ABM Industries (NYSE:ABM) Announces Earnings Results

Key Points

• Earnings miss: ABM reported $0.83 EPS for the quarter, missing the $0.87 analyst consensus by $0.04; the company posted a net margin of 1.86% and a return on equity of 11.96%.
• Dividend increase: ABM raised its quarterly dividend to $0.29 (annualized $1.16), implying a ~2.7% yield and a payout ratio of about 44.8%.
• Insider sale and cautious analyst view: COO Rene Jacobsen sold 31,034 shares (~37.5% reduction) for $1.37M, while analysts hold a consensus "Hold" rating with a $50.67 target price.

ABM Industries (NYSE:ABM - Get Free Report) posted its quarterly earnings data on Tuesday. The business services provider reported $0.83 EPS for the quarter, missing analysts' consensus estimates of $0.87 by ($0.04), FiscalAI reports. ABM Industries had a net margin of 1.86% and a return on equity of 11.96%.

ABM Industries Stock Performance

Shares of ABM opened at $43.25 on Tuesday. The company has a market capitalization of $2.53 billion, a PE ratio of 16.70 and a beta of 0.73. The company has a debt-to-equity ratio of 0.86, a quick ratio of 1.48 and a current ratio of 1.48. The company's 50 day moving average price is $44.80 and its 200 day moving average price is $44.84. ABM Industries has a 52 week low of $40.00 and a 52 week high of $54.47.

ABM Industries Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Monday, February 2nd. Investors of record on Wednesday, January 14th were given a dividend of $0.29 per share. The ex-dividend date of this dividend was Wednesday, January 14th. This is a boost from ABM Industries's previous quarterly dividend of $0.27. This represents a $1.16 dividend on an annualized basis and a yield of 2.7%. ABM Industries's payout ratio is presently 44.79%.

Insider Transactions at ABM Industries

In other ABM Industries news, COO Rene Jacobsen sold 31,034 shares of ABM Industries stock in a transaction on Tuesday, January 13th. The shares were sold at an average price of $44.12, for a total transaction of $1,369,220.08. Following the completion of the sale, the chief operating officer owned 51,714 shares of the company's stock, valued at $2,281,621.68. This trade represents a 37.50% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. 0.90% of the stock is currently owned by insiders.

Hedge Funds Weigh In On ABM Industries

A number of hedge funds have recently modified their holdings of the stock. Natixis Advisors LLC raised its holdings in shares of ABM Industries by 2.1% during the fourth quarter. Natixis Advisors LLC now owns 11,199 shares of the business services provider's stock worth $474,000 after acquiring an additional 231 shares in the last quarter. Mackenzie Financial Corp grew its stake in ABM Industries by 4.2% in the third quarter. Mackenzie Financial Corp now owns 6,442 shares of the business services provider's stock valued at $297,000 after purchasing an additional 259 shares in the last quarter. Royal Bank of Canada increased its position in ABM Industries by 0.4% in the 1st quarter. Royal Bank of Canada now owns 86,571 shares of the business services provider's stock worth $4,100,000 after purchasing an additional 312 shares during the last quarter. Daiwa Securities Group Inc. raised its stake in shares of ABM Industries by 3.0% during the 4th quarter. Daiwa Securities Group Inc. now owns 10,822 shares of the business services provider's stock worth $458,000 after purchasing an additional 320 shares in the last quarter. Finally, Amundi raised its stake in shares of ABM Industries by 4.1% during the 4th quarter. Amundi now owns 12,097 shares of the business services provider's stock worth $512,000 after purchasing an additional 481 shares in the last quarter. 91.62% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

Several equities research analysts recently commented on ABM shares. Weiss Ratings restated a "hold (c)" rating on shares of ABM Industries in a research report on Wednesday, January 21st. UBS Group reissued a "neutral" rating and set a $51.00 target price (down from $55.00) on shares of ABM Industries in a research note on Thursday, December 18th. Truist Financial restated a "hold" rating and issued a $47.00 target price (down from $58.00) on shares of ABM Industries in a report on Wednesday, January 21st. Finally, Wall Street Zen cut ABM Industries from a "buy" rating to a "hold" rating in a research report on Saturday, December 13th. Four investment analysts have rated the stock with a Hold rating, According to data from MarketBeat.com, ABM Industries presently has a consensus rating of "Hold" and a consensus target price of $50.67.

About ABM Industries

ABM Industries Incorporated is a leading provider of integrated facility services, offering a comprehensive suite of solutions designed to support the operation, maintenance and enhancement of commercial properties. The company's core services include janitorial and custodial maintenance, HVAC and mechanical systems support, electrical and lighting solutions, and energy optimization. Additional offerings span parking management, security services, landscaping, and specialized support such as technical solutions and sustainability consulting.

Serving a diverse range of markets, ABM caters to clients in commercial real estate, aviation, healthcare, manufacturing, education, government entities, and technology campuses.

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