Why Is ABM Industries (ABM) Up 4.4% Since Last Earnings Report?

Core Viewpoint - ABM Industries reported strong fourth-quarter fiscal 2024 results, with earnings and revenues exceeding estimates, indicating positive momentum leading into fiscal 2025 [2][11]. Financial Performance - Earnings per share (EPS) for Q4 fiscal 2024 was 90 cents, surpassing the Zacks Consensus Estimate by 4.7%, although it represented a decline of 10.9% year-over-year [2]. - Total revenues reached $2.2 billion, exceeding the consensus mark by 4.3% and increasing by 4% compared to the previous year [2]. Segmental Revenues - Technical Solutions segment revenues surged by 34.9% year-over-year to $257.4 million, outperforming estimates of $212.2 million, driven by strong microgrid project activity [3]. - Aviation segment revenues rose by 11.4% year-over-year to $276.5 million, exceeding estimates of $250 million, supported by robust travel markets [3]. - Education segment revenues were $230 million, showing a marginal increase year-over-year but slightly missing estimates [4]. - Manufacturing & Distribution segment revenues decreased to $387.7 million, slightly surpassing expectations, influenced by client rebalancing [5]. - Business & Industry segment revenues declined slightly year-over-year to $1 billion, exceeding estimates of $991.9 million [5]. Profitability Metrics - Adjusted EBITDA for Q4 was $128 million, down 11% from the previous year, with an adjusted EBITDA margin of 6.2%, a decrease of 60 basis points year-over-year [6]. Balance Sheet & Cash Flow - At the end of Q4 fiscal 2024, cash and cash equivalents stood at $64.6 million, down from $86.3 million in the previous quarter [7]. - Long-term debt remained stable at $1.3 billion, while net cash generated from operating activities was $30.3 million, and free cash flow amounted to $15.5 million [7]. Future Guidance - The company raised its EPS guidance for fiscal 2025 to a range of $3.6-$3.8, up from the previous estimate of $3.48-$3.55 [8]. Market Sentiment - Recent estimates for ABM Industries have trended upward, reflecting positive market sentiment and expectations for above-average returns in the coming months [9][11]. - The stock currently holds a strong Growth Score of A and a value grade of A, placing it in the top 20% for investment strategies [10].