ABM Industries Incorporated (ABM) stock has gained 19.5%, outperforming the 11% rally of the industry it belongs to and the 8.6% rise of the Zacks S&P 500 composite in the past six months. ABM reported impressive third-quarter fiscal 2024 results. EPS (excluding 86 cents from non-recurring items) was 94 cents, which outpaced the Zacks Consensus Estimate by 10.6% and gained 19% on a year-over-year basis. Total revenues of $2.1 billion surpassed the consensus mark by 2.7% and increased 3.3% from the yearago q ...

ABM Industries Incorporated (ABM) reported impressive third-quarter fiscal 2024 results, wherein earnings per share (EPS) and revenues beat the Zacks Consensus Estimate.The stock price has not witnessed any significant impact of the earnings beat since the company released results on Sept. 6, 2024.ABM’s EPS (excluding 86 cents from non-recurring items) was 94 cents, which outpaced the Zacks Consensus Estimate by 10.6% and gained 19% on a year-over-year basis. Total revenues of $2.1 billion surpassed the con ...

Revenue Performance - Revenues increased by $66.0 million, or 3.3%, to $2,094.2 million during the three months ended July 31, 2024, driven by organic growth of 2.8% and acquisition growth of 0.4%[105] - Revenues increased by $178.5 million, or 3.0%, to $6,182.0 million for the nine months ended July 31, 2024, compared to the prior year period, driven by organic growth of 2.8% and acquisition growth of 0.1%[140] - Total revenues for the Business & Industry segment decreased by $10.8 million, or 1.1%, to $1,010.6 million in Q3 2024 compared to Q3 2023[123] - Manufacturing & Distribution revenues fell by $4.8 million, or 1.2%, to $377.1 million in Q3 2024, primarily due to customer rebalancing[126] - Education segment revenues increased by $9.2 million, or 4.2%, to $228.3 million in Q3 2024, driven by business expansion with existing customers[128] - Aviation revenues rose by $30.4 million, or 12.8%, to $268.4 million in Q3 2024, attributed to new business and recovery in travel volume[130] - Technical Solutions revenues increased by $41.8 million, or 24.9%, to $209.7 million in Q3 2024, with organic growth of 20.0% and acquisition growth of 4.9%[133] - Revenues in the Business & Industry segment decreased by $23.0 million, or 0.8%, to $3,033.4 million, primarily due to client attrition and soft market conditions[151] - Manufacturing & Distribution revenues increased by $31.1 million, or 2.7%, to $1,166.6 million, driven by expansion with existing customers[153] - Aviation segment revenues rose by $78.6 million, or 11.6%, to $756.1 million, reflecting strong performance in the sector[150] - Technical Solutions revenues increased by $68.5 million, or 14.2%, to $551.9 million, indicating growth in project completions and service demand[150] - Education revenues increased by $23.3 million, or 3.6%, to $674.0 million during the nine months ended July 31, 2024, compared to the prior year period[155] Operating Performance - Operating profit decreased by $101.5 million to $37.4 million during the same period, primarily due to fair value adjustments related to acquisitions and unfavorable self-insurance reserve adjustments[106] - Operating profit decreased by $110.3 million, or 36.4%, to $192.8 million, reflecting challenges in various segments[150] - Operating profit for Education increased by $2.8 million, or 7.1%, to $42.3 million during the nine months ended July 31, 2024[156] - Operating profit for Aviation decreased by $3.0 million, or 7.1%, to $40.6 million during the nine months ended July 31, 2024[158] - Operating profit for Technical Solutions increased by $12.6 million, or 43.6%, to $41.4 million during the nine months ended July 31, 2024[161] Expenses and Costs - Operating expenses increased by $65.2 million, or 3.7%, to $1,831.0 million, with a gross margin decrease of 37 basis points to 12.6%[113] - Selling, general and administrative expenses rose by $107.5 million to $211.8 million, primarily due to fair value adjustments related to acquisitions and the absence of employee retention credits[114] - Selling, general and administrative expenses increased by $114.8 million, or 27.9%, to $526.3 million, primarily due to fair value adjustments and increased costs associated with systems' go-live[142] - Corporate expenses surged to $130.6 million in Q3 2024, up $114.7 million from the prior year, mainly due to fair value adjustments related to the RavenVolt Acquisition[135] - Corporate expenses increased by $128.3 million, or 81.9%, to $285.0 million during the nine months ended July 31, 2024[162] Cash Flow and Borrowings - Net cash provided by operating activities was $196.3 million during the nine months ended July 31, 2024, an increase compared to the prior year period[108] - At July 31, 2024, total outstanding borrowings under the Amended Credit Facility were $1.3 billion, with a weighted average interest rate of 7.19%[171] - Total outstanding borrowings under the Amended Credit Facility were $1.3 billion as of July 31, 2024, with a borrowing capacity of up to $427.6 million[108] - Net cash used in investing activities increased by $113.0 million during the nine months ended July 31, 2024, primarily related to the Quality Uptime Acquisition[179] Taxation - Effective tax rate for the three months ended July 31, 2024, was 74.0%, significantly higher than 17.7% for the same period in 2023, influenced by discrete items related to energy efficiency incentives[107] - Effective tax rate for Q3 2024 was 74.0%, significantly higher than 17.7% in Q3 2023, resulting in tax provisions of $13.3 million and $21.2 million respectively[118] - The effective tax rate increased to 30.7% for the nine months ended July 31, 2024, compared to 22.8% for the same period in 2023[146] Strategic Initiatives - The ELEVATE strategy aims to strengthen industry leadership with investments totaling $200 - $215 million, focusing on client experience, team member experience, and technology utilization[97] Accounting Standards Updates - The company is currently evaluating the impact of the recently issued Accounting Standard Updates (ASUs) on its financial statements, specifically regarding segment reporting and income tax disclosures[184] - The ASU on segment reporting requires annual and interim disclosures of significant segment expenses, effective for fiscal years beginning after December 15, 2023[184] - The ASU on income taxes aims to enhance transparency and decision usefulness of income tax disclosures, effective for fiscal years beginning after December 15, 2024[184] Market Risk - There are no material changes related to market risk from the disclosures in the Annual Report on Form 10-K for the year ended October 31, 2023[186]

