ABM Selected by California Court

ABM Engineering, a subsidiary of ABM Industries Inc. (ABM - Analyst Report) has been chosen by California’s Courthouse for rendering its maintenance and management services. Earlier, these services comprising operations and maintenance, facility modifications, engineering services, and other related services, were managed by Administrative Office of the Courts (AOC). It is a four-year multi-million dollar contract, which expands ABM’s work with California Courthouse.

ABM will be one of the three service providers in California, selected by AOC through a meticulous procurement process commenced in November 2010. These service providers will look after several courthouses and other buildings within California’s judicial system. ABM is looking forward to this opportunity and promises to ensure smooth and efficient working of the courts.

ABM recently announced its second quarter results delivering an EPS of 26 cents compared with 16 cents in the year-ago quarter. The earnings increased mainly due to a $4.7 million after-tax increase in Divisional operating profit and $2.3 million after-tax benefit from lower labor expense. These benefits were partially offset by higher tax expense and fuel costs.

During the quarter, net sales increased approximately 24% year over year to $1.06 billion, falling behind the Zacks Consensus Estimate of $1.07 billion. Revenues in the quarter mainly improved due to a $200 million contribution from the acquisitions made in 2010. We currently have a Zacks #3 Rank (short-term Hold recommendation) on the stock.

ABM Industries operates through its subsidiaries and is the leading provider of facility services in the United States. The company provides janitorial, facility, engineering, parking and security services to thousands of commercial, industrial, institutional and retail facilities across the United States, Puerto Rico and British Columbia, Canada.

The company’s business services include ABM Janitorial Services, ABM Facility Services, ABM Engineering Services, Ampco System Parking and ABM Security Services. It competes with privately-held ARAMARK Corporation, Central Parking Corporation and UNICCO Service Company. We currently have a Zacks #3 Rank (short-term Hold recommendation) on the stock.

Read the full analyst report on ABM