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ABM Industries surges 7% on Q3 earnings beat, raised guidance

EditorRachael Rajan
Published 06/09/2024, 13:12
© Reuters.
ABM
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NEW YORK - ABM Industries (NYSE:ABM) saw its shares jump nearly 7% Friday after the facility solutions provider reported third quarter earnings that topped analyst estimates and raised its full-year outlook.


ABM posted adjusted earnings per share of $0.94 for the fiscal third quarter, exceeding the consensus forecast of $0.86. Revenue grew 3.3% YoY to $2.1 billion, also beating expectations of $2.04 billion.


The company's top-line growth was led by its Technical Solutions segment, which saw revenues surge 25% YoY, driven by significant growth in its microgrid service line. The Aviation segment also performed strongly with 13% YoY revenue growth.


"ABM's strong third quarter performance is further validation that our strategy is working," said Scott Salmirs, President & CEO. "Our investments in the energy resiliency markets, particularly in microgrids, which grew significantly, as well as those investments in technology, including tools that improve labor efficiency and our go-to-market approach, helped us deliver another quarter of solid organic growth on an enterprise level and resilient margins."


Looking ahead, ABM raised its fiscal 2024 adjusted EPS guidance to a range of $3.48 to $3.55, up from its previous outlook of $3.40 to $3.50.


The company's adjusted EBITDA increased 2% YoY to $128.1 million in Q3, while adjusted EBITDA margin held steady at 6.4%.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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