Core Viewpoint - ABM Industries reported strong fourth-quarter fiscal 2024 results, with earnings and revenues exceeding estimates, indicating positive momentum leading into fiscal 2025 [2][11]. Financial Performance - Earnings per share (EPS) for Q4 fiscal 2024 was 90 cents, surpassing the Zacks Consensus Estimate by 4.7%, although it represented a decline of 10.9% year-over-year [2]. - Total revenues reached $2.2 billion, exceeding the consensus mark by 4.3% and increasing by 4% compared to the previous year [2]. Segmental Revenues - Technical Solutions segment revenues surged by 34.9% year-over-year to $257.4 million, outperforming estimates of $212.2 million, driven by strong microgrid project activity [3]. - Aviation segment revenues rose by 11.4% year-over-year to $276.5 million, exceeding estimates of $250 million, supported by robust travel markets [3]. - Education segment revenues were $230 million, showing a marginal increase year-over-year but slightly missing estimates [4]. - Manufacturing & Distribution segment revenues decreased to $387.7 million, slightly surpassing expectations, influenced by client rebalancing [5]. - Business & Industry segment revenues declined slightly year-over-year to $1 billion, exceeding estimates of $991.9 million [5]. Profitability Metrics - Adjusted EBITDA for Q4 was $128 million, down 11% from the previous year, with an adjusted EBITDA margin of 6.2%, a decrease of 60 basis points year-over-year [6]. Balance Sheet & Cash Flow - At the end of Q4 fiscal 2024, cash and cash equivalents stood at $64.6 million, down from $86.3 million in the previous quarter [7]. - Long-term debt remained stable at $1.3 billion, while net cash generated from operating activities was $30.3 million, and free cash flow amounted to $15.5 million [7]. Future Guidance - The company raised its EPS guidance for fiscal 2025 to a range of $3.6-$3.8, up from the previous estimate of $3.48-$3.55 [8]. Market Sentiment - Recent estimates for ABM Industries have trended upward, reflecting positive market sentiment and expectations for above-average returns in the coming months [9][11]. - The stock currently holds a strong Growth Score of A and a value grade of A, placing it in the top 20% for investment strategies [10].

Core Viewpoint - ABM Industries has shown strong performance over the past year, with potential to maintain its momentum in the near term [1] Performance Summary - ABM's stock has increased by 31% over the past year, outperforming the industry average of 14% and the Zacks S&P 500 composite's rise of 25.4% [2] Financial Metrics - The Zacks Consensus Estimate for ABM's fiscal 2025 revenues is $8.6 billion, reflecting a year-over-year increase of 2.5%. For fiscal 2026, the estimate is $8.9 billion, indicating a growth of 3.3% [6] - The consensus estimate for fiscal 2025 earnings is $3.7 per share, suggesting a year-over-year rise of 3.9%. For fiscal 2026, the estimate is $4.1, implying a growth of 10.6% [6] Earnings Performance - ABM has a positive earnings surprise history, exceeding the Zacks Consensus Estimate in the past four quarters with an average surprise of 11.6% [5] Strategic Initiatives - The company launched the ELEVATE strategic plan in 2021, aimed at enhancing its industry leadership and expanding core offerings [7][8] - In 2024, ABM introduced ABM Clean, an AI-based application for the aviation sector, and ABM Performance Solutions, a tech-driven service that integrates data for improved client results [9] Shareholder Returns - ABM distributed dividends of $51.9 million, $57.5 million, and $56.5 million in fiscal years 2022, 2023, and 2024, respectively. Additionally, share repurchases amounted to $97.5 million, $138.1 million, and $56.1 million during the same period [10]

Company Overview - ABM Industries Incorporated (ABM) is positioned as an intriguing investment choice due to solid earnings estimate revisions and a favorable Zacks Industry Rank [1][3]. - The company has experienced positive earnings estimate revisions, indicating increased analyst confidence in its short and long-term prospects [3][4]. Industry Analysis - The Building Products - Maintenance Service industry is currently ranked 11 out of over 250 industries by Zacks, suggesting a strong position relative to other segments [2]. - A rising trend in this industry is likely benefiting multiple companies, indicating a broad positive movement within the sector [2]. Earnings Estimates - Over the past month, ABM's current quarter earnings estimates increased from $0.76 to $0.79 per share, while current year estimates rose from $3.65 to $3.71 per share [4]. - These revisions have contributed to ABM earning a Zacks Rank 2 (Buy), highlighting its solid market position [4][5].

