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Is a Beat in Store for ABM Industries (ABM) in Q3 Earnings?

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ABM Industries Inc. (ABM - Free Report) is scheduled to report third-quarter fiscal 2021 results on Sep 8, after market close.

Let’s check out how things have shaped up for the announcement.

Q3 Expectations

The Zacks Consensus Estimate for the company’s third-quarter fiscal 2021 revenues is pegged at $1.52 billion, indicating 9.1% year-over-year growth. The expected upside can be attributed to huge demand for disinfection-related work orders and EnhancedClean services in the Business & Industry, Technology & Manufacturing, Education, and Technical Solutions segments.

The consensus mark for earnings stands at 80 cents per share, suggesting 6.7% growth year on year. The bottom line is likely to have 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. Additionally, the Technical Solutions segment gained from improved business mix and execution of higher margin projects.

What Our Model Says

Our proven model predicts an earnings beat for ABM Industries this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

ABM Industries has an Earnings ESP of +2.70% and a Zacks Rank #2.

Other Stocks to Consider

Here are a few other stocks from the broader Zacks Business Services sector that investors may consider, as our model shows that these too have the right combination of elements to beat on their respective earnings.

Green Dot (GDOT - Free Report) has an Earnings ESP of +9.29% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Envestnet (ENV - Free Report) has an Earnings ESP of +3.47% and a Zacks Rank #2.

Verisk (VRSK - Free Report) has an Earnings ESP of +1.69% and a Zacks Rank #3.