Financial Data and Key Metrics Changes - Third quarter revenue reached $2.1 billion, an increase of 3.3%, driven by 2.8% organic growth and contributions from recent acquisitions [16][17] - Adjusted EPS was $0.94, reflecting a 19% increase year-over-year, supported by improved segment operating results and a lower share count due to share repurchases [18][24] - Adjusted EBITDA increased by 2% to $128.1 million, with an adjusted EBITDA margin of 6.4%, consistent with the previous year [18] Business Line Data and Key Metrics Changes - B&I segment revenue declined by 1% to $1 billion, with operating profit also down by 1% to $77.8 million, maintaining an operating margin of 7.7% [19] - Aviation segment revenue grew by 13% to $268.4 million, with operating profit increasing by 52% to $17.8 million, resulting in a margin of 6.6% [19] - Manufacturing and Distribution (M&D) revenue declined by 1% to $377.1 million, but operating profit increased by 8% to $40.9 million, with an operating margin of 10.9% [20] - Education segment revenue increased by 4% to $228.3 million, with operating profit up 13% to $18 million, achieving a margin of 7.9% [21] - Technical Solutions revenue grew by 25% to $209.7 million, with organic growth of 20%, and operating profit increased by 56% to $17.9 million, resulting in a margin of 8.5% [22] Market Data and Key Metrics Changes - The commercial real estate market remains under pressure, but there are signs of stabilization, with 38% of corporate real estate executives planning to expand office space [11] - The manufacturing and distribution markets are healthy, driven by strong industrial economy trends and onshoring manufacturing in the US [12] - The aviation market is robust, with ABM emerging as a leader in facilities management, contributing to the segment's growth [13] Company Strategy and Development Direction - The company is focused on diversifying and strengthening its core services, particularly in high-growth markets such as data centers and energy solutions [9][10] - Continued investment in technology and analytics, such as the workforce productivity optimization tool, is expected to enhance operational efficiency [8][35] - The acquisition of Quality Uptime Services is part of the strategy to expand capabilities in the data center vertical [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery in the commercial real estate market, although caution is advised regarding the timing and scope of this recovery [11] - The company raised its full-year guidance for adjusted EPS to a range of $3.48 to $3.55, reflecting confidence in a strong finish to the year [15][24] - Management highlighted the importance of maintaining profitability thresholds and being selective about client contracts to ensure value [54] Other Important Information - Total indebtedness at the end of Q3 was $1.4 billion, with available liquidity of $513.9 million [22][23] - Free cash flow for the third quarter was $64 million, with year-to-date free cash flow of $152 million, reflecting strong cash generation capabilities [23] Q&A Session Summary Question: Guidance on EPS expectations for Q4 - Management indicated that the strong performance in Q3, particularly in Technical Solutions, is not expected to fully carry over to Q4 due to rebalancing impacts in M&D [28][29] Question: Sustainability of segment margin improvements - Management confirmed that margin improvements are sustainable, driven by operational resilience and efficiency gains, despite some expected pressure in M&D [30][31] Question: Factors driving labor efficiencies - Labor costs have stabilized, and the availability of labor has improved, contributing to better margins across segments [34][35] Question: Update on B&I segment revenue expectations - Management remains optimistic about the B&I segment, which has shown resilience despite the challenges in commercial real estate [40][41] Question: Insights on the microgrid business - The microgrid business is primarily driven by new clients, with strong cross-selling opportunities expected as the business matures [56][57] Question: Capital allocation strategy regarding M&A - The company will continue to balance capital allocation between M&A opportunities and shareholder returns, with a focus on accretive acquisitions [61][62]

