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ABM Industries (ABM) Q4 Earnings Meet Estimates, Up Y/Y
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ABM Industries Inc. (ABM - Free Report) fourth-quarter fiscal 2022 earnings met the Zacks Consensus Estimate while revenues beat the same.
Adjusted earnings (excluding 16 cents from non-recurring items) from continuing operations came in at 89 cents per share and increased 4.7% from last fiscal year’s quarterly figure. The bottom line benefited from higher segment earnings on significantly higher volume and lower acquisition and integration costs, partially offset by higher interest expense and ELEVATE transformation costs.
Total revenues of $2.01 billion surpassed the consensus estimate by 1.6% and improved 18.6% from last fiscal year’s quarterly figure. The upside was backed by solid demand across ABM’s Business & Industry, Aviation, Manufacturing & Distribution, Education and Technical Solutions segments, especially in its eMobility business. Quarterly revenue growth included 6% organic growth and a 13% upside from acquisitions.
So far this year, shares of ABM Industries have gained 11.6% compared with 14.7% rise of the industry it belongs to.
Image Source: Zacks Investment Research
Segment-Wise Revenues
Business & Industry segment’s revenues increased 27.5% from last fiscal year’s quarterly figure to $1.03 billion. Revenues from Manufacturing & Distribution rose 8.7% from last fiscal year’s quarterly figure to $371.2 million. Aviation’s revenues increased 9.1% from last fiscal year’s quarterly figure to $214.4 million. Technical Solutions’ revenues increased 21.5% from last fiscal year’s quarterly figure to $179.6 million. Education segment’s revenues of $217.1 million increased 6.9% from the prior-year fiscal quarter’s level.
Operating Results
Adjusted EBITDA came in at $130.7 million compared with $111.2 million in the year-ago quarter. Adjusted EBITDA margin was flat at 6.8%.
ABM Industries Incorporated Price, Consensus and EPS Surprise
Operating expenses increased 21.2% from the year-ago figure to $1.75 billion. Selling, general and administrative expenses declined 11.7% from the year-ago level to $159.7 million.
Balance Sheet & Cash Flow
ABM Industries exited fourth-quarter fiscal 2022 with cash and cash equivalents of $73 million compared with $63.9 million at the end of the prior fiscal quarter. Long-term debt was $1.1 billion compared with $1 billion at the end of the prior fiscal quarter.
Net cash provided by operating activities totaled $117.1 million for the reported quarter. Free cash flow came in at $104.1 million.
During the reported quarter, ABM repurchased 0.6 million shares at an average price of $39.69, for a total cost of $23 million.
During the reported quarter, ABM paid out dividend worth $12.8 million.
Fiscal 2023 Guidance
For fiscal 2023, ABM Industries expects adjusted EPS to be in the range of $3.40-$3.60. The midpoint of the guided range ($3.50 per share) lies below the Zacks Consensus Estimate of $3.66 per share. Adjusted EBITDA margin is anticipated to be in the range of 6.4-6.8%. Interest expense is expected to be in the range of $71-$74 million for fiscal 2023.
Omnicom Group Inc. (OMC - Free Report) reported impressive third-quarter 2022 results, wherein both earnings and revenues surpassed the respective Zacks Consensus Estimate.
Earnings of $1.77 per share beat the Zacks Consensus Estimate by 7.9% and increased 7.3% year over year, driven by a solid margin performance. Total revenues of $3.4 billion surpassed the Zacks Consensus Estimate by 3% and increased slightly on a year-over-year basis.
Equifax Inc. (EFX - Free Report) reported stellar third-quarter 2022 results, wherein both earnings and revenues surpassed the respective Zacks Consensus Estimate.
Adjusted earnings (excluding 39 cents from non-recurring items) of $1.73 per share beat the Zacks Consensus Estimate by 5.5% but decreased 6.5% on a year-over-year basis. However, revenues of $1.24 billion beat the Zacks Consensus Estimate by 2.3% and improved 1.8% year over year on a reported basis and 4% on a local-currency basis.
The Interpublic Group of Companies, Inc. (IPG - Free Report) reported better-than-expected third-quarter 2022 results.
Adjusted earnings (excluding a penny from non-recurring items) of 63 cents per share beat the Zacks Consensus Estimate by 6.8%. The bottom line has been flat over the past year. Net revenues of $2.3 billion beat the consensus estimate by 0.3% but declined 9.7% on a year-over-year basis. Total revenues of $2.64 billion increased 3.8% year over year.
