Facility services provider ABM Industries (NYSE: ABM) will be reporting results this Wednesday before market open. Here’s what you need to know.
ABM beat analysts’ revenue expectations by 3% last quarter, reporting revenues of $2.22 billion, up 6.2% year on year. It was a slower quarter for the company, with a significant miss of analysts’ EPS estimates and 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 for active Edge members.
This quarter, analysts are expecting ABM’s revenue to grow 4.4% year on year to $2.27 billion, in line with the 4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.09 per share.
Analysts covering the company have generally 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 2.2% on average.
Looking at ABM’s peers in the industrial & environmental services segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Tetra Tech delivered year-on-year revenue growth of 1.6%, beating analysts’ expectations by 10.7%, and Driven Brands reported a revenue decline of 3.6%, falling short of estimates by 9.9%. Tetra Tech traded up 15.4% following the results while Driven Brands was also up 1.6%.
Read our full analysis of Tetra Tech’s results here and Driven Brands’s results here.
There has been positive sentiment among investors in the industrial & environmental services segment, with share prices up 8.5% on average over the last month. ABM is up 17% during the same time and is heading into earnings with an average analyst price target of $57.33 (compared to the current share price of $47.41).
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