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ABM Industries (ABM) Q1 Earnings Beat Estimates, Revenues Miss
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ABM Industries Inc. (ABM - Free Report) reported mixed first-quarter fiscal 2021 results, wherein earnings beat the Zacks Consensus Estimate while revenues missed the same.
Adjusted earnings from continuing operations came in at $1.01 per share, beating the consensus mark by 65.6% and improving more than 100% year over year. The bottom line benefited from higher margin improvement in Work Orders and EnhancedClean services as clients continue to incorporate disinfection into their operations. Persistent management of direct labor to align with the operating environment is also an added positive.
Total revenues of $1.49 billion missed the consensus estimate by 0.5% and declined 7.5% from the year-ago quarter. The year-over-year decline was due to coronavirus-related client disruptions, such as facility access limitations and service-scope changes within the company's Aviation and Technical Solutions segments. These were, however, partially offset by huge demand for disinfection-related work orders and EnhancedClean services in the Business & Industry, and Technology & Manufacturing segments.
Over the past year, shares of ABM Industries have gained 48.3% compared with 24.9% surge of the industry it belongs to.
Let’s check out the numbers in detail.
Segment-wise Revenues
Business & Industry revenues decreased 1.4% year over year to $809.4 million. Aviation revenues decreased 40% year over year to $143.1 million. Technical Solutions revenues decreased 20.2% year over year to $113.4 million.
Technology & Manufacturing revenues improved 6.5% year over year to $249.2 million. Education revenues of $209.4 million increased 0.7% from the prior-year quarter.
Operating Results
Adjusted EBITDA came in at $123.7 million, up 79.9% from the prior-year quarter. Adjusted EBITDA margin rose to 8.3% from 4.3% in the year-ago quarter.
Adjusted income from continuing operations was $68.3 million, up more than 100% year over year. Operating expenses decreased 12.9% from the year-ago quarter to $1.25 billion. Selling, general and administrative expenses increased 4.2% from the year-ago quarter to $122.6 million.
ABM Industries Incorporated Price, Consensus and EPS Surprise
ABM Industries exited first-quarter fiscal 2021 with cash and cash equivalents of $378.3 million compared with $394.2 million at the end of the prior quarter. Long-term debt was $573.8 million compared with $603 million at the end of the prior quarter.
Net cash generated from operating activities totaled $45.3 million in the reported quarter. Free-cash flow came in at $38.7 million.
Dividend Payout
ABM Industries paid out a quarterly cash dividend of 19 cents per share, leading to $12.7 million of total dividend payout in the reported quarter. Additionally, the company’s board of directors announced a quarterly cash dividend of 19 cents, payable on May 3, 2021, to its shareholders of record as of Apr 1, 2021. This marked the 220th consecutive quarterly cash dividend declared by the company.
Fiscal 2021 Guidance
For fiscal 2021, ABM Industries expects adjusted income from continuing operations in the range of $3.00 - $3.25 per share. The Zacks Consensus Estimate of $2.53 lies below the guidance.
Currently, ABM Industries carries a Zacks Rank #3 (Hold).
Rollins’(ROL - Free Report) fourth-quarter 2020 adjusted earnings of 13 cents per share came ahead of the consensus estimate as well as the year-ago figure by 18.2%. Revenues of $536.3 million beat the consensus mark by 1.7% and improved 6% year over year.
IHS Markit’s fourth-quarter fiscal 2020 adjusted earnings per share of 72 cents beat the Zacks Consensus Estimate by 7.5% and increased 11% on a year-over-year basis. Total revenues came in at $1.11 billion, marginally missing the consensus mark and declining 1% from the year-ago quarter on a reported basis.
Automatic Data Processing’s (ADP - Free Report) second-quarter fiscal 2021 adjusted earnings per share of $1.52 beat the consensus mark by 17.8% and were flat year over year. Total revenues of $3.69 billion beat the consensus mark by 3.2% and improved 0.7% year over year.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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ABM Industries (ABM) Q1 Earnings Beat Estimates, Revenues Miss
ABM Industries Inc. (ABM - Free Report) reported mixed first-quarter fiscal 2021 results, wherein earnings beat the Zacks Consensus Estimate while revenues missed the same.
