Latest news with #ABMIndustries
Yahoo
10 hours ago
- Business
- Yahoo
Why ABM Industries Topped the Market Today
Not one, but two analysts upgraded their recommendations on the company. Both now believe investors should buy its shares. 10 stocks we like better than Abm Industries › ABM Industries (NYSE: ABM) stock kicked off the trading week on a high note Monday, closing more than 3.5% higher in price following two recommendation upgrades from analysts tracking the stock. That performance was more than good enough to eclipse the bellwether S&P 500 index, which essentially flatlined that day. Those pundit updates came one business day after ABM released its second quarter of fiscal 2025 earnings report. The company notched a minor beat on the consensus analyst estimate for revenue but missed slightly on that for profitability. Investors didn't greet this development warmly, and their immediate reaction as a group was to trade out of ABM's shares. The situation flipped on Monday, however, as the pair of pundits published new takes on the stock before market open. The first upgrade came from Baird's Andrew Wittman. He upgraded his recommendation on ABM to outperform (i.e., buy) from the previous neutral at a price target of $56 per share. According to reports, Wittman feels the sell-off was unjustified and leaves the stock attractively priced, especially since the company has been effective at securing new work. His peer Joshua Chan at UBS also became notably more bullish on ABM with a recommendation change to buy from neutral (in his case, tagging the stock with a $50 per share price target). According to reports, Chan was particularly encouraged by renewed growth in the company's core business and industry segment. Personally, I'd fall between those bearish investors selling off ABM stock Friday and the analysts upping their recommendations. Yes, the company has reported some encouraging developments of late, but it's neither a strongly growing business nor a high-yielding dividend payer. I'd probably look elsewhere for stocks with better potential. Before you buy stock in Abm Industries, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Abm Industries wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $669,517!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $868,615!* Now, it's worth noting Stock Advisor's total average return is 792% — a market-crushing outperformance compared to 173% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Eric Volkman has no position in any of the stocks mentioned. The Motley Fool recommends Abm Industries. The Motley Fool has a disclosure policy. Why ABM Industries Topped the Market Today was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
15 hours ago
- Business
- Globe and Mail
Why ABM Industries Topped the Market Today
ABM Industries (NYSE: ABM) stock kicked off the trading week on a high note Monday, closing more than 3.5% higher in price following two recommendation upgrades from analysts tracking the stock. That performance was more than good enough to eclipse the bellwether S&P 500 index, which essentially flatlined that day. Investors overreacted to results, says analyst Those pundit updates came one business day after ABM released its second quarter of fiscal 2025 earnings report. The company notched a minor beat on the consensus analyst estimate for revenue but missed slightly on that for profitability. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » Investors didn't greet this development warmly, and their immediate reaction as a group was to trade out of ABM's shares. The situation flipped on Monday, however, as the pair of pundits published new takes on the stock before market open. The first upgrade came from Baird's Andrew Wittman. He upgraded his recommendation on ABM to outperform (i.e., buy) from the previous neutral at a price target of $56 per share. According to reports, Wittman feels the sell-off was unjustified and leaves the stock attractively priced, especially since the company has been effective at securing new work. Good business with business and industry His peer Joshua Chan at UBS also became notably more bullish on ABM with a recommendation change to buy from neutral (in his case, tagging the stock with a $50 per share price target). According to reports, Chan was particularly encouraged by renewed growth in the company's core business and industry segment. Personally, I'd fall between those bearish investors selling off ABM stock Friday and the analysts upping their recommendations. Yes, the company has reported some encouraging developments of late, but it's neither a strongly growing business nor a high-yielding dividend payer. I'd probably look elsewhere for stocks with better potential. Should you invest $1,000 in Abm Industries right now? Before you buy stock in Abm Industries, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Abm Industries wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $669,517!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $868,615!* Now, it's worth noting Stock Advisor 's total average return is792% — a market-crushing outperformance compared to173%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 9, 2025
Yahoo
2 days ago
- Business
- Yahoo
ABM Industries Inc (ABM) Q2 2025 Earnings Call Highlights: Strong Revenue Growth and Strategic ...
