Canada markets closed

Is a Beat in Store for ABM Industries' (ABM) Q1 Earnings?

Zacks Equity Research

ABM Industries Inc. ABM is scheduled to report first-quarter fiscal 2020 results on Mar 4, after market close.

Over the past year, shares of ABM Industries have declined 7.7% compared with the industry’s loss of 11.8%.

 

Let's see how things have shaped up for the announcement.

Top-Line Expectations

Organic growth is likely to have driven ABM Industries’ first-quarter fiscal 2020 revenues, the Zacks Consensus Estimate for which is pegged at $1.61 billion, indicating year-over-year increase of 0.1%.

In fourth-quarter fiscal 2019, revenues of $1.65 billion decreased 0.1% year over year.

Bottom-Line Expectations

Higher revenue contribution from the Technical Solutions segment, higher margin revenue mix and improved labor management primarily within the Business & Industry segment, and favorable impact of the adoption of Accounting Standards Codification ("ASC") 606 are likely to have benefited ABM Industries’ first-quarter fiscal 2020 earnings. The Zacks Consensus Estimate for earnings is pegged at 31 cents per share, in line with the year-ago quarter.

In fourth-quarter fiscal 2019, adjusted earnings per share were 66 cents, up 13.8% from the year-ago quarter.

What Our Model Says

Our proven model predicts an earnings beat for ABM Industries this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

ABM Industries has an Earnings ESP of +10.87% and a Zacks Rank #3.

ABM Industries Incorporated Price and EPS Surprise

 

ABM Industries Incorporated Price and EPS Surprise

ABM Industries Incorporated price-eps-surprise | ABM Industries Incorporated Quote

Other Stocks to Consider

Here are a few other stocks, which investors may consider as our model shows that these too have the right combination of elements to beat on earnings in their upcoming releases:

Limoneira Company LMNR has an Earnings ESP of +2.7% and a Zacks Rank #3.

Eaton Vance Corp. EV has an Earnings ESP of +0.77% and a Zacks Rank #3.

The Cooper Companies, Inc. COO has an Earnings ESP of +0.63% and a Zacks Rank #3.

Looking for Stocks with Skyrocketing Upside?

Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.

Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.

See the pot trades we're targeting>>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
ABM Industries Incorporated (ABM) : Free Stock Analysis Report
 
The Cooper Companies, Inc. (COO) : Free Stock Analysis Report
 
Eaton Vance Corporation (EV) : Free Stock Analysis Report
 
Limoneira Co (LMNR) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research