3 Stocks to Watch on Wednesday: ABM Industries, Inc. (ABM), Guidewire Software Inc (GWRE) and Korn/Ferry International (KFY)
It was a strong day for U.S. equities as nine of 11 sectors finished in the green, with materials posting a 1.1% surge as the day’s top dogs. The S&P 500 Index gained 0.3%, the Dow Jones Industrial Average edged a fraction higher and the Nasdaq Composite posted a 0.6% gain by day’s end.
Ahead of Wednesday’s action, several companies reported their quarterly earnings data late Tuesday, including ABM Industries, Inc. (NYSE:ABM), Guidewire Software Inc (NYSE:GWRE) and Korn/Ferry International (NYSE:KFY).
Here’s how they did:
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ABM Industries, Inc. (ABM)
ABM Industries reported on its first quarter of fiscal 2018 Tuesday.
For the period, the company’s income from continuing operations per diluted share grew 50% thanks in part to a one-time tax benefit linked to the changes in the U.S. tax code. Net income surged to $27.8 million, topping the year-ago loss of $56.8 million.
On an adjusted basis, ABM Industries’ earnings came in at $65.1 million, or a margin rate of 4.1%, topping its year-ago adjusted EBITDA of $48.1 million, or a margin rate of 3.6%. Organic revenue grew by 3% thanks in part to business expansions in the company’s Business & Industry and Aviation segments.
The integrated facility solutions provider’s broad-based total revenue growth came in at 19.7%, thanks in part to acquisitive revenue within the Education and Technology & Manufacturing segments.
ABM shares fell 2% after the bell Tuesday.
Guidewire Software Inc (GWRE)
Guidewire Software had strong quarterly results that saw its shares rise late in the day.
The software products for property and casualty insurers provider reported a loss of $45.6 million during its fiscal second-quarter of 2018, below the profit it posted in the same period a year ago. This amounted to a loss of 59 cents per share.
On an adjusted basis, the company’s earnings came in at 33 cents per share, beating the Wall Street consensus estimate of 19 cents per share, according to data compiled by Zacks Investment Research.
Guidewire Software reported revenue of $163.8 million for the period, also topping analysts’ expectations of $154.3 million, according to Zacks. For its current quarter, the company sees revenue in the range of $135 million to $139 million, below the Wall Street guidance of $146.9 million, per Zacks.
For its fiscal year, the company sees earnings in the range of 98 cents to $1.04 per share, while revenue is slated to be between $644 million and $650 million.
GWRE stock gained 2.1% after hours Tuesday.
Korn/Ferry International (KFY)
Korn/Ferry International topped analysts’ guidance in its latest quarterly results.
For its third quarter, the people and organizational advisory company unveiled net income of $27.2 million, or 48 cents per share. On an adjusted basis, the company brought in earnings of 70 cents per share.
Analysts were calling for adjusted earnings of 59 cents per share for Korn/Ferry International, according to estimates of four analysts surveyed by Zacks. Revenue came in at $460.8 million for the period.
On an adjusted basis, the company raked in revenue of $447.6 million, beating the $416.5 million that analysts polled by Zacks were expecting by $31.1 million.
Korn/Ferry International forecasts its fourth-quarter fee revenue to be in the range of $448 million and $462 million, while diluted earnings per share for the period are slated to be between 66 cents and 70 cents.
KFY stock was trading flat after Tuesday’s market close.
As of this writing, Karl Utermohlen did not hold a position in any of the aforementioned securities.
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