ABM Industries Incorporated ABM reported impressive fourth-quarter fiscal 2024 results, wherein earnings per share (EPS) and revenues beat the Zacks Consensus Estimate.

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The stock price has not witnessed any significant impact of the earnings beat since the company released results on Dec. 18.

ABM’s EPS (excluding $1.1 from non-recurring items) was 90 cents, which outpaced the Zacks Consensus Estimate by 4.7% while declining 10.9% on a year-over-year basis. Total revenues of $2.2 billion surpassed the consensus mark by 4.3% and increased 4% from the year-ago quarter.

The company’s shares have gained 12.5% in the past year, underperforming the rally of the industry by a slight margin.

ABM’s Segmental Revenues

Technical Solutions gained 34.9% from fourth-quarter fiscal 2023 to $257.4 million. The metric outpaced our estimate of $212.2 million. Strong microgrid project activity and growth in ABM’s critical business fueled this segment.

The Aviation segment’s revenues increased 11.4% from the year-ago quarter to $276.5 million and beat our estimate of $250 million. Strong travel markets and wins from airport and airline businesses drove this segment’s revenues.

The Education segment’s revenues were $230 million, a marginal rise from the year-ago quarter. It missed our estimate by a slight margin. ABM onboarded new clients, which drove this segment’s revenues.

Revenues from the Manufacturing & Distribution segment decreased to $387.7 million, surpassing our expectations by a slight margin. This segment’s revenues were driven by the rebalancing of work by a large e-commerce customer and the exit of a sizable client that failed to meet the company’s financial hurdles.

The Business & Industry segment’s revenues declined by a slight margin on a year-over-year basis to $1 billion and outpaced our estimate of $991.9 million.

Profitability Performance of ABM Industries

Adjusted EBITDA was $128 million, down 11% from the year-ago quarter. The adjusted EBITDA margin was 6.2%, decreasing 60 basis points from fourth-quarter fiscal 2023.

ABM’s Balance Sheet & Cash Flow

ABM Industries exited fourth-quarter fiscal 2024 with cash and cash equivalents of $64.6 million compared with $86.3 million at the end of the preceding quarter. The long-term debt (net) was $1.3 billion flat in the third quarter of fiscal 2024. Net cash generated by operating activities was $30.3 million for the quarter. The free cash flow amounted to $15.5 million.

ABM Industries’ FY25 Guidance

The company raised its EPS guidance for fiscal 2025. ABM expects an adjusted EPS of $3.6-$3.8 compared with the preceding quarter’s view of $3.48-$3.55. The mid-point of the guided range ($3.7) is in line with the Zacks Consensus Estimate.

ABM currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Earnings Snapshot of ABM’s Peers

Green Dot Corporation GDOT reported mixed third-quarter 2024 results.

GDOT’s quarterly earnings per share (excluding 28 cents from non-recurring items) of 13 cents missed the consensus estimate by 23.5% and declined 7.1% from the year-ago quarter. Revenues of $406 million beat the Zacks Consensus Estimate by 6.4% and increased 15% on a year-over-year basis.

TransUnion TRU posted impressive third-quarter 2024 results.

TRU’s quarterly adjusted earnings (adjusting 69 cents from non-recurring items) of $1 per share surpassed the consensus mark by 2% and increased 14.3% on a year-over-year basis. Total revenues of $1.1 billion outpaced the consensus mark by 2.2% and increased 12% from the year-ago quarter.

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