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ABM Industries Extends Janitorial Services Alliance With AEG

Zacks Equity Research

ABM Industries Incorporated ABM announced renewal of its partnership with AEG — one of the largest sports and live entertainment companies across the globe.

The partnership extension means that ABM Industries will continue to offer janitorial services at AEG’s five venues in California — STAPLES Center, Microsoft Theater, Pechanga Arena San Diego, Dignity Health Sports Park and L.A. LIVE.

Rene Jacobsen, executive vice president and president of Business & Industry at ABM, stated, “In renewing our partnership with AEG, we understand that AEG is entrusting us to service these world-class facilities. It is our responsibility and privilege to help ensure that these venues offer exceptional experiences for all guests and event staff, and we take it very seriously.”

From convention centers to concert halls, ABM Industries provides janitorial services to more than 100 sports and entertainment venues. The company’s janitorial services include pre, during & post-event cleaning; pressure washing & window cleaning, floor care, waste removal & recycling, changeover crews, food service sanitation and suite & seat detailing.

Shares of ABM Industries have gained 4.2% in the past six months against 8% decline of the industry it belongs to.

 

Our Take

The partnership is likely to help ABM Industries boost its Business & Industry segment as it encompasses the company’s janitorial service offerings to sports and entertainment venues.

Accounting for 48% of ABM Industries’ revenues in first-quarter fiscal 2019, the segment emerged as the largest contributor. Its revenues improved 2.4% year over year.

Zacks Rank and Stocks to Consider

Currently, ABM Industries carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

A few better-ranked stocks in the broader Zacks Business Services sector are Interpublic IPG, Omnicom OMC and Paychex PAYX, each carrying a Zacks Rank #2 (Buy). Long-term expected EPS (three to five years) growth rate for Interpublic, Omnicom and Paychex is 2.7%, 4.7% and 8.8%, respectively.

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Interpublic Group of Companies, Inc. (The) (IPG) : Free Stock Analysis Report
 
Omnicom Group Inc. (OMC) : Free Stock Analysis Report
 
ABM Industries Incorporated (ABM) : Free Stock Analysis Report
 
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