Leading provider of facility solutions, ABM Industries Incorporated (ABM - Analyst Report) , recently announced that it has inked a deal to offer its energy infrastructure upgrades for Salida Union School District, CA.
Per the deal, ABM will provide its customized solution to help Salida Union School District curb costs of over $4.6 million in energy and operating over the next 20 years. The company will be offering energy-efficient solutions and water conservation ways to various schools within the vicinity. The projects are scheduled to be completed in 2017.
The company’s energy performance contracting program provides cost-reduction solutions for its client’s operating budget, enabling savings which can be used to fund mission critical facility requirements.
Due to lack of funds, Salida Union School District initially had been utilizing old equipments due to which they had to incur high operating and maintenance costs. The California Energy Commission had provided the required funds for the setting up of this new facility.
To help Salida Union School District qualify for the fund provision by California Energy Commission, ABM conducted an extensive audit and worked with top members of the District to determine degrading equipment and fall in energy-efficiency opportunities for various schools. Using this information, ABM’s team assisted the District get 39 grant to fund the project.
The program will provide 925,000 kilowatt-hours on an average in energy savings, which will be monitored by the company over the tenure of the contract, to make certain that the full amount is received. ABM anticipates that the operational savings will amount to more than $175,000 per year in addition to the energy savings.
This is a long-term project for ABM, which will help it reap profits and will augment the company’s goodwill in the market.
Some other stocks worth considering in the Business Service industry include InnerWorkings Inc. (INWK - Snapshot Report) , Xerox Corporation (XRX - Analyst Report) and Avis Budget Group, Inc. (CAR - Analyst Report) .
InnerWorkings is a Business Service stock with an average positive earnings surprise of 77.9% over the last four quarters. The company beat estimates in all of the past four quarters.
Xerox, belonging to the Business Services space, has a positive earnings surprise history. The company beat estimates thrice in the trailing four quarters.
Avis Budget has seen estimates rise from $2.27 per share to $2.35 over the last 60 days.
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