Facility services provider ABM Industries (NYSE: ABM) will be reporting results this Friday before market open. Here’s what to look for.
ABM beat analysts’ revenue expectations by 2.1% last quarter, reporting revenues of $2.11 billion, up 4.6% year on year. It was a satisfactory quarter for the company, with a solid beat of analysts’ organic revenue estimates but a slight miss of analysts’ full-year EPS guidance estimates.
Is ABM a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting ABM’s revenue to grow 3.1% year on year to $2.16 billion, in line with the 3.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.95 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. ABM has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 2% on average.
Looking at ABM’s peers in the industrial & environmental services segment, some have already reported their Q2 results, giving us a hint as to what we can expect. CECO Environmental delivered year-on-year revenue growth of 34.8%, beating analysts’ expectations by 3.5%, and Vestis reported a revenue decline of 3.5%, in line with consensus estimates. CECO Environmental traded up 25.5% following the results while Vestis was down 5.6%.
Read our full analysis of CECO Environmental’s results here and Vestis’s results here.
There has been positive sentiment among investors in the industrial & environmental services segment, with share prices up 4.7% on average over the last month. ABM is up 4.5% during the same time and is heading into earnings with an average analyst price target of $58.20 (compared to the current share price of $49.10).
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