The 10-second takeaway
For the quarter ended Oct. 31 (Q4), ABM Industries met expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue increased slightly and GAAP earnings per share expanded significantly.
Gross margins dropped, operating margins expanded, net margins expanded.
ABM Industries booked revenue of $1.09 billion. The three analysts polled by S&P Capital IQ expected a top line of $1.09 billion on the same basis. GAAP reported sales were 0.8% higher than the prior-year quarter's $1.08 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.50. The five earnings estimates compiled by S&P Capital IQ anticipated $0.40 per share. GAAP EPS of $0.50 for Q4 were 47% higher than the prior-year quarter's $0.34 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 11.2%, 10 basis points worse than the prior-year quarter. Operating margin was 3.4%, 10 basis points better than the prior-year quarter. Net margin was 2.5%, 80 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.17 billion. On the bottom line, the average EPS estimate is $0.22.
Next year's average estimate for revenue is $4.70 billion. The average EPS estimate is $1.38.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on ABM Industries is outperform, with an average price target of $25.00.
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