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ABM Stock Price Decreases 11% Since Reporting Q1 Earnings Miss
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Key Takeaways
ABM reported Q1'26 EPS of 83 cents, missing estimates by 4.6%, while revenues rose 6.1% to $2.3B.
ABM shares have fallen 10.7% since the March 10 results as investors reacted to the earnings miss.
ABM expects FY26 adjusted EPS of $3.85-$4.15, with the $4 midpoint below the consensus estimate of $4.08.
ABM (ABM - Free Report) reported mixed first-quarter fiscal 2026 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 10.7% since the release of results on March 10.
ABM’s EPS (excluding 19 cents from non-recurring items) was 83 cents, which missed the Zacks Consensus Estimate by 4.6% and declined 4.6% year over year. Total revenues of $2.3 billion surpassed the consensus mark by 1.3% and gained 6.1% from the year-ago quarter.
The company’s shares have lost 15.3% in the past year compared with the 24.3% decline of the industry and the 25% rise of the Zacks S&P 500 composite.
ABM Industries Incorporated Price, Consensus and EPS Surprise
The Business & Industry segment’s revenues gained 4.1% on a year-over-year basis to $1.1 billion, beating our estimate of $1 billion. The education segment’s revenues were $228.7 million, up 1.5% from the year-ago quarter. It missed our anticipated figure of $229.8 million.
The Manufacturing & Distribution segment’s revenues increased 7.1% from the year-ago quarter to $422.3 million, meeting our estimated figure. The Aviation segment’s revenues surged 10.2% from the year-ago quarter to $297.7 million, missing our expectation of $284.6 million.
Technical solutions gained 13.6% from the first quarter of fiscal 2025 to $229.7 million. The metric fell short of our $239.5 million estimate.
Profitability Performance of ABM
Adjusted EBITDA was $117.8 million, dipping 2.3% from the year-ago quarter. The adjusted EBITDA margin was 5.2%, declining 50 basis points from the first-quarter fiscal 2025.
ABM’s Balance Sheet & Cash Flow
The company exited the first quarter of fiscal 2026 with cash and cash equivalents of $100.4 million compared with $104.1 million at the end of the preceding quarter. The long-term debt (net) was $1.6 billion compared with $1.5 billion reported in the fourth quarter of fiscal 2025. Net cash generated by operating activities was $62 million for the quarter. The free cash flow was $48.9 million.
ABM’s FY26 Guidance
For fiscal 2026, ABM expects its adjusted EPS to be $3.85-$4.15. The mid-point of the guided range ($4) is lower than the Zacks Consensus Estimate of $4.08.
TRU’s quarterly adjusted EPS (adjusting 55 cents from non-recurring items) of $1.07 surpassed the consensus mark by 3.9%. The metric grew 10.3% year over year. Total revenues of $1.2 billion beat the consensus mark by 3% and rose 13% from the year-ago quarter.
Fiserv, Inc. (FISV - Free Report) has reported mixed fourth-quarter 2025 results.
FISV’s adjusted earnings per share of $1.99 surpassed the consensus mark by 4.7% but declined 20.7% year over year. Adjusted revenues of $4.9 billion missed the consensus estimate by 1% and dipped 6.7% on a year-over-year basis.
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ABM Stock Price Decreases 11% Since Reporting Q1 Earnings Miss
Key Takeaways
ABM (ABM - Free Report) reported mixed first-quarter fiscal 2026 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 10.7% since the release of results on March 10.
ABM’s EPS (excluding 19 cents from non-recurring items) was 83 cents, which missed the Zacks Consensus Estimate by 4.6% and declined 4.6% year over year. Total revenues of $2.3 billion surpassed the consensus mark by 1.3% and gained 6.1% from the year-ago quarter.
The company’s shares have lost 15.3% in the past year compared with the 24.3% decline of the industry and the 25% 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 4.1% on a year-over-year basis to $1.1 billion, beating our estimate of $1 billion. The education segment’s revenues were $228.7 million, up 1.5% from the year-ago quarter. It missed our anticipated figure of $229.8 million.
The Manufacturing & Distribution segment’s revenues increased 7.1% from the year-ago quarter to $422.3 million, meeting our estimated figure. The Aviation segment’s revenues surged 10.2% from the year-ago quarter to $297.7 million, missing our expectation of $284.6 million.
Technical solutions gained 13.6% from the first quarter of fiscal 2025 to $229.7 million. The metric fell short of our $239.5 million estimate.
Profitability Performance of ABM
Adjusted EBITDA was $117.8 million, dipping 2.3% from the year-ago quarter. The adjusted EBITDA margin was 5.2%, declining 50 basis points from the first-quarter fiscal 2025.
ABM’s Balance Sheet & Cash Flow
The company exited the first quarter of fiscal 2026 with cash and cash equivalents of $100.4 million compared with $104.1 million at the end of the preceding quarter. The long-term debt (net) was $1.6 billion compared with $1.5 billion reported in the fourth quarter of fiscal 2025. Net cash generated by operating activities was $62 million for the quarter. The free cash flow was $48.9 million.
ABM’s FY26 Guidance
For fiscal 2026, ABM expects its adjusted EPS to be $3.85-$4.15. The mid-point of the guided range ($4) is lower than the Zacks Consensus Estimate of $4.08.
ABM currently carries a Zacks Rank #3 (Hold). You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Snapshot
TransUnion (TRU - Free Report) reported impressive fourth-quarter 2025 results.
TRU’s quarterly adjusted EPS (adjusting 55 cents from non-recurring items) of $1.07 surpassed the consensus mark by 3.9%. The metric grew 10.3% year over year. Total revenues of $1.2 billion beat the consensus mark by 3% and rose 13% from the year-ago quarter.
Fiserv, Inc. (FISV - Free Report) has reported mixed fourth-quarter 2025 results.
FISV’s adjusted earnings per share of $1.99 surpassed the consensus mark by 4.7% but declined 20.7% year over year. Adjusted revenues of $4.9 billion missed the consensus estimate by 1% and dipped 6.7% on a year-over-year basis.