ABM Industries (ABM) Q2 Earnings Beat Estimates, Revenues Miss
ABM Industries Inc. ABM reported mixedsecond-quarter fiscal 2023 results wherein earnings beat the Zacks Consensus Estimate while revenues missed the same.
Adjusted earnings (considering 12 cents from non-recurring items) from continuing operations came in at 90 cents per share, which beat the consensus estimate by 4.7% and increased 1% from last fiscal year’s quarterly figure.
Total revenues of $1.98 billion missed the consensus mark by 1.5% but improved 4.5% from last fiscal year’s quarterly figure. The upside was backed by solid segmental performance, strength from new accounts which came online late last year and the acquisition of RavenVolt. Quarterly revenue growth included 2.3% organic growth and a 2.2% upside from acquisitions.
Segment-Wise Revenues
The Business & Industry segment’s revenues decreased 0.5% from the last fiscal year’s quarterly figure to $998.5 million. Revenues from the Manufacturing & Distribution segment rose 4.5% to $373.2 million and the Aviation segment’s revenues rose 22.2% from the last fiscal year’s quarterly figure to $227.2 million. Technical Solutions and Education segments’ revenues increased 14.6% and 6% from the prior-year fiscal quarter’s levels to $168.4 million and $216.7 million, respectively.
Operating Results
Adjusted EBITDA came in at $137 million, increasing 15.2% from the prior-year period. Adjusted EBITDA margin was at 7.2%, compared with 6.5% reported in the prior-year period.
ABM Industries Incorporated Price, Consensus and EPS Surprise
ABM Industries Incorporated price-consensus-eps-surprise-chart | ABM Industries Incorporated Quote
Operating expenses increased 4.1% from the year-ago figure to $1.72 billion. Selling, general and administrative expenses declined slightly from the year-ago level to $156.6 million.
Balance Sheet & Cash Flow
ABM Industries exited second-quarter fiscal 2023 with cash and cash equivalents of $71.2 million, compared with $87.9 million at the end of the prior fiscal quarter. Long-term debt was $1.4 billion, compared with $1.2 billion at the end of the prior fiscal quarter.
Net cash provided by operating activities totaled $26 million for the reported quarter. Free cash flow came in at $16 million.
2023 Guidance
For fiscal 2023, ABM Industries expects adjusted earnings per share to be in the range of $3.40-$3.60. The midpoint of the guided range ($3.50) lies below the Zacks Consensus Estimate of $3.51. Adjusted EBITDA margin is anticipated to be between 6.5% and 6.8%. Interest expense is expected at around $80 million.
Earnings Snapshot
Equifax EFX reported better-than-expected first-quarter 2023 results. Adjusted earnings (excluding 52 cents from non-recurring items) came in at $1.43 per share, beating the Zacks Consensus Estimate by 4.4% but declining 35.6% from the year-ago figure. Total revenues of $1.3 billion surpassed the consensus estimate by 1.5% but decreased 4.5% on a reported basis from the year-ago figure. The top line was down 3% on a local currency basis.
Omnicom OMC reported better-than-expected first-quarter 2023 results. OMC’s earnings of $1.56 per share beat the Zacks Consensus Estimate by 13%. Earnings per share increased 12.2% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 2.3%. The top line increased 1% year over year.
Fiserv, Inc.FISV reported impressive first-quarter 2023 results, wherein earnings and revenues beat the Zacks Consensus Estimate. Adjusted earnings per share (excluding 69 cents from non-recurring items) of $1.58 increased 12.9% year over year, beating the consensus mark by 1.3%. Adjusted revenues of $4.28 billion beat the consensus estimate by 3% and increased 9.5% year over year.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Omnicom Group Inc. (OMC) : Free Stock Analysis Report
Fiserv, Inc. (FISV) : Free Stock Analysis Report
Equifax, Inc. (EFX) : Free Stock Analysis Report
ABM Industries Incorporated (ABM) : Free Stock Analysis Report
