Why Is ABM Industries (ABM) Up 3.6% Since Last Earnings Report?

Core Viewpoint - ABM Industries reported mixed results for Q4 fiscal 2025, with earnings per share (EPS) missing estimates while revenues exceeded expectations, leading to questions about the sustainability of its recent positive stock performance [3][2]. Financial Performance - ABM's EPS was 88 cents, missing the Zacks Consensus Estimate by 20% and declining 2.2% year-over-year [3]. - Total revenues reached $2.3 billion, surpassing the consensus mark by 1.2% and increasing 5.4% from the previous year [3]. Segmental Revenues - The Business & Industry segment's revenues increased 2.3% year-over-year to $1 billion, meeting estimates [4]. - The education segment's revenues were $233.7 million, up 1.6% from the year-ago quarter, also meeting projections [4]. - The Manufacturing & Distribution segment's revenues rose 7.7% to $417.4 million, exceeding expectations [5]. - The Aviation segment's revenues increased 7.3% to $296.7 million, surpassing estimates [5]. - Technical solutions revenues gained 16% to $298.7 million but missed the estimate of $314.7 million [6]. Profitability Performance - Adjusted EBITDA was $124.2 million, down 1.1% year-over-year, with an adjusted EBITDA margin of 5.6%, declining 60 basis points from the previous year [7]. Balance Sheet & Cash Flow - Cash and cash equivalents at the end of Q4 fiscal 2025 were $104.1 million, up from $69.3 million in the previous quarter [8]. - Long-term debt remained flat at $1.5 billion [8]. - Net cash generated by operating activities was $133.4 million, with free cash flow of $112.7 million [8]. FY26 Guidance - For fiscal 2026, ABM expects adjusted EPS to be at the lower end of the range of $3.85-$4.15 [9]. Market Sentiment - There has been an upward trend in estimates for ABM in the past month, indicating positive market sentiment [10]. - ABM Industries holds a Zacks Rank 3 (Hold), suggesting an expectation of in-line returns in the coming months [13].