ABM Industries (ABM) To Report Q4 Earnings: What's In Store?

ABM Industries Inc. (NYSE:ABM) is scheduled to report fourth-quarter fiscal 2019 results on Dec 18, after market close.

So far this year, shares of ABM Industries have gained 18.8% against the industry’s loss of 1.3%.

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

Organic Growth to Drive the Top Line

Organic growth is likely to have driven ABM Industries’ fourth-quarter fiscal 2019 revenues, the Zacks Consensus Estimate for which is pegged at $1.66 billion, indicating year-over-year increase of 0.7%. In third-quarter fiscal 2019, revenues of $1.65 billion increased 1.5% year over year.

Bottom Line to Improve Year Over Year

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’ fourth-quarter fiscal 2019 earnings. The Zacks Consensus Estimate for earnings is pegged at 62 cents per share, indicating year-over-yeargrowth of 6.9%.

In third-quarter fiscal 2019, adjusted earnings per share were 60 cents, up 3 cents from the year-ago quarter.

What Our Model Says

Our proven Zacks model does not conclusively predict an earnings beat for ABM Industries this season. 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. But that’s not the case here. 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 0.00% and a Zacks Rank #3.

Stocks to Consider

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

Hewlett Packard Enterprise Company (NYSE:HPE) has an Earnings ESP of +0.69% and a Zacks Rank #3.

Hormel Foods Corporation (NYSE:HRL) has an Earnings ESP of +0.18% Zacks Rank #3.

Eaton (NYSE:ETN) Vance Corp. (NYSE:EV) has an Earnings ESP of +0.06% Zacks Rank #3.

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