How ABM Industries, Inc. (ABM) Aims to Keep Growing

ABM Industries, Inc. (NYSE:ABM)Next Monday, ABM Industries, Inc. (NYSE:ABM) will release its latest quarterly results. With the stock having recently hit 52-week highs, can the company keep delivering the growth that investors want to see?

ABM Industries, Inc. (NYSE:ABM) isn’t a well-known name, but by providing services related to building and facility maintenance that span from simple carpet and floor cleaning and parking-lot operations to mechanical engineering and other custom-tailored services, the company has its finger on the pulse of the U.S. economy. Let’s take an early look at what’s been happening with ABM Industries, Inc. (NYSE:ABM) over the past quarter and what we’re likely to see in its quarterly report.

Stats on ABM Industries

Analyst EPS Estimate $0.33
Change From Year-Ago EPS 10%
Revenue Estimate $1.18 billion
Change From Year-Ago Revenue 11.8%
Earnings Beats in Past 4 Quarters 2

Source: Yahoo! Finance.

How will ABM Industries fare with its earnings this quarter?
Analysts have taken a more favorable view of the earnings outlook at ABM Industries, Inc. (NYSE:ABM) lately, raising their estimates for the full 2013 fiscal year by $0.03 per share. The stock has responded with modest gains of 8% since late February.

ABM has quietly put together an impressive business in serving some major facility installations around the world. Last year, the company bought Air Serv for $158 million, boosting its presence in the lucrative aviation facility management space. With Air Serv having served 27 of the top 40 U.S. markets and 12 of the top 30 airports worldwide, the company made a good fit to go with ABM’s airport parking, janitorial, and security businesses.

In its previous report in March, ABM Industries, Inc. (NYSE:ABM) highlighted its Janitorial division as having the most growth potential, with expectations for several new and large jobs ramping up in the coming quarters. Even with sequestration having started, the company hadn’t seen a major impact to its government-related business at that point.

Moreover, since then, ABM Industries, Inc. (NYSE:ABM) has had some more successes. In what could become an important strategic move, it entered into a joint venture that will give it the ability to provide solar-energy services to large commercial and utility-scale solar markets. Solar giant First Solar, Inc. (NASDAQ:FSLR) has produced extremely strong results with its large-scale solar projects lately, and as solar modules have gotten more affordable, the opportunity to use solar in more applications has gotten bigger. ABM also won part of a joint contract with Lockheed Martin Corporation (NYSE:LMT) to provide engineering services to the U.S. Army Corps of Engineers, and although that $48.2 million contract is relatively small, it shows that new spending is happening at the government level despite sequestration.

In ABM’s quarterly report, watch closely to see how the Air Serv integration is progressing. With big growth in the aerospace industry, serving airports is likely to have lucrative opportunities in the years to come, and that part of ABM’s business could become extremely important to its overall long-term success.

The article How ABM Industries Aims to Keep Growing originally appeared on Fool.com and is written by Dan Caplinger.

Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter @DanCaplinger. The Motley Fool owns shares of Lockheed Martin.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

6 Ways to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

10 High Paying Seasonal Jobs in America this Holiday Season

The 10 Busiest Shipping Lanes in the World

5 Most Valuable Brands in China

The 10 States with Highest Substance Abuse Rates Crippling Their Populace

The Top 10 Things to Do Before You Die That Will Echo for Eternity

The 10 Best Selling Items on Etsy

Top 10 Things to Do in Tokyo, the Greatest City in the World

10 Mistakes on Social Media that Can Harm You and Will Probably Get You Canned

The 10 Best Cities to Find Jobs in 2014

The 10 Most Controversial Songs Of All Time to Hit (and get Banned from) the Airwaves

The 20 Biggest IPOs in US History

The 10 Best Places to Visit in Mexico that Are Beautiful and Safe

7 Bad Habits that Age You Beyond Your Years

The 40 Best Fortune Cookie Sayings That Will Leave You Bemused, Befuddled, or Beguiled

10 Foods to Eat Before a Workout to Make Every Drop of Sweat Count

The 5 Best Documentaries On Netflix You Must See

The Most Heartwarming and Inspirational Story Of This Halloween Season, It Will Make You Cry and Jump For Joy

10 Best Party Songs of All Time to Bring the House Down With

5 New World Order Conspiracy Theories that Will Strangle the World

The 10 Highest Rated Movies of 2014

The 10 Largest Container Shipping Companies in the World

The 10 Largest Armies in the World: Who Should We Be Afraid Of?

Best Warren Buffett Quotes on Money You Need to Hear

The 10 Highest Suicide Rates by Profession

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!