ABM Ind. Profit Tops Estimates; Lifts FY Outlook - Update

(RTTNews) - Facility service provider ABM Industries Inc. (ABM), Tuesday reported a near 28 percent increase in third-quarter profit, as recent acquisitions and growth in janitorial and other segments boosted revenue. Both earnings and revenue for the quarter topped Wall Street estimates.

ABM lifted the lower end of its earnings outlook for 2013, and also announced a quarterly cash dividend of $0.15 per share.

"The combination of strong revenue momentum, anticipated margin improvement and good progress on the integration of our acquisitions gives us confidence in our earnings outlook...," said CEO Henrik Slipsager.

The New York-based company posted quarterly net income of $16 million or $0.29 per share, compared with $12.6 million or $0.23 per share last year.

Excluding items, adjusted earnings for the quarter were $23 million or $0.41 per share, compared with $20 million or $0.37 per share a year ago.

On average, seven analysts polled by Thomson Reuters expected earnings of $0.39 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the third quarter improved 13 percent to $1.22 billion from $1.08 billion in the prior year. Analysts expected revenue of $1.2 billion for the quarter.

On an organic basis, sales were up 3 percent. Janitorial, Facility Services, and Security segments benefited from new business and increased scope of work with existing clients, the company said.

For fiscal year 2013, ABM now expects income from continuing operations of $1.26 to $1.31 per share and adjusted earnings of $1.45 to $1.50 per share. The company had earlier projected income of $1.21 to $1.31 per share and adjusted earnings of $1.40 to $1.50 per share. Analysts expect earnings of $1.45 per share for the year.

Shares of ABM closed Tuesday's regular trading at $24.59, up $0.44 or 1.82%, on the NYSE.