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ABM Stock Price Decreases 5% Since Reporting Q3 Earnings Miss
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Key Takeaways
ABM's Q3 EPS fell 12.8% y/y and missed estimates, but revenues grew 6.2%.
Manufacturing, aviation and technical solutions drove strong segmental revenue gains.
ABM expects FY25 EPS at the low end of $3.65-$3.80, with the mid-point topping the consensus estimate.
ABM (ABM - Free Report) has reported mixed third-quarter fiscal 2025 results. Earnings per share (EPS) missed the Zacks Consensus Estimate, while revenues beat the same.
Dismal earnings results disappointed investors, as the ABM stock has declined 4.6% since the release of results on Sept. 5.
ABM’s EPS (excluding 16 cents from non-recurring items) was 82 cents, which missed the Zacks Consensus Estimate by 13.7% and declined 12.8% year over year. Total revenues of $2.2 billion surpassed the consensus mark by 2.8% and increased 6.2% from the year-ago quarter.
The company’s shares have declined 6.5% in the past year compared with the1.7% decline of the industry and the 18.9% rise of the Zacks S&P 500 composite.
ABM Industries Incorporated Price, Consensus and EPS Surprise
The Business & Industry segment’s revenues gained 2.8% on a year-over-year basis to $1 billion and met our estimate. Expansion with existing clients and continued demand in the U.K. and in sports and entertainment businesses fueled this segment’s revenues.
The Manufacturing & Distribution segment’s revenues increased 8.4% from the year-ago quarter to $408.9 million, beating our estimation of $375.9 million. This segment showed promising growth on the back of contract wins and a broader client base.
The aviation segment’s revenues increased 8.7% from the year-ago quarter to $291.8 million, surpassing our anticipation of $288.3 million. Positive travel demand and contract wins aided this segment’s revenue growth.
Technical solutions gained 19% from the third quarter of fiscal 2024 to $249.5 million. The metric missed our estimate of $261.8 million.Strong demand for microgrids, data centers and power services augmented revenues in this segment.
The education segment’s revenues were $235.1 million, a 3% rise from the year-ago quarter. It outpaced our estimate of $230.4 million. Optimistic labor efficiencies and their escalation led to this segment’s revenue increase.
Profitability Performance of ABM
Adjusted EBITDA was $125.8 million, up 5% from the year-ago quarter. The adjusted EBITDA margin was 5.9%, flat with third-quarter fiscal 2024.
ABM’s Balance Sheet & Cash Flow
The company exited the third-quarter fiscal 2025 with cash and cash equivalents of $69.3 million compared with $58.7 million at the end of the preceding quarter. The long-term debt (net) was $1.5 billion, flat with the second quarter of fiscal 2025. Net cash generated by operating activities was $175 million for the quarter. The free cash flow was $150.2 million.
ABM’s FY25 Guidance
For fiscal 2025, ABM expects the adjusted EPS to be at the lower end of its view of $3.65-$3.80. The mid-point of the guided range ($3.73) is higher than the Zacks Consensus Estimate of $3.71. The adjusted EBITDA margin is expected to hover within 6.3-6.5%.
Corpay, Inc.’s(CPAY - Free Report) second-quarter 2025 EPS met the consensus mark, while revenues beat the same.
CPAY’s EPS of $5.13 met the consensus estimate by a slight margin and increased 12.8% year over year. The total revenues of $1.1 billion beat the consensus estimate by a slight margin and gained 13% from the year-ago quarter.
CLH’s earnings of $2.36 per share outpaced the Zacks Consensus Estimate by 1.3% but decreased 4.1% from the year-ago quarter. Total revenues of $1.5 billion missed the consensus estimate by 2% and decreased marginally on a year-over-year basis.
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ABM Stock Price Decreases 5% Since Reporting Q3 Earnings Miss
Key Takeaways
ABM (ABM - Free Report) has reported mixed third-quarter fiscal 2025 results. Earnings per share (EPS) missed the Zacks Consensus Estimate, while revenues beat the same.
Dismal earnings results disappointed investors, as the ABM stock has declined 4.6% since the release of results on Sept. 5.
ABM’s EPS (excluding 16 cents from non-recurring items) was 82 cents, which missed the Zacks Consensus Estimate by 13.7% and declined 12.8% year over year. Total revenues of $2.2 billion surpassed the consensus mark by 2.8% and increased 6.2% from the year-ago quarter.
The company’s shares have declined 6.5% in the past year compared with the1.7% decline of the industry and the 18.9% rise of the Zacks S&P 500 composite.
ABM Industries Incorporated Price, Consensus and EPS Surprise
ABM Industries Incorporated price-consensus-eps-surprise-chart | ABM Industries Incorporated Quote
ABM’s Segmental Revenues
The Business & Industry segment’s revenues gained 2.8% on a year-over-year basis to $1 billion and met our estimate. Expansion with existing clients and continued demand in the U.K. and in sports and entertainment businesses fueled this segment’s revenues.
The Manufacturing & Distribution segment’s revenues increased 8.4% from the year-ago quarter to $408.9 million, beating our estimation of $375.9 million. This segment showed promising growth on the back of contract wins and a broader client base.
The aviation segment’s revenues increased 8.7% from the year-ago quarter to $291.8 million, surpassing our anticipation of $288.3 million. Positive travel demand and contract wins aided this segment’s revenue growth.
Technical solutions gained 19% from the third quarter of fiscal 2024 to $249.5 million. The metric missed our estimate of $261.8 million.Strong demand for microgrids, data centers and power services augmented revenues in this segment.
The education segment’s revenues were $235.1 million, a 3% rise from the year-ago quarter. It outpaced our estimate of $230.4 million. Optimistic labor efficiencies and their escalation led to this segment’s revenue increase.
Profitability Performance of ABM
Adjusted EBITDA was $125.8 million, up 5% from the year-ago quarter. The adjusted EBITDA margin was 5.9%, flat with third-quarter fiscal 2024.
ABM’s Balance Sheet & Cash Flow
The company exited the third-quarter fiscal 2025 with cash and cash equivalents of $69.3 million compared with $58.7 million at the end of the preceding quarter. The long-term debt (net) was $1.5 billion, flat with the second quarter of fiscal 2025. Net cash generated by operating activities was $175 million for the quarter. The free cash flow was $150.2 million.
ABM’s FY25 Guidance
For fiscal 2025, ABM expects the adjusted EPS to be at the lower end of its view of $3.65-$3.80. The mid-point of the guided range ($3.73) is higher than the Zacks Consensus Estimate of $3.71. The adjusted EBITDA margin is expected to hover within 6.3-6.5%.
ABM currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Snapshot
Corpay, Inc.’s (CPAY - Free Report) second-quarter 2025 EPS met the consensus mark, while revenues beat the same.
CPAY’s EPS of $5.13 met the consensus estimate by a slight margin and increased 12.8% year over year. The total revenues of $1.1 billion beat the consensus estimate by a slight margin and gained 13% from the year-ago quarter.
Clean Harbors, Inc. (CLH - Free Report) reported mixed second-quarter 2025 results.
CLH’s earnings of $2.36 per share outpaced the Zacks Consensus Estimate by 1.3% but decreased 4.1% from the year-ago quarter. Total revenues of $1.5 billion missed the consensus estimate by 2% and decreased marginally on a year-over-year basis.