ABM Industries (ABM) wins acquisitions amid high costs – December 17, 2021

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ABM Industries Inc.‘s (ATM Free Report) stocks have had an impressive run on the stock exchanges so far this year. The stock has appreciated 9% in the same period compared to the 15.4% drop in the industry to which it belongs.

Image source: Zacks Investment Research

The company recently reported adjusted earnings from continuing operations for the fourth quarter of fiscal 2021 of 85 cents per share, beating the consensus bar of 6.3% and increasing 23.2% year-on-year. other. Total revenue of $ 1.69 billion was 4.7% above the consensus estimate and was up 14.2% from last year’s level.

How is ABM Industries doing?

ABM Industries’ revenue growth is supported by the strength of the Aviation, Technical Solutions and Enterprise & Industry business segments. Greater customer demand for higher margin COVID-related work orders, effective management of direct labor – especially in business and industry and aviation – and a favorable mix of activities in aviation and technical solutions have benefited the results of the company.

ABM Industries’ strategy involves growth through strategic acquisitions while maintaining desirable profit margins. The acquisition of Able Services strengthened the engineering and technical services of ABM Industries and broadened its sustainable development and energy efficiency offerings, its main activities and its key geographic areas. The acquisition of GCA Services Group has strengthened the long-term operational and financial position of the company. The integration of GCA is complete and makes a significant contribution to the overall operating results of ABM Industries, primarily in the Technology and Manufacturing, Commerce and Industry and Education segments.

ABM Industries sees increase in overall expenses due to increased investments in EnhancedClean, other pandemic-related projects and certain corporate initiatives, and increased expenses for bad debt, legal fees and settlements as well as medical and dental insurance costs. For the fourth quarter of fiscal 2021, selling, general and administrative expenses of $ 180.9 million increased 16.6% year over year.

Zacks rank and actions to consider

ABM Industries currently holds a Zacks Rank # 3 (Hold).

You can see The full list of Zacks # 1 Rank (Strong Buy) stocks today here.

Some top-ranked stocks in the broader business services sector include Budget Notice (AUTO Free report), Cross Country Health Care (CCRN Free report) ) and Charles River Associates (CRA Free report) ). While Avis Budget and Cross Country Healthcare have a Zacks # 1 rank, Charles River Associates currently holds a Zacks # 2 (Buy) rank.

Avis Budget has an expected profit growth rate of 420.6% for the current year. The company has a surprise earnings for the last four quarters of 76.9% on average.

Avis Budget shares have jumped 744.3% in the past year. The company shows long-term profit growth of 18.8%.

Cross Country Healthcare has an expected profit growth rate of 447.8% for the current year. The company has a surprise of 75% on average over the last four quarters.

Shares of Cross Country Healthcare have jumped 201% in the past year. The company shows a long-term profit growth rate of 21.5%.

Charles River Associates has an expected earnings growth rate of 61.2% for the current year. The company has a surprise earnings for the last four quarters of 51%, on average.

Charles River shares have jumped 119.3% in the past year. The company shows long-term profit growth of 15.5%.


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