The 10-second takeaway
For the quarter ended April 30 (Q2), ABM Industries missed estimates on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue was unchanged and GAAP earnings per share contracted significantly.
Margins dropped across the board.
ABM Industries reported revenue of $1.06 billion. The three analysts polled by S&P Capital IQ predicted revenue of $1.09 billion on the same basis. GAAP reported sales were 0.3% lower than the prior-year quarter's $1.06 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 $0.30. The five earnings estimates compiled by S&P Capital IQ predicted $0.30 per share. GAAP EPS of $0.21 for Q2 were 19% lower than the prior-year quarter's $0.26 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 10.3%, 10 basis points worse than the prior-year quarter. Operating margin was 1.8%, 70 basis points worse than the prior-year quarter. Net margin was 1.1%, 20 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.11 billion. On the bottom line, the average EPS estimate is $0.43.
Next year's average estimate for revenue is $4.39 billion. The average EPS estimate is $1.42.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on ABM Industries is hold, with an average price target of $26.50.
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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.