Revenue: $2.1 billion, a 4.6% year-over-year increase. Organic Revenue Growth: 3.8%. Adjusted EPS: $0.86. Net Income: $42.2 million or $0.67 per diluted share. Adjusted Net Income: $54.1 million or $0.86 per diluted share. Adjusted EBITDA: $125.9 million. Adjusted EBITDA Margin: 6.2%. Free Cash Flow: $15 million, an improvement of $138 million over Q1. Total Indebtedness: $1.6 billion. Available Liquidity: $657.8 million. B&I Revenue: $1 billion, up 3% year-over-year. Aviation Revenue: $260.1 million, a 9% increase. M&D Revenue: $398.1 million, a 2% increase. Education Revenue: $227.8 million, a 1% increase. Technical Solutions Revenue: $210.2 million, a 19% increase. Full-Year Adjusted EPS Guidance: Reaffirmed at $3.65 to $3.80. Full-Year Adjusted EBITDA Margin Guidance: 6.3% to 6.5%. Warning! GuruFocus has detected 5 Warning Signs with ABM. Release Date: June 06, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. ABM Industries Inc (NYSE:ABM) achieved a record $1.1 billion in new bookings during the first half of 2025. The company posted 3.8% organic revenue growth, driven by recovery in core commercial office markets and new contract wins. ABM Industries Inc (NYSE:ABM) saw strong performances in its Aviation and Education segments, with Aviation revenue growing by 9%. The M&D segment returned to organic growth earlier than anticipated, driven by expansion with existing clients and new business wins. ABM Industries Inc (NYSE:ABM) is well-positioned to benefit from strong demand in high-growth sectors like semiconductors and e-commerce, with significant investments in technical sales and industry-specific capabilities. Temporary project delays and service mix headwinds impacted profitability in the ATS segment. The M&D segment experienced a year-over-year margin decline due to investments in technical sales talent and strategic pricing on new contracts. Higher interest expenses were noted, impacting the overall financial results. Free cash flow for the first half of the year was negative, requiring a strong second half to meet full-year targets. The Technical Solutions segment faced margin pressure due to project timing and service mix shifts, particularly within Microgrid projects. Q: Can you remind me what the earnout on RavenVolt is expected to be? A: Earl Ellis, CFO: The total earnout for this year is expected to be about $30 million, with the original purchase being $170 million, making it approximately $280 million in total. Q: How do you plan to achieve the strong cash flow guidance for the second half of the year? A: Earl Ellis, CFO: We have made significant progress in improving cash flow, evidenced by a $138 million improvement quarter-over-quarter. We expect continued improvements in Q3 and Q4, allowing us to meet our full-year normalized free cash flow target of $250 million to $290 million. Q: How are you thinking about organic growth in the B&I business for the second half of the fiscal year? A: Scott Salmirs, CEO: We are optimistic about maintaining positive organic growth in B&I. While there might be some variability, we believe we are now in positive organic growth territory for B&I moving forward. Q: Can you provide more details on the M&D segment's strategy and its potential impact? A: Scott Salmirs, CEO: We are expanding our service offerings beyond traditional cleaning and maintenance to include material handling and test and balancing services. This strategy is being applied to multiple clients and is expected to create more strategic value and stickiness, particularly in sectors like semiconductors and automotive. Q: What is causing the project delays in ATS, and when do you expect normalization? A: Earl Ellis, CFO: The delays are primarily due to customer approval processes. ATS typically sees more activity in the second half of the year, and we expect margins to normalize to 9% to 10% as delayed projects resume. Q: How is ABM positioned to win in prime office markets? A: Scott Salmirs, CEO: ABM is well-positioned due to our execution ability, strong client relationships, and extensive experience in prime office markets. Our scale, client base, and technology investments give us a competitive edge, allowing us to capture a greater market share. Q: Can you discuss the potential acquisition pipeline and current market attractiveness? A: Earl Ellis, CFO: The M&A pipeline is robust, with increased activity from private equity firms looking to monetize portfolio companies. We are focused on acquisitions that enhance our strategic value and client stickiness, particularly in sectors like M&D. Q: What are the regional differences in activity levels within B&I? A: Scott Salmirs, CEO: There are regional variations, with some areas like Century City in LA booming, while others like Downtown LA lag. San Francisco is seeing a resurgence due to AI investments, and New York City is experiencing high activity levels. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
