ABM Industries has seen a 4.4% increase in shares since its last earnings report, outperforming the S&P 500.
Now, the big question is whether this positive trend will keep going until the next earnings release or if they might hit a bump in the road. To get a clearer picture, let’s quickly recap their latest earnings report and see what’s been driving this momentum.
In their fourth-quarter results for fiscal 2024, ABM Industries really knocked it out of the park. They reported earnings per share (EPS) of 90 cents, which beat the Zacks Consensus Estimate by 4.7%. Sure, that’s down 10.9% from last year, but their total revenues hit $2.2 billion, surpassing expectations by 4.3% and showing a 4% increase from the same quarter last year.
Breaking it down by segments, their Technical Solutions saw a whopping 34.9% increase, reaching $257.4 million, thanks to strong microgrid projects. The Aviation segment also did well, with an 11.4% rise to $276.5 million, driven by a booming travel market.
On the flip side, the Education segment barely budged, coming in at $230 million, which was a slight miss on estimates. Meanwhile, the Manufacturing & Distribution segment saw a dip but still managed to exceed expectations.
When it comes to profitability, their adjusted EBITDA was $128 million, down 11% from last year, and the adjusted EBITDA margin slipped a bit. They ended the quarter with $64.6 million in cash, down from $86.3 million previously, but their long-term debt remained steady at $1.3 billion.
Looking ahead, ABM has raised its EPS guidance for fiscal 2025, now expecting between $3.6 and $3.8, which is a nice bump from earlier estimates.
Overall, estimates for ABM have been trending up lately, and they’ve got a solid Zacks Rank of #2, which means “Buy.” So, it looks like they’re set for some good returns in the coming months.
