ABM Industries (NYSE:ABM) Reaches New 1-Year Low Following Weak Earnings

Key Points

• New 52-week low after earnings: ABM shares fell to $39.12 mid-day after reporting $0.83 EPS (vs. $0.87 expected) and $2.24B revenue, and the company set FY2026 guidance of $3.85–$4.15 EPS.
• Dividend increase: ABM raised its quarterly payout to $0.29 (annualized $1.16), implying a ~2.8% yield and a payout ratio of about 44.8%.
• Analysts and insider activity: Analysts have trimmed price targets and the consensus rating is "Hold" (avg. target $50.67), while COO Rene Jacobsen sold 31,034 shares and institutional ownership stands near 91.6%.

ABM Industries Incorporated (NYSE:ABM - Get Free Report)'s share price reached a new 52-week low during mid-day trading on Tuesday following a dissappointing earnings announcement. The stock traded as low as $39.12 and last traded at $41.06, with a volume of 191411 shares traded. The stock had previously closed at $43.28.

The business services provider reported $0.83 earnings per share for the quarter, missing the consensus estimate of $0.87 by ($0.04). The business had revenue of $2.24 billion for the quarter, compared to analysts' expectations of $2.19 billion. ABM Industries had a return on equity of 11.96% and a net margin of 1.86%.The firm's quarterly revenue was up 6.1% compared to the same quarter last year. During the same quarter last year, the firm earned $0.87 earnings per share. ABM Industries has set its FY 2026 guidance at 3.850-4.150 EPS.

ABM Industries Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Monday, February 2nd. Investors of record on Wednesday, January 14th were issued a $0.29 dividend. This is a boost from ABM Industries's previous quarterly dividend of $0.27. The ex-dividend date was Wednesday, January 14th. This represents a $1.16 annualized dividend and a yield of 2.8%. ABM Industries's payout ratio is 44.79%.

Analyst Upgrades and Downgrades

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

Insiders Place Their Bets

In other ABM Industries news, COO Rene Jacobsen sold 31,034 shares of ABM Industries stock in a transaction that occurred on Tuesday, January 13th. The stock was sold at an average price of $44.12, for a total transaction of $1,369,220.08. Following the sale, the chief operating officer directly owned 51,714 shares of the company's stock, valued at approximately $2,281,621.68. The trade was a 37.50% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 0.90% of the stock is currently owned by insiders.

Institutional Trading of ABM Industries

Hedge funds have recently modified their holdings of the company. American Century Companies Inc. raised its stake in shares of ABM Industries by 1.5% during the 2nd quarter. American Century Companies Inc. now owns 1,615,135 shares of the business services provider's stock worth $76,251,000 after purchasing an additional 24,638 shares in the last quarter. Nordea Investment Management AB grew its stake in ABM Industries by 1,068.7% in the 3rd quarter. Nordea Investment Management AB now owns 1,606,331 shares of the business services provider's stock valued at $73,297,000 after buying an additional 1,468,887 shares during the last quarter. Prudential Financial Inc. lifted its position in ABM Industries by 7.0% during the second quarter. Prudential Financial Inc. now owns 270,666 shares of the business services provider's stock worth $12,778,000 after acquiring an additional 17,755 shares during the last quarter. Public Sector Pension Investment Board grew its position in shares of ABM Industries by 14.5% in the third quarter. Public Sector Pension Investment Board now owns 242,869 shares of the business services provider's stock valued at $11,201,000 after purchasing an additional 30,761 shares during the last quarter. Finally, Fox Run Management L.L.C. acquired a new stake in ABM Industries during the 2nd quarter worth approximately $613,000. 91.62% of the stock is currently owned by institutional investors and hedge funds.

ABM Industries Price Performance

The company has a 50 day moving average of $44.80 and a 200-day moving average of $44.84. The firm has a market capitalization of $2.41 billion, a P/E ratio of 15.76 and a beta of 0.73. The company has a current ratio of 1.48, a quick ratio of 1.48 and a debt-to-equity ratio of 0.86.

ABM Industries Company Profile

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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