Why Facility Management Provider ABM Industries Shares Are Shooting Higher Today
Portfolio Pulse from Shivani Kumaresan
ABM Industries Inc (NYSE:ABM) shares surged after reporting Q4 FY23 earnings that exceeded expectations with sales growth of 4.1% Y/Y to $2.09 billion, surpassing analyst estimates. Adjusted EPS was $1.01, beating the $0.92 consensus. Operating income increased by 34.5%, and adjusted EBITDA grew by 10%. The company also announced a $150 million expansion of its share repurchase program and a 2.3% increase in its quarterly cash dividend. ABM provided FY24 guidance with an adjusted EPS range of $3.20-$3.40 and an adjusted EBITDA margin of 6.2%-6.5%. Shares rose 13.3% to $50.26.
December 13, 2023 | 2:44 pm
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POSITIVE IMPACT
ABM Industries reported strong Q4 FY23 results with sales and EPS exceeding estimates, a significant increase in operating income, and growth in adjusted EBITDA. The company expanded its share repurchase program and increased its dividend, indicating confidence in its financial health. FY24 guidance suggests continued positive performance.
The positive earnings report, coupled with the expansion of the share repurchase program and dividend increase, are strong indicators of ABM's financial strength and management's confidence in the company's future. This news is likely to be viewed favorably by investors, leading to a short-term positive impact on the stock price.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100