) is slated to report its third-quarter fiscal 2012 results after
the closing bell on September 5. The Zacks Consensus Estimate for
the quarter is 42 cents per share, representing an estimated
year-over-year decline of 17.25%. Revenues, as per the Zacks
Consensus Estimate, are $1.09 billion.
ABM INDUSTRIES (ABM): Free Stock Analysis
To read this article on Zacks.com click here.
Second Quarter Synopsis
The company, in second-quarter fiscal 2012, reported adjusted
earnings of 30 cents per share, in line with the Zacks Consensus
Estimate and above the year-ago earnings of 28 cents.
Total revenues were flat year over year at $1.06 billion, missing
the Zacks Consensus Estimate of $1.09 billion. Top-line growth was
negatively affected by delayed start of new contracts along with a
declining contribution from government business.
Estimate Revision Trend
Out of the 5 analysts covering the stock, none have revised their
estimates for the third quarter in either direction over the last 7
and 30 days. A similar trend applies for fiscal 2012.
The Zacks Consensus Estimates remained the same for both the third
quarter and fiscal 2012 over the last 7 and 30 days.
Earnings Surprise History
With respect to earnings surprises, ABM Industries' has topped the
Zacks Consensus Estimate in two of the trailing four quarters while
it met the forecast in other two quarters. The company delivered an
average positive earnings surprise of 5.65% over the preceding four
quarters, implying that it has beaten the Zacks Consensus Estimate
by that measure.
ABM Industries' has been experiencing a positive momentum in its
Facility Solutions division, especially in the energy sector. The
company is now focusing on expanding its efficiency and depth of
operations in the Building and Energy Services Unit, driven by
soaring client demand and new businesses.
However, accounts receivable make up approximately one-third of ABM
Industries' balance sheet. Deterioration in economic conditions
could have an adverse impact on ABM Industries' ability to collect
accounts due from its customers, which may weigh on the company's
ABM Industries' retains a short-term Zacks #3 Rank (Hold). We have
a long-term Neutral recommendation on the stock.