4 days ago
- Business
- Yahoo
Why ABM (ABM) Stock Is Down Today
Shares of facility services provider ABM Industries (NYSE:ABM) fell 10.4% in the afternoon session after the company reported mixed first quarter 2025 (fiscal Q2) results as its full-year EPS guidance slightly missed. On the other hand, ABM beat analysts' organic revenue and EBITDA estimates. Market sentiment may remain cautious, especially with cash flow still under pressure as the company works through its ERP system transition. Overall, this was a softer quarter. The shares closed the day at $46.62, down 9% from previous close. The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy ABM? Access our full analysis report here, it's free. ABM's shares are not very volatile and have only had 7 moves greater than 5% over the last year. Moves this big are rare for ABM and indicate this news significantly impacted the market's perception of the business. The biggest move we wrote about over the last year was 3 months ago when the stock dropped 9.3% on the news that the company reported underwhelming fourth quarter 2024 results: Sales were roughly in line, but the company recorded a significant increase in cash burn. . The key issue for the quarter was a sharp decline in free cash flow, which fell to negative $122.9 million due to temporary disruptions from the company's new enterprise resource planning (ERP) system. Management expects these issues to normalize later in the year. Looking ahead, the company raised the lower end of its full-year adjusted EPS guidance. Adjusted EBITDA margin guidance remained unchanged at 6.3% to 6.5%. Overall, this was a challenging quarter despite the improved guidance. ABM is down 8.8% since the beginning of the year, and at $46.61 per share, it is trading 20.5% below its 52-week high of $58.61 from November 2024. Investors who bought $1,000 worth of ABM's shares 5 years ago would now be looking at an investment worth $1,268. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.
Yahoo
4 days ago
- Business
- Yahoo
ABM Industries (ABM) Q2 Earnings: Taking a Look at Key Metrics Versus Estimates
For the quarter ended April 2025, ABM Industries (ABM) reported revenue of $2.11 billion, up 4.6% over the same period last year. EPS came in at $0.86, compared to $0.87 in the year-ago quarter. The reported revenue represents a surprise of +2.24% over the Zacks Consensus Estimate of $2.07 billion. With the consensus EPS estimate being $0.87, the EPS surprise was -1.15%. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Here is how ABM Industries performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Revenues- Business & Industry: $1.02 billion versus the three-analyst average estimate of $1 billion. The reported number represents a year-over-year change of +2.6%. Revenues- Aviation: $260.10 million versus the three-analyst average estimate of $260.07 million. The reported number represents a year-over-year change of +9.2%. Revenues- Education: $227.80 million versus the three-analyst average estimate of $229.60 million. The reported number represents a year-over-year change of +1%. Revenues- Manufacturing & Distribution: $398.10 million compared to the $380.52 million average estimate based on three analysts. The reported number represents a change of +2.4% year over year. Revenues- Technical Solutions: $210.20 million compared to the $224.17 million average estimate based on three analysts. The reported number represents a change of +19.3% year over year. Operating profit- Aviation: $16.50 million versus the three-analyst average estimate of $18.70 million. Operating profit- Business & Industry: $83 million versus the three-analyst average estimate of $86.81 million. Operating profit (loss)- Manufacturing & Distribution: $39.90 million versus the three-analyst average estimate of $47.43 million. Operating profit- Education: $13.80 million versus the three-analyst average estimate of $14.86 million. Operating profit- Technical Solutions: $13.40 million versus $19.22 million estimated by three analysts on average. Operating profit (loss)- Corporate: -$82.90 million compared to the -$101.64 million average estimate based on two analysts. View all Key Company Metrics for ABM Industries here>>>Shares of ABM Industries have returned +1% over the past month versus the Zacks S&P 500 composite's +5.3% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ABM Industries Incorporated (ABM) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