Company Overview - ABM Industries is headquartered in New York and operates in the Business Services sector, with a year-to-date price change of -0.12% [3] - The company currently pays a dividend of $0.22 per share, resulting in a dividend yield of 2.07%, which is significantly higher than the industry average of 0.71% and the S&P 500's yield of 1.57% [3] Dividend Performance - The annualized dividend of ABM Industries is $1.06, reflecting a 17.8% increase from the previous year [4] - Over the past five years, ABM has increased its dividend four times, achieving an average annual increase of 5.31% [4] - The current payout ratio stands at 25%, indicating that the company distributes 25% of its trailing 12-month earnings per share as dividends [4] Earnings Growth Expectations - For the fiscal year 2025, the Zacks Consensus Estimate projects earnings of $3.69 per share, which corresponds to a year-over-year growth rate of 3.36% [5] Investment Appeal - ABM Industries is considered an attractive dividend investment, supported by a Zacks Rank of 2 (Buy), indicating a compelling investment opportunity [7]

Company Performance - ABM Industries reported impressive fourth-quarter fiscal 2024 results, with earnings per share (EPS) of 90 cents, surpassing the Zacks Consensus Estimate by 4.7% but declining 10.9% year-over-year [15][16] - Total revenues for ABM reached $2.2 billion, exceeding the consensus mark by 4.3% and increasing 4% from the previous year [16] - Adjusted EBITDA was $128 million, down 11% from the year-ago quarter, with an adjusted EBITDA margin of 6.2%, a decrease of 60 basis points from the previous quarter [6] Segment Performance - The Technical Solutions segment saw revenues increase by 34.9% to $257.4 million, outperforming estimates due to strong microgrid project activity [4] - The Manufacturing & Distribution segment's revenues decreased to $387.7 million, slightly surpassing expectations, driven by a large ecommerce customer's rebalancing of work [5] - The Education segment's revenues were $230 million, a marginal rise from the year-ago quarter, but missed estimates [11] - The Aviation segment's revenues increased by 11.4% year-over-year to $276.5 million, beating estimates due to strong travel markets [17] - The Business & Industry segment's revenues declined slightly year-over-year to $1 billion, but outperformed estimates [18] Financial Position - ABM exited the fourth quarter with cash and cash equivalents of $64.6 million, down from $86.3 million in the previous quarter, while long-term debt remained flat at $1.3 billion [12] - Net cash generated by operating activities was $30.3 million for the quarter, with free cash flow amounting to $15.5 million [12] Guidance - The company raised its EPS guidance for fiscal 2025 to an adjusted EPS of $3.6-$3.8, aligning the mid-point with the Zacks Consensus Estimate [20]

Core Viewpoint - ABM Industries (ABM) has experienced significant selling pressure, resulting in a 12.2% decline in stock price over the past four weeks, but analysts anticipate better earnings than previously predicted, indicating a potential turnaround for the company [1]. Group 1: Technical Analysis - The stock's Relative Strength Index (RSI) is currently at 27.13, indicating that it is in oversold territory, as a reading below 30 typically signifies this condition [3][8]. - The heavy selling of ABM shares appears to be exhausting, suggesting a possible trend reversal as the stock approaches a more balanced supply and demand equilibrium [6]. - The RSI is a momentum oscillator that measures the speed and change of price movements, commonly used to identify oversold conditions [8]. Group 2: Analyst Insights - ABM holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, which supports the potential for a stock turnaround [5]. - There has been a consensus among sell-side analysts to raise earnings estimates for ABM, resulting in a 2.3% increase in the consensus EPS estimate over the last 30 days, which typically correlates with price appreciation in the near term [7].

ABM Industries (ABM) has been beaten down lately with too much selling pressure. While the stock has lost 11.4% over the past four weeks, there is light at the end of the tunnel as it is now in oversold territory and Wall Street analysts expect the company to report better earnings than they predicted earlier.Guide to Identifying Oversold StocksWe use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is oversold. This is a momentum oscillator tha ...

ABM Industries (ABM) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.Individual inve ...

