Upcoming AWS Coverage on IHS Markit Post-Earnings Results

LONDON, UK / ACCESSWIRE / December 20, 2016 / Active Wall St. announces its post-earnings coverage on ABM Industries Inc. (NYSE: ABM). The Company released its financial results for the fourth quarter fiscal 2016 (Q4 FY16) and full year 2016 (FY16) on December 13, 2016. The New York-based Company's quarterly revenue growth was 3.5% y-o-y. Register with us now for your free membership at: http://www.activewallst.com/register/.

One of ABM Industries' competitors within the Business Services space, IHS Markit Ltd. (NASDAQ: INFO), will release its financial results for Q4 FY16 on Tuesday, January 17, 2017, before the open of market. AWS will be initiating a research report on IHS Markit in the coming days.

Today, AWS is promoting its earnings coverage on ABM; touching on INFO. Get our free coverage by signing up to:

http://www.activewallst.com/registration-3/?symbol=ABM

http://www.activewallst.com/registration-3/?symbol=INFO

Earnings Reviewed

During Q4 FY16, ABM's total revenue improved to $1.32 billion from $1.28 billion recorded at the end of Q4 FY15. However, total revenue numbers for the reported quarter marginally missed consensus market expectations of $1.33 billion.

The provider of cleaning and other maintenance services for commercial buildings, hospitals, and airports reported GAAP income from continuing operations of $9.0 million, or $0.16 per diluted share, in Q4 FY16 compared to $22.6 million, or $0.39 per diluted share, in the year ago same quarter. The Company's adjusted income from continuing operations for Q4 FY16 came in at $29.2 million, or $0.51 per diluted share, versus $31.5 million, or $0.55 per diluted share, in the year ago comparable quarter. Furthermore, the quarterly adjusted income per share met market expectations of $0.51 per diluted share.

For FY16, the Company's revenue was $5.14 billion, an increase of 5.0% from $4.90 billion in the year ago same period. GAAP income from continuing operations rose to $62.3 million, or $1.09 per diluted share, in FY16 from $54.1 million, or $0.94 per diluted share, in FY15. Additionally, adjusted income from continuing operations for FY16 came in at $99.2 million, or $1.74 per diluted share, compared to $92.9 million, or $1.62 per diluted share, in the previous year same period.

Operating Metrics

In the reported quarter, the Company's total operating expenses was $1.18 billion versus $1.13 billion in Q4 FY15. During Q4 FY16, operating profit declined to $10.8 million from $37.2 million in the last year's same quarter. Furthermore, the Company reported adjusted EBITDA of $61.5 million, or 4.6% of revenues, in Q4 FY16 compared to $69.4 million, or 5.4% of revenues, in Q4 FY15.

Product Group Performance

During Q4 FY16, Janitorial's revenues were $704.5 million, which was 2.3% above the $688.7 million reported in Q4 FY15. Furthermore, the segment's contribution to the Company's operating profit was to $38.7 million in Q4 FY16 versus $43.9 million in the year ago same quarter.

Facility Services contributed $149.6 million to total revenue during Q4 FY16, up 2.9% from $145.3 million in the last year's comparable quarter. Furthermore, the segment's operating profit improved 6.4% during Q4 FY16 to $7.3 million from $6.8 million in the previous year's comparable quarter.

ABM's parking segment reported revenues of $171.6 million in Q4 FY16 compared to $160.7 million for the same period last year. The product group's contribution in the company's quarterly operating profit was $7.0 million in Q4 FY16 versus $8.6 million in Q4 FY15.

In Q4 FY16, the company generated $172.5 million from its Building & Energy Solutions segment compared to $167.7 million in Q4 FY15. However, the segment reported operating loss of $8.9 million in Q4 FY16 versus an operating profit of $13.8 million in Q4 FY15.

Cash Flow and Balance Sheet

In Q4 FY16, ABM's net cash provided by operating activities declined to $8.4 million from $44.0 million in the previous year's same quarter. As of October 31, 2016, the company had cash and cash equivalent balance of $56.0 million compared to $55.5 million at the close of books on October 31, 2015.

Dividend and Share Repurchases

In the earnings press release, ABM's Board of Directors declared a 3.0% hike in quarterly cash dividend to $0.170 per common share, payable on February 06, 2017 to stockholders of record on January 05, 2017.

During Q4 FY17, ABM repurchased approximately 0.4 million shares of its common stock for $15.4 million. As on October 31, 2016, the company had $141.9 million of remaining buyback availability under the $200.0 million share repurchase program.

Outlook

In its earnings guidance for full-year FY17, ABM anticipates GAAP income from continuing operations in the range of $1.40 per diluted share to $1.50 per diluted share. Adjusted income from continuing operations for FY17 is forecasted to be between $1.80 per diluted share and $1.90 per diluted share.

Stock Performance

On December 19, 2016, ABM Industries' share price finished the trading session at $40.27, marginally advancing 0.55%. A total volume of 534.61 thousand shares exchanged hands, which was higher than the 3 months average volume of 361.23 thousand shares. The stock has advanced 11.17% and 45.82% in the last six months and past twelve months, respectively. Furthermore, since the start of the year, shares of the company have soared 44.28%. The stock is trading at a PE ratio of 36.78 and has a dividend yield of 1.69%.

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