ABM Industries (NYSE:ABM) Quarterly Earnings Preview

• ABM Industries (NYSE:ABM) is expected to report earnings of $0.87 per share with projected revenue of $2.06 billion.
• Revenue is anticipated to rise by 2.3% to $2.06 billion, indicating a positive trend in sales performance.
• A slight downward revision of 1% in the consensus EPS estimate over the past 30 days suggests a reevaluation by analysts.

ABM Industries (NYSE:ABM), a leading provider of facility solutions, including janitorial, electrical, and HVAC maintenance, is set to release its quarterly earnings for the fiscal second quarter of 2025 on Friday, June 6. Wall Street analysts estimate earnings per share (EPS) to be $0.87, with projected revenue of approximately $2.06 billion.

Analysts expect ABM to report earnings of $0.87 per share, consistent with the previous year. However, revenue is anticipated to rise by 2.3% to $2.06 billion compared to the same quarter last year. This growth in revenue suggests a positive trend in the company's sales performance, despite the unchanged EPS.

Over the past 30 days, there has been a slight downward revision of 1% in the consensus EPS estimate for the quarter. This adjustment indicates a reevaluation by analysts of their initial projections. Changes in earnings estimates are significant as they can influence investor reactions to the stock, as highlighted by empirical studies showing a strong correlation between trends in earnings estimate revisions and short-term price performance.

ABM's financial metrics provide insight into its valuation. The company has a price-to-earnings (P/E) ratio of approximately 40.81, indicating the price investors are willing to pay for each dollar of earnings. Its price-to-sales ratio stands at about 0.39, suggesting a relatively low valuation compared to its sales. The enterprise value to sales ratio is approximately 0.58, reflecting the company's total valuation in relation to its sales.

The company's debt-to-equity ratio is about 0.93, showing the proportion of debt used to finance its assets relative to equity. ABM also has a current ratio of approximately 1.52, indicating its ability to cover short-term liabilities with short-term assets. These financial metrics provide a comprehensive view of ABM's financial health and market valuation.