The 10-second takeaway
For the quarter ended Jan. 31 (Q1), ABM Industries met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share improved significantly.
Margins grew across the board.
ABM Industries booked revenue of $1.07 billion. The two analysts polled by S&P Capital IQ expected net sales of $1.07 billion on the same basis. GAAP reported sales were 4.3% higher than the prior-year quarter's $1.03 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.22. The four earnings estimates compiled by S&P Capital IQ predicted $0.22 per share on the same basis. GAAP EPS of $0.20 for Q1 were 25% higher than the prior-year quarter's $0.16 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 10.0%, 10 basis points better than the prior-year quarter. Operating margin was 1.7%, 10 basis points better than the prior-year quarter. Net margin was 1.0%, 20 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.09 billion. On the bottom line, the average EPS estimate is $0.30.
Next year's average estimate for revenue is $4.38 billion. The average EPS estimate is $1.43.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on ABM Industries is outperform, with an average price target of $26.00.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.