ABM Industries (NYSE:ABM) Inc. has reached an impressive milestone, with its stock price hitting an all-time high of $59.06. This peak reflects a significant surge in the company's market performance, marking a 44.96% increase over the past year. Investors have shown growing confidence in ABM's business model and future prospects, as evidenced by the stock's robust one-year change. The company's ascent to this record price level underscores its strong financial health and the positive sentiment surrounding its operations and growth strategy in the competitive industry landscape.
In other recent news, ABM Industries reported a successful third quarter with earnings that exceeded analyst predictions and subsequently raised its full-year outlook. The company's adjusted earnings per share reached $0.94, surpassing the consensus forecast of $0.86. Additionally, revenue saw a 3.3% year-over-year increase, reaching $2.1 billion and beating expectations of $2.04 billion.
Notably, ABM's Technical Solutions segment led the top-line growth with revenues surging 25% YoY, significantly boosted by its microgrid service line. The Aviation segment also reported strong performance, with a 13% YoY revenue increase.
In light of these developments, ABM has raised its fiscal 2024 adjusted EPS guidance to a range of $3.48 to $3.55, a jump from the previous outlook of $3.40 to $3.50. The company's adjusted EBITDA also saw a 2% YoY increase to $128.1 million in Q3, while the adjusted EBITDA margin remained steady at 6.4%. These recent developments underscore ABM's robust performance and strategic investments in energy resiliency markets and technology.
InvestingPro Insights
ABM Industries Inc .'s stock price achievement is underpinned by several key factors that reflect the company's solid financial footing and promising outlook. Notably, ABM has been actively repurchasing shares, signaling management's confidence in the company's intrinsic value, as highlighted by an InvestingPro Tip. This is complemented by a high shareholder yield and a track record of raising dividends for three consecutive years, with the company maintaining dividend payments for a remarkable 54 years in a row.
From a valuation perspective, ABM trades at a P/E ratio of 14.58, which is considered low relative to its near-term earnings growth. This is further substantiated by a PEG ratio of 0.44 for the last twelve months as of Q2 2024, suggesting that the stock may be undervalued given its earnings growth rate. Additionally, the company's liquid assets exceed its short-term obligations, providing financial stability and flexibility.
InvestingPro Data reveals that ABM has a market cap of $3.52 billion and has experienced revenue growth of 3.29% over the last twelve months as of Q2 2024. Despite concerns over weak gross profit margins, which stand at 13.61%, the company has shown resilience with a strong return of 27.75% over the past year and is trading near its 52-week high, at 97.99% of this peak.
For investors seeking more detailed analysis and additional insights, InvestingPro offers a comprehensive list of tips, with 14 additional tips currently available for ABM Industries Inc. These tips and metrics can be found at https://www.investing.com/pro/ABM, providing a valuable resource for making informed investment decisions.
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