ABM Industries (NYSE:ABM) Updates FY 2025 Earnings Guidance

Key Points

• ABM Industries announced its FY 2025 earnings guidance, projecting earnings per share (EPS) of $3.650, which falls short of the consensus estimate of $3.740.
• The company recently declared a quarterly dividend of $0.265 per share, with a dividend yield of 2.2% and a payout ratio of 85.48%.
• Several analysts upgraded their ratings on ABM Industries, with new price targets ranging from $54.00 to $58.00, reflecting a consensus rating of "Buy".

ABM Industries (NYSE:ABM - Get Free Report) issued an update on its FY 2025 earnings guidance on Friday morning. The company provided earnings per share guidance of 3.650-3.650 for the period, compared to the consensus earnings per share estimate of 3.740. The company issued revenue guidance of -.

ABM Industries Price Performance

ABM Industries stock traded up $0.17 during trading on Friday, reaching $48.27. The company had a trading volume of 2,396,971 shares, compared to its average volume of 549,659. The firm's 50-day simple moving average is $48.06 and its 200 day simple moving average is $48.46. ABM Industries has a 1-year low of $40.85 and a 1-year high of $59.78. The firm has a market capitalization of $3.01 billion, a PE ratio of 26.23 and a beta of 0.80. The company has a debt-to-equity ratio of 0.82, a quick ratio of 1.55 and a current ratio of 1.49.

ABM Industries (NYSE:ABM - Get Free Report) last released its quarterly earnings results on Friday, September 5th. The business services provider reported $0.82 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.95 by ($0.13). ABM Industries had a net margin of 1.34% and a return on equity of 12.12%. The company had revenue of $2.22 billion during the quarter, compared to analyst estimates of $2.16 billion. During the same period in the prior year, the business posted $0.94 EPS. ABM Industries's revenue was up 6.2% compared to the same quarter last year. ABM Industries has set its FY 2025 guidance at 3.650-3.650 EPS. As a group, equities research analysts anticipate that ABM Industries will post 3.71 earnings per share for the current fiscal year.

ABM Industries Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, November 3rd. Shareholders of record on Thursday, October 2nd will be paid a dividend of $0.265 per share. This represents a $1.06 annualized dividend and a yield of 2.2%. The ex-dividend date of this dividend is Thursday, October 2nd. ABM Industries's payout ratio is 57.61%.

ABM Industries announced that its Board of Directors has initiated a stock repurchase program on Friday, September 5th that allows the company to buyback $150.00 million in outstanding shares. This buyback authorization allows the business services provider to reacquire up to 5% of its shares through open market purchases. Shares buyback programs are generally an indication that the company's leadership believes its stock is undervalued.

Wall Street Analysts Forecast Growth

Several equities research analysts have issued reports on the stock. Truist Financial raised shares of ABM Industries from a "hold" rating to a "buy" rating and lifted their target price for the stock from $55.00 to $58.00 in a research note on Wednesday, July 2nd. Wall Street Zen cut shares of ABM Industries from a "buy" rating to a "hold" rating in a research note on Saturday, July 26th. Robert W. Baird raised shares of ABM Industries from a "neutral" rating to an "outperform" rating and set a $56.00 target price on the stock in a research note on Monday, June 9th. Baird R W raised shares of ABM Industries from a "hold" rating to a "strong-buy" rating in a research note on Monday, June 9th. Finally, UBS Group raised shares of ABM Industries from a "neutral" rating to a "buy" rating and lifted their target price for the stock from $50.00 to $54.00 in a research note on Monday, June 9th. One research analyst has rated the stock with a Strong Buy rating and three have given a Buy rating to the company's stock. Based on data from MarketBeat.com, the stock has an average rating of "Buy" and an average target price of $56.00.

Insider Activity

In other news, Director Thomas M. Gartland sold 3,711 shares of the business's stock in a transaction dated Friday, June 13th. The shares were sold at an average price of $45.52, for a total transaction of $168,924.72. Following the transaction, the director owned 30,958 shares of the company's stock, valued at approximately $1,409,208.16. The trade was a 10.70% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, COO Rene Jacobsen sold 17,250 shares of the business's stock in a transaction dated Monday, July 7th. The shares were sold at an average price of $48.03, for a total transaction of $828,517.50. Following the transaction, the chief operating officer directly owned 71,256 shares in the company, valued at approximately $3,422,425.68. The trade was a 19.49% decrease in their position. The disclosure for this sale can be found here. Insiders own 0.90% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the company. Canada Pension Plan Investment Board boosted its position in shares of ABM Industries by 4,636.4% during the 2nd quarter. Canada Pension Plan Investment Board now owns 52,100 shares of the business services provider's stock valued at $2,460,000 after acquiring an additional 51,000 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its holdings in ABM Industries by 2.7% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 36,983 shares of the business services provider's stock valued at $1,752,000 after buying an additional 984 shares during the period. Brevan Howard Capital Management LP raised its holdings in ABM Industries by 121.0% in the 2nd quarter. Brevan Howard Capital Management LP now owns 20,020 shares of the business services provider's stock valued at $945,000 after buying an additional 10,962 shares during the period. Gamco Investors INC. ET AL purchased a new stake in ABM Industries in the 2nd quarter valued at about $687,000. Finally, Quantinno Capital Management LP purchased a new stake in ABM Industries in the 2nd quarter valued at about $530,000. Institutional investors and hedge funds own 91.62% of the company's stock.

About ABM Industries

ABM Industries Incorporated, through its subsidiaries, engages in the provision of integrated facility, infrastructure, and mobility solutions in the United States and internationally. It operates through Business & Industry, Manufacturing & Distribution, Education, Aviation, and Technical Solutions segments.