ABM Industries (ABM) Tops Q3 EPS by 33c, Revenues Miss

ABM Industries (NYSE: ABM) reported Q3 EPS of $0.75, $0.33 better than the analyst estimate of $0.42. Revenue for the quarter came in at $1.39 billion versus the consensus estimate of $1.47 billion.

• Strong Operational and Financial Execution Through COVID-19
• GAAP Continuing EPS Growth to $0.83; Adjusted Continuing EPS Growth to $0.75
• Quarterly Cash Flow from Operations Exceeds $130 Million

Scott Salmirs, President and Chief Executive Officer of ABM Industries commented, “The health and safety of our employees and clients remained our top priority during our first full quarter of the COVID-19 pandemic. I am so proud of our organization for continuing to demonstrate our fortitude as an essential service provider during these extraordinary times. Throughout the quarter, ABM continued to be a critical part of our clients’ plans to protect their people and spaces with our COVID-related services throughout their facilities.”

Mr. Salmirs continued, “We successfully navigated this challenging environment through higher margin work orders and by managing labor efficiently which led to our strong results. We continue to position our business for the future by marketing our EnhancedCleanTM program, which we believe is an important component of our value proposition. Additionally, we generated solid cash flow by maintaining our acute focus on liquidity through strategic working capital management."

Guidance

Due to the extraordinary and evolving nature of the COVID-19 pandemic, it remains difficult for the Company to predict an accurate fiscal 2020 guidance outlook range.

Mr. Salmirs concluded, “Our diversified client base has enabled us to navigate the impacts COVID-19 has had on our business segments. While we are encouraged by the improving trends we saw during the quarter, a great degree of uncertainty remains with recoveries, re-openings and resurgences at different stages across the country. Despite this unpredictable period, we are committed to driving the momentum we experienced during the third quarter, while managing the financial and operational elements within our control. As our results have demonstrated, our service excellence remains unparalleled and we are focused on leveraging our strengths to enable our organization, our clients and our communities to emerge from this pandemic even stronger.”

For earnings history and earnings-related data on ABM Industries (ABM) click here.

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