ABM Industries Lifts FY 2013 Outlook, Shares Gain (ABM)
ABM Industries Inc. (NYSE: ABM) reported on Monday that its fiscal second-quarter profit rose 65% as the integrated building solutions provider’s top line was bolstered by some recent acquisitions and steady organic revenue growth.
The Company not only topped analysts’ earnings estimate for the second quarter but also provided upbeat guidance for full-year earnings.
For the fiscal second quarter ended April 30, ABM Industries reported net income of $19.3 million or 35 cents a share compared to a profit of $11.7 million or 21 cents a share, in the same quarter of last year.
Stripping out onetime items, adjusted earnings climbed to $20.2 million or 36 cents a share from $16.3 million or 30 cents a share, in the year-earlier quarter. Analysts’ consensus estimate was for earnings of 33 cents a share, according to a data compiled by Thomson Reuters.
Revenue climbed 11% $1.17 billion from $1.06 billion in the same quarter of last year but missed Street’s forecast for $1.18 billion.
Revenue- rose 2.7% at its janitorial segment, climbed 8.4% at facility solutions segment, and increased 3% at its security segment. Revenue jumped 8.4% at its buildings and energy solutions division, driven by acquisitions.
For the full-year fiscal, the Company is now expecting non-GAAP earnings of $1.40 to $1.50 a share while analysts’ consensus estimate was for $1.40 a share. Earlier the Company projected non-GAAP earnings to be in the range of $1.35 a share to $1.45 a share.
Meanwhile, the Company said that the Board of Directors approved a third quarter cash dividend of 15 cents a share payable on August 5 to shareholders of record on July 5.