Labor and Employment - The company employs approximately 117,000 persons, and labor shortages, turnover, and labor cost increases could adversely affect financial performance [64] - The company may face challenges in attracting and retaining qualified personnel, which is essential for supporting its business [65] - Approximately 42% of the company's employees were subject to various local collective bargaining agreements, some of which will expire or become subject to renegotiation during 2025 [106] - The company is exposed to risks related to labor, including claims of discrimination and violations of wage and hour requirements, which could lead to substantial liabilities [100] Financial Performance and Risks - A significant portion of the company's growth has been generated by acquisitions, which may continue as part of its growth strategy [90] - The company faces competitive pressures in the facility services market, which could reduce margins and adversely affect financial performance [63] - The company relies on long-term client relationships for profitability, and losing significant clients could negatively impact financial results [70] - Economic conditions, such as high interest rates and changes in consumer goods pricing, could reduce demand for the company's services and adversely affect revenue [80] - Changes in insurance costs or the inability to renew insurance policies could have a material adverse effect on the company's financial position [95] - The company’s ability to generate cash flow is subject to general economic and competitive factors beyond its control, impacting its capacity to service debt and fund operations [110] Legal and Regulatory Compliance - The company is subject to extensive legal and regulatory requirements that could increase compliance costs and limit profitability [101] - The company faces potential adverse effects from unfavorable developments in class actions and lawsuits, which may consume significant financial and managerial resources [99] - The company may incur material withdrawal liabilities from participation in multiemployer pension plans if other employers cease contributions [105] International Operations and Currency Risks - The company is exposed to risks related to international operations, including compliance with complex laws and regulations in jurisdictions outside the United States [74] - The company is primarily exposed to foreign exchange rate risk through its operations in the UK and Ireland, with functional currencies being GBP and EUR respectively [255] - The company intends to remain permanently invested in its foreign operations and does not utilize hedging instruments to mitigate foreign currency exchange risks [255] - If the company's intent regarding international investment changes, it would expect to implement strategies to manage foreign currency risks [255] Cybersecurity and Technology - Cybersecurity threats could disrupt the company's information technology systems, leading to operational disruptions and potential financial losses [84] Debt and Interest Rate Management - As of October 31, 2024, the company had total outstanding borrowings of $1,335.3 million [254] - The company entered into interest rate swap agreements with an underlying notional amount of $695.0 million, fixing interest rates ranging from 1.72% to 3.81% [254] - A 100 basis point increase in SOFR, EURIBOR, and SONIA would decrease future earnings and cash flows by $5.6 million and $5.4 million, respectively [254] - The fair value of the company's interest rate swap agreements was an asset of $13.5 million as of October 31, 2024 [254]

Core Viewpoint - ABM Industries' stock experienced a significant decline of over 7% following its FQ4 earnings release, presenting a potential buying opportunity for dividend growth investors as it approaches a critical support level within its long-term trading range [1][10]. Financial Performance - The Q4 report indicated a contraction in cash flow, earnings, and free cash flow, despite a 4% increase in top-line growth driven by a 32% rise in technical solutions and an 11% increase in aviation [2][6]. - Adjusted earnings were reported at $0.90, which was 400 basis points better than MarketBeat's consensus, indicating sufficient cash flow to maintain capital returns and balance sheet health [7]. Dividend Information - ABM Industries offers a dividend yield of 2.11%, with an annual dividend of $1.06 and a three-year annualized dividend growth rate of 16.61% [2][3]. - The company maintains a low dividend payout ratio of 43.80%, allowing for sustainable annual increases in dividends for many years [3]. Balance Sheet and Leverage - The balance sheet remains strong, with increased debt and total liabilities offset by higher assets, resulting in flat equity and low leverage [4][5]. - Long-term debt leverage is reported to be less than 1x equity, indicating a solid financial position [5]. Market Outlook - The company has optimistic guidance for F2025, expecting growth across all end markets, with adjusted EPS forecasted between $3.60 and $3.80, surpassing analysts' consensus [8]. - Institutional ownership exceeds 90%, providing a strong support base for the stock price, with expectations of continued buying activity from institutions [9]. Technical Analysis - The stock price has rebounded after hitting the critical $50 support level, which is seen as a strong target for technical traders [10]. - A move below this level could be bearish, but the prevailing sentiment suggests institutional support will help maintain the price around $50, potentially leading to a retest of the high end of its trading range near $57.50 [10].