ABM INDUSTRIES Reports Earnings Results for Third Quarter of FY2023
September 8, 2023
🌥️Earnings Overview
On September 7th 2023, ABM INDUSTRIES ($NYSE:ABM) revealed their financial results for the third quarter of FY2023, ending on July 31st 2023, with total revenue of USD 2028.2 million, a 3.4% increase from the same period in the previous year. Net income was also up significantly, at USD 98.1 million, resulting in a 72.7% year-over-year increase.
Share Price
At the opening bell, their stock price was at $40.5, and closed the day at $38.7, which was a significant plunge of 13.6% from its last closing price of 44.8. This marked the company’s biggest one-day percentage drop in over three months. Analysts were unimpressed by the results, as ABM failed to meet their expectations for the third quarter. It is expected that the company will need to turn around its performance in order to reach its stated goals for the fiscal year 2023. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Abm Industries. More…
| Total Revenues | Net Income | Net Margin |
| 8.01k | 237.3 | 3.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Abm Industries. More…
| Operations | Investing | Financing |
| 221.2 | -193.2 | 2.9 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Abm Industries. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 4.97k | 3.11k | 26.95 |
Key Ratios Snapshot
Some of the financial key ratios for Abm Industries are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 9.2% | 12.3% | 4.8% |
| FCF Margin | ROE | ROA |
| 2.2% | 13.5% | 4.8% |
Analysis
GoodWhale recently conducted an analysis of the wellbeing of ABM INDUSTRIES. Our findings were remarkable – according to our Star Chart, ABM INDUSTRIES had a health score of 8/10, indicating that it is a well-run company with strong cashflows and a manageable debt load. When it comes to individual metrics, ABM INDUSTRIES excelled in dividend and growth but was only medium when it came to profitability and weak in asset. Based on these results, we classified ABM INDUSTRIES as a ‘cheetah’, a type of company that has achieved high revenue or earnings growth but is considered less stable due to lower profitability. This makes ABM INDUSTRIES an attractive option for investors looking for high returns but who are also willing to accept some risk. Investors who are comfortable taking on more risk may find ABM INDUSTRIES to be an interesting prospect. More…
Peers
As the competition heats up, ABM Industries Inc will have to make sure that their services remain the best in the industry in order to stay ahead of their competitors.
– Mader Group Ltd ($ASX:MAD)
Mader Group Ltd is a leading global provider of construction services, specializing in the mining and energy sectors. With a market cap of 714M as of 2022, the company is well positioned to continue to grow and expand its business. Mader Group Ltd has a very impressive Return on Equity (ROE) of 33.68%, which is significantly higher than the industry average of 14%. This indicates that the company is making effective use of its equity to generate excellent returns for its shareholders. Mader Group Ltd is well-positioned to capitalize on growth opportunities in the global construction and energy sectors.
– Teleperformance SE ($OTCPK:TLPFF)
Teleperformance SE is a global leader in customer experience management and business process outsourcing. Founded in 1978, the company specializes in providing customer care, technical support, and digital integrated services across multiple channels. As of 2022, Teleperformance SE has a market capitalization of 13.34B. Its return on equity (ROE) is 16.41%, which indicates a high return on the invested capital relative to its competitors. This strong ROE is testament to the company’s ability to generate value for its shareholders by efficiently using its resources.
– Dexterra Group Inc ($TSX:DXT)
Dexterra Group Inc is a Canadian company that specializes in providing enterprise mobility solutions and services to its clients. The company has a market cap of 335.95M as of 2022, which represents its current market value. Its Return on Equity (ROE) is 4.62%, which refers to the amount of net income earned compared to the company’s total equity. The company’s current ROE is lower than the industry average, indicating that it is creating less value for its shareholders than its peers. Overall, Dexterra Group Inc is a reliable provider of enterprise mobility solutions and services and its market cap and ROE can be taken as indicators of its stability and potential for growth.
Summary
ABM Industries has seen impressive growth in the third quarter of FY2023, with total revenue increasing 3.4% and net income increasing 72.7% year-over-year. Despite the strong financials, the stock price of ABM Industries dropped on the same day – likely due to investor expectations of even greater growth than reported. For investors considering investing in ABM, it may be worth waiting for the share price to level out and then waiting for further company updates before investing. This could allow investors to get a more accurate reading of the potential of ABM as an investment, giving them a better chance of long-term profitability.
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