ABM Industries (NYSE: ABM) reported Q2 EPS of $0.82, $0.11 better than the analyst estimate of $0.71. Revenue for the quarter came in at $1.5 billion versus the consensus estimate of $1.48 billion.

• Strong Operating Income Growth Across All Business Segments
• GAAP Continuing EPS of $0.46 Inclusive of a $0.32 Reserve for an Ongoing Litigation; Adjusted Continuing EPS of $0.82
• Revenue Growth in Key Verticals Offset Continued Soft Aviation Market
• First Half Cash Flow from Operations of $171 Million
• Maintains Full Year GAAP Income Guidance and Raises Full Year Adjusted Income Guidance

Scott Salmirs, President and Chief Executive Officer of ABM Industries, commented, “This was another quarter of significant operating progress for ABM, driven by excellent execution and improved business conditions. We continued to see high work order volumes for virus protection cleaning services in the second quarter. As a leader in facility solutions, ABM-branded services have become increasingly important to our customers, and we expect demand to remain strong in a post-pandemic environment. Favorable second quarter business trends, together with continued efficient labor management, resulted in considerable operating leverage, as expanded margins led to 37% year-over-year growth in adjusted earnings per diluted share on slightly higher revenues.”

Mr. Salmirs continued, “Our success in navigating the challenges of the past year reflects the resilience of our business, the dedication of our team members and the investments we have made in our people and in our capabilities. In the periods ahead, we intend to further invest in our business to better serve our customers and employees and support future growth.”

GUIDANCE:

ABM Industries sees FY2021 EPS of $3.30-$3.50, versus the consensus of $3.18.

As a result of ABM’s strong first half performance and expectations for positive year-over-year comparisons in the second half, the Company is maintaining its guidance for full year fiscal 2021 GAAP income from continuing operations of $2.85 to $3.10 per diluted share, inclusive of the second quarter reserve of $0.32. The company is increasing its guidance for full year 2021 adjusted income from continuing operations to $3.30 to $3.50 per diluted share, from $3.00 to $3.25 previously, while continuing to invest to support future growth.

Mr. Salmirs concluded, “Looking ahead to the second half of 2021, we expect our business to benefit from a strengthening economy and continued strong demand for our services. Although we expect the benefit from labor efficiencies to diminish over time as office occupancy improves, we are confident that our scale, specialized services and holistic approach to providing safety-focused facility solutions differentiate ABM in the marketplace. Our offerings provide continued opportunities for sustainable, profitable growth in the periods ahead. Additionally, our strong balance sheet and liquidity position give us the financial resources to support long term growth initiatives through both organic investments and acquisitions.”

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