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ABM Industries (ABM) Q4 Earnings Meet Estimates, Up Y/Y
ABM Industries Inc. (ABM - Free Report) fourth-quarter fiscal 2022 earnings met the Zacks Consensus Estimate while revenues beat the same.
Adjusted earnings (excluding 16 cents from non-recurring items) from continuing operations came in at 89 cents per share and increased 4.7% from last fiscal year’s quarterly figure. The bottom line benefited from higher segment earnings on significantly higher volume and lower acquisition and integration costs, partially offset by higher interest expense and ELEVATE transformation costs.
Total revenues of $2.01 billion surpassed the consensus estimate by 1.6% and improved 18.6% from last fiscal year’s quarterly figure. The upside was backed by solid demand across ABM’s Business & Industry, Aviation, Manufacturing & Distribution, Education and Technical Solutions segments, especially in its eMobility business. Quarterly revenue growth included 6% organic growth and a 13% upside from acquisitions.
So far this year, shares of ABM Industries have gained 11.6% compared with 14.7% rise of the industry it belongs to.
Image Source: Zacks Investment Research
Segment-Wise Revenues
Business & Industry segment’s revenues increased 27.5% from last fiscal year’s quarterly figure to $1.03 billion. Revenues from Manufacturing & Distribution rose 8.7% from last fiscal year’s quarterly figure to $371.2 million. Aviation’s revenues increased 9.1% from last fiscal year’s quarterly figure to $214.4 million. Technical Solutions’ revenues increased 21.5% from last fiscal year’s quarterly figure to $179.6 million. Education segment’s revenues of $217.1 million increased 6.9% from the prior-year fiscal quarter’s level.
Operating Results
Adjusted EBITDA came in at $130.7 million compared with $111.2 million in the year-ago quarter. Adjusted EBITDA margin was flat at 6.8%.
ABM Industries Incorporated Price, Consensus and EPS Surprise
ABM Industries Incorporated price-consensus-eps-surprise-chart | ABM Industries Incorporated Quote
Operating expenses increased 21.2% from the year-ago figure to $1.75 billion. Selling, general and administrative expenses declined 11.7% from the year-ago level to $159.7 million.
Balance Sheet & Cash Flow
ABM Industries exited fourth-quarter fiscal 2022 with cash and cash equivalents of $73 million compared with $63.9 million at the end of the prior fiscal quarter. Long-term debt was $1.1 billion compared with $1 billion at the end of the prior fiscal quarter.
Net cash provided by operating activities totaled $117.1 million for the reported quarter. Free cash flow came in at $104.1 million.
During the reported quarter, ABM repurchased 0.6 million shares at an average price of $39.69, for a total cost of $23 million.
During the reported quarter, ABM paid out dividend worth $12.8 million.
Fiscal 2023 Guidance
For fiscal 2023, ABM Industries expects adjusted EPS to be in the range of $3.40-$3.60. The midpoint of the guided range ($3.50 per share) lies below the Zacks Consensus Estimate of $3.66 per share. Adjusted EBITDA margin is anticipated to be in the range of 6.4-6.8%. Interest expense is expected to be in the range of $71-$74 million for fiscal 2023.
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.
Recent Releases
Omnicom Group Inc. (OMC - Free Report) reported impressive third-quarter 2022 results, wherein both earnings and revenues surpassed the respective Zacks Consensus Estimate.
Earnings of $1.77 per share beat the Zacks Consensus Estimate by 7.9% and increased 7.3% year over year, driven by a solid margin performance. Total revenues of $3.4 billion surpassed the Zacks Consensus Estimate by 3% and increased slightly on a year-over-year basis.
Equifax Inc. (EFX - Free Report) reported stellar third-quarter 2022 results, wherein both earnings and revenues surpassed the respective Zacks Consensus Estimate.
Adjusted earnings (excluding 39 cents from non-recurring items) of $1.73 per share beat the Zacks Consensus Estimate by 5.5% but decreased 6.5% on a year-over-year basis. However, revenues of $1.24 billion beat the Zacks Consensus Estimate by 2.3% and improved 1.8% year over year on a reported basis and 4% on a local-currency basis.
The Interpublic Group of Companies, Inc. (IPG - Free Report) reported better-than-expected third-quarter 2022 results.
Adjusted earnings (excluding a penny from non-recurring items) of 63 cents per share beat the Zacks Consensus Estimate by 6.8%. The bottom line has been flat over the past year. Net revenues of $2.3 billion beat the consensus estimate by 0.3% but declined 9.7% on a year-over-year basis. Total revenues of $2.64 billion increased 3.8% year over year.