Zacks Investment Research Lowers ABM Industries (ABM) to Strong Sell
ABM Industries (NYSE:ABM) was downgraded by Zacks Investment Research from a “hold” rating to a “strong sell” rating in a research report issued on Friday.
According to Zacks, “ABM missed on fourth-quarter fiscal 2017 earnings despite higher revenues due to one-time acquisition costs of GCA Services and litigation costs related to the Aviation segment. ABM has underperformed the industry year to date due to macroeconomic concerns. Brexit could further result in higher tariff and non-tariff barriers to trade between the U.K. and the European Union, lowering its productivity. It is also likely to be stifled by the renegotiated deals and restrictions imposed on trade. Strong competitive pressures could limit ABM’s success rate in bidding for profitable businesses and its ability to increase prices in accordance with the rising costs. However, ABM’s comprehensive, strategic and transformative initiatives are focused on driving sustainable profitability by effectively allocating resources to high margin services and business verticals with a strong competitive edge.”
Several other research firms also recently issued reports on ABM. BidaskClub raised shares of ABM Industries from a “buy” rating to a “strong-buy” rating in a report on Saturday, August 26th. Robert W. Baird set a $47.00 price objective on shares of ABM Industries and gave the company a “buy” rating in a report on Thursday, August 24th. Finally, KeyCorp raised shares of ABM Industries from a “sector weight” rating to an “overweight” rating and set a $48.00 price objective on the stock in a report on Monday, September 11th. One investment analyst has rated the stock with a sell rating, three have assigned a buy rating and one has issued a strong buy rating to the stock. The company has a consensus rating of “Buy” and a consensus price target of $48.20.
ABM Industries (NYSE:ABM) last posted its quarterly earnings data on Wednesday, December 13th. The business services provider reported $0.37 earnings per share (EPS) for the quarter, missing the Thomson Reuters’ consensus estimate of $0.49 by ($0.12). The company had revenue of $1.50 billion for the quarter, compared to analysts’ expectations of $1.49 billion. ABM Industries had a net margin of 0.07% and a return on equity of 10.88%. The business’s revenue for the quarter was up 13.3% on a year-over-year basis. During the same period in the previous year, the business earned $0.51 earnings per share. research analysts predict that ABM Industries will post 1.92 EPS for the current year.
In other news, SVP Dean A. Chin sold 880 shares of the firm’s stock in a transaction dated Wednesday, October 4th. The shares were sold at an average price of $42.90, for a total value of $37,752.00. The transaction was disclosed in a filing with the SEC, which is available through this link. Company insiders own 1.30% of the company’s stock.
Several large investors have recently bought and sold shares of ABM. Arizona State Retirement System raised its stake in ABM Industries by 0.3% during the second quarter. Arizona State Retirement System now owns 29,038 shares of the business services provider’s stock worth $1,206,000 after purchasing an additional 100 shares during the period. Amalgamated Bank raised its stake in ABM Industries by 2.6% during the second quarter. Amalgamated Bank now owns 7,743 shares of the business services provider’s stock worth $321,000 after purchasing an additional 196 shares during the period. Zurcher Kantonalbank Zurich Cantonalbank raised its stake in ABM Industries by 9.5% during the second quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 2,629 shares of the business services provider’s stock worth $109,000 after purchasing an additional 229 shares during the period. State Board of Administration of Florida Retirement System raised its stake in ABM Industries by 0.4% during the second quarter. State Board of Administration of Florida Retirement System now owns 53,260 shares of the business services provider’s stock worth $2,211,000 after purchasing an additional 238 shares during the period. Finally, Victory Capital Management Inc. raised its stake in ABM Industries by 17.7% during the second quarter. Victory Capital Management Inc. now owns 5,209 shares of the business services provider’s stock worth $216,000 after purchasing an additional 782 shares during the period. 96.21% of the stock is currently owned by hedge funds and other institutional investors.
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About ABM Industries
ABM Industries Incorporated is a provider of integrated facility solutions. The Company operates through five segments: Janitorial, Facility Services, Parking, Building & Energy Solutions, and other. Its Janitorial segment provides a range of cleaning services for commercial office buildings, data centers, educational institutions, government buildings, health facilities, industrial buildings, retail stores, sport event facilities and transportation hubs.
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