Facility services provider ABM Industries (NYSE: ABM) will be reporting earnings this Friday before market open. Here’s what to expect.
ABM beat analysts’ revenue expectations last quarter, reporting revenues of $2.24 billion, up 6.1% year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ organic revenue estimates but a significant miss of analysts’ EPS estimates.
Is ABM a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting ABM’s revenue to grow 5.2% year on year, in line with the 4.6% increase it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. ABM rarely misses Wall Street’s revenue estimates.
Looking at ABM’s peers in the industrial & environmental services segment, some have already reported their Q1 results, giving us a hint as to what we can expect. CECO Environmental delivered year-on-year revenue growth of 16.5%, beating analysts’ expectations by 4.1%, and Tetra Tech reported a revenue decline of 4.9%, topping estimates by 4.8%. CECO Environmental traded up 11.6% following the results while Tetra Tech was also up 1.4%.
Read our full analysis of CECO Environmental’s results here and Tetra Tech’s results here.
There has been positive sentiment among investors in the industrial & environmental services segment, with share prices up 5.8% on average over the last month. ABM is down 3.7% during the same time and is heading into earnings with an average analyst price target of $51.43 (compared to the current share price of $39.18).
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