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ABM Industries (ABM) Down 4.5% Since Last Earnings Report: Can It Rebound?
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A month has gone by since the last earnings report for ABM Industries (ABM - Free Report) . Shares have lost about 4.5% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is ABM Industries due for a breakout? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent drivers for ABM Industries Incorporated before we dive into how investors and analysts have reacted as of late.
ABM Industries Misses Q1 Earnings Estimates
ABM reported mixed first-quarter fiscal 2026 results. Earnings per share (EPS) missed the Zacks Consensus Estimate, while revenues beat the same.
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.
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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a upward trend in estimates revision.
VGM Scores
At this time, ABM Industries has a average Growth Score of C, a score with the same score on the momentum front. However, the stock has a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, ABM Industries has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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ABM Industries (ABM) Down 4.5% Since Last Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for ABM Industries (ABM - Free Report) . Shares have lost about 4.5% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is ABM Industries due for a breakout? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent drivers for ABM Industries Incorporated before we dive into how investors and analysts have reacted as of late.
ABM Industries Misses Q1 Earnings Estimates
ABM reported mixed first-quarter fiscal 2026 results. Earnings per share (EPS) missed the Zacks Consensus Estimate, while revenues beat the same.
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.
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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a upward trend in estimates revision.
VGM Scores
At this time, ABM Industries has a average Growth Score of C, a score with the same score on the momentum front. However, the stock has a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, ABM Industries has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.