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ABM Industries (ABM) to Report Q3 Earnings: What to Expect?

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ABM Industries Inc. (ABM - Free Report) is scheduled to report third-quarter fiscal 2019 results on Sep 5, after the bell.

Shares of ABM Industries have gained 17.4% year to date, outperforming the 9.5% rally of the industry it belongs to.

Expectations This Time Around

The Zacks Consensus Estimate for the to-be-reported quarter’s revenues is pegged at $1.65 billion, indicating year-over-year growth of 1.5%. The expected increase is likely to be driven by organic growth in the company’s U.S. Technical Solutions business.

In second-quarter fiscal 2019, total revenues of $1.59 billion increased 0.9 % year over year. Organic revenue growth was 1.7%.

The consensus mark for earnings stands at 58 cents, indicatingyear-over-year growth of 1.8%. The bottom line is likely to benefit from adoption of Accounting Standards Codification ("ASC") 606 and higher margin revenue contribution from Technical Solutions segment.

In second-quarter fiscal 2019, adjusted earnings of 47 cents per share were flat year over year.

What Our Model Says

A company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. Zacks Rank #4 (Sell) or 5 (Strong Sell) stocks are best avoided, especially if the companies are witnessing negative estimate revisions. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

ABM has an Earnings ESP of -0.57% and Zacks Rank #3.

Stocks to Consider

Some better-ranked stocks in the broader Zacks Business Services sector include Fiserv , Booz Allen Hamilton (BAH - Free Report) and Charles River Associates (CRAI - Free Report) , each carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

The long-term expected EPS (three to five years) growth rate for Fiserv, Booz Allen and Charles River is 12%, 13% and 13%, respectively.

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