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What: Shares of facilities management company ABM Industries
So what: The company reported a tiny increase in revenue to $1.08 billion and a 54.9% decline in revenue to $12.6 million, or an adjusted $0.37 per share. Analysts had expected $0.42 per share in earnings and, to top off the disappointment, management lowered 2012 adjusted EPS outlook to $1.36-$1.42 per share.
Now what: The company did announce a $50 million share buyback but, considering the direction earnings are headed, I think there might be better uses of the cash. I just can't buy the discount today given the direction of earnings and the anemic revenue growth. The stock is just too high of a price at 13.4 times 2012's earnings.
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Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.
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