimated $2.08 billion. This achievement reflects a robust demand for its services and effective business strategies. The company's price-to-sales ratio of 0.39 suggests that the market values ABM at 39 cents for every dollar of sales, indicating a reasonable valuation relative to its revenue.

The company's financial health is further supported by a low debt-to-equity ratio of 0.08, indicating a conservative approach to leveraging. ABM's current ratio of 1.33 demonstrates its ability to cover short-term liabilities, ensuring liquidity and financial stability. These metrics highlight ABM's solid financial foundation and prudent management practices.

ABM's enterprise value to operating cash flow ratio of 14.73 and earnings yield of 2.50% provide insights into its valuation and return on investment. These figures suggest that while the company is valued at a premium, it offers a modest return, reflecting investor confidence in its long-term growth prospects.