Adjusted earnings from continuing operations came in at $1.01 per share, beating the consensus mark by 65.6% and improving more than 100% year over year. The bottom line benefited from higher margin improvement in Work Orders and EnhancedClean services as clients continue to incorporate disinfection into their operations. Persistent management of direct labor to align with the operating environment is also an added positive.
Total revenues of $1.49 billion missed the consensus estimate by 0.5% and declined 7.5% from the year-ago quarter. The year-over-year decline was due to coronavirus-related client disruptions, such as facility access limitations and service-scope changes within the company's Aviation and Technical Solutions segments. These were, however, partially offset by huge demand for disinfection-related work orders and EnhancedClean services in the Business & Industry, and Technology & Manufacturing segments.
Over the past year, shares of ABM Industries have gained 48.3% compared with 24.9% surge of the industry it belongs to.
Let’s check out the numbers in detail.
Segment-wise Revenues
Business & Industry revenues decreased 1.4% year over year to $809.4 million. Aviation revenues decreased 40% year over year to $143.1 million. Technical Solutions revenues decreased 20.2% year over year to $113.4 million.
Technology & Manufacturing revenues improved 6.5% year over year to $249.2 million. Education revenues of $209.4 million increased 0.7% from the prior-year quarter.
Operating Results
Adjusted EBITDA came in at $123.7 million, up 79.9% from the prior-year quarter. Adjusted EBITDA margin rose to 8.3% from 4.3% in the year-ago quarter.
Adjusted income from continuing operations was $68.3 million, up more than 100% year over year. Operating expenses decreased 12.9% from the year-ago quarter to $1.25 billion. Selling, general and administrative expenses increased 4.2% from the year-ago quarter to $122.6 million.
ABM Industries Incorporated Price, Consensus and EPS Surprise
ABM Industries Incorporated price-consensus-eps-surprise-chart | ABM Industries Incorporated Quote
Balance Sheet & Cash Flow
ABM Industries exited first-quarter fiscal 2021 with cash and cash equivalents of $378.3 million compared with $394.2 million at the end of the prior quarter. Long-term debt was $573.8 million compared with $603 million at the end of the prior quarter.
Net cash generated from operating activities totaled $45.3 million in the reported quarter. Free-cash flow came in at $38.7 million.
Dividend Payout
ABM Industries paid out a quarterly cash dividend of 19 cents per share, leading to $12.7 million of total dividend payout in the reported quarter. Additionally, the company’s board of directors announced a quarterly cash dividend of 19 cents, payable on May 3, 2021, to its shareholders of record as of Apr 1, 2021. This marked the 220th consecutive quarterly cash dividend declared by the company.
Fiscal 2021 Guidance
For fiscal 2021, ABM Industries expects adjusted income from continuing operations in the range of $3.00 - $3.25 per share. The Zacks Consensus Estimate of $2.53 lies below the guidance.
Currently, ABM Industries carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Business Services Companies
Rollins’(ROL - Free Report) fourth-quarter 2020 adjusted earnings of 13 cents per share came ahead of the consensus estimate as well as the year-ago figure by 18.2%. Revenues of $536.3 million beat the consensus mark by 1.7% and improved 6% year over year.
IHS Markit’s fourth-quarter fiscal 2020 adjusted earnings per share of 72 cents beat the Zacks Consensus Estimate by 7.5% and increased 11% on a year-over-year basis. Total revenues came in at $1.11 billion, marginally missing the consensus mark and declining 1% from the year-ago quarter on a reported basis.
Automatic Data Processing’s (ADP - Free Report) second-quarter fiscal 2021 adjusted earnings per share of $1.52 beat the consensus mark by 17.8% and were flat year over year. Total revenues of $3.69 billion beat the consensus mark by 3.2% and improved 0.7% year over year.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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