The Business Services group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. ABM Industries (ABM) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? By taking a look at the stock's year-to-date performance in comparison to its Business Services peers, we might be able to answer that question.ABM Industries is a member of our Business Services group, which ...

ABM Industries (ABM) reported $2.09 billion in revenue for the quarter ended July 2024, representing a year-over-year increase of 3.3%. EPS of $0.94 for the same period compares to $0.79 a year ago.The reported revenue represents a surprise of +2.75% over the Zacks Consensus Estimate of $2.04 billion. With the consensus EPS estimate being $0.85, the EPS surprise was +10.59%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street ...

ABM Industries (ABM) came out with quarterly earnings of $0.94 per share, beating the Zacks Consensus Estimate of $0.85 per share. This compares to earnings of $0.79 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 10.59%. A quarter ago, it was expected that this provider of cleaning and other maintenance services for commercial buildings, hospitals and airports would post earnings of $0.78 per share when it actually produced e ...

Exhibit 99.1 ABM REPORTS THIRD QUARTER FISCAL 2024 RESULTS AND RAISES OUTLOOK FOR FISCAL YEAR 2024 ADJUSTED EPS • Revenue up 3.3% to $2.1 billion, including organic growth of 2.8% • Net income of $4.7 million and GAAP EPS of $0.07, each down 95%, largely reflecting the increased likelihood of a cash earn-out payment under the Ravenvolt acquisition agreement • Adjusted net income of $59.5 million and Adjusted EPS of $0.94, up 13% and 19%, respectively • Adjusted EBITDA of $128.1 million, up 2% • Raises outlo ...

Revenue up 3.3% to $2.1 billion, including organic growth of 2.8%Net income of $4.7 million and GAAP EPS of $0.07, each down 95%, largely reflecting the increased likelihood of a cash earn-out payment under the Ravenvolt acquisition agreementAdjusted net income of $59.5 million and Adjusted EPS of $0.94, up 13% and 19%, respectivelyAdjusted EBITDA of $128.1 million, up 2%Raises outlook for fiscal year 2024 Adjusted EPS to $3.48 to $3.55, from $3.40 to $3.50 (1) NEW YORK, Sept. 06, 2024 (GLOBE NEWSWIRE) -- A ...

In its upcoming report, ABM Industries (ABM) is predicted by Wall Street analysts to post quarterly earnings of $0.85 per share, reflecting an increase of 7.6% compared to the same period last year. Revenues are forecasted to be $2.04 billion, representing a year-over-year increase of 0.5%.The current level reflects no revision in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections ove ...