NYSE$ABM

ABM Industries Inc · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Reported strong Q1 2021 earnings driven by increased demand for virus protection and EnhancedClean™ services, along with effective labor management.

ABM Industries reported a decrease in revenue by 7.5% compared to the first quarter of fiscal 2020, but experienced a significant increase in operating profit and earnings per share due to higher demand for disinfection-related work and effective labor management. The company achieved more than $45 million in cash flow year-to-date and issued fiscal 2021 guidance.

  • GAAP Continuing EPS was $1.10; Adjusted Continuing EPS was $1.01.
  • Cash flow from operations exceeded $45 million.
  • Revenue decreased by 7.5% due to COVID-19 related client disruptions.
  • Increased demand for disinfection-related work orders and EnhancedClean™ services partially offset revenue decline.

Headline financials

Total Revenue

$1.49B

Previous: $1.61B-7.5%
EPS (adj)

$1.01

Previous: $0.39+159.0%
Adjusted EBITDA

$124M

Previous: $68.8M+79.8%
Capital Expenditures

-$6.6M

Previous: -$11.5M+42.6%
Free Cash Flow

$38.7M

Previous: -$45.8M+184.5%
Net Income

$74.6M

Previous: $28M+166.4%
Operating Income

$110M

Previous: $45.8M+139.5%
Gross Profit

$243M

Previous: $179M+35.6%
Cash & Equivalents

$378M

Previous: $69.8M+442.0%
Total Assets

$3.78B

Previous: $3.85B-1.7%
Stock-Based Comp

$8.5M

Previous: $4.9M+73.5%

Revenue & EPS history

ABM · Revenue · Quarterly

$1.49B

Q1 2021-7.5%vs Q1 2020
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

ABM · $1.28B total across 4 segments · Q1 2021

  • Business & Industry
    $809M
  • Education
    $209M
  • Aviation
    $143M
  • Technical Solutions
    $113M

Forward guidance

For fiscal 2021, the Company expects GAAP income from continuing operations of $2.85 to $3.10 per diluted share, and adjusted income from continuing operations of $3.00 to $3.25 per diluted share.

Tailwinds

  • The company anticipates a heightened sensitivity to health and hygiene post-pandemic.
  • Investments are being made to protect employees and clients.
  • The company aims to maximize its strengths and market position.
  • The company looks forward to continuing to work with clients as they develop re-entry plans and cultivate robust facility protections.
  • The company is encouraged by the development and rollout of the multiple vaccines.

Headwinds

  • The impact of COVID-19 on clients and communities continues to evolve.
  • Implications to clients and end-markets will remain throughout fiscal 2021.
  • Guidance does not include any potential effects associated with certain other discrete tax items and other unrecognized tax benefits.
  • Unspecified discrete tax items may impact guidance.
  • Unrecognized tax benefits may impact guidance.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

+0.1%

Avg return

Earnings day

-1.8%

Avg return

5 days after

-1.5%

Avg return

30 days after

55%

38 / 69 earnings

Positive

+18.7%

Q4 2018

Best reaction

-13.2%

Q2 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026+6.6%+12.1%
Q1 2026-4.6%-10.4%-8.8%
Q4 2025+5.7%-7.7%-1.0%
Q3 2025+0.6%-4.3%-3.2%
Q2 2025+0.0%-2.0%+10.1%
Q1 2025-8.7%-4.3%-7.5%
Q4 2024-6.9%-8.3%-3.3%
Q3 2024-11.0%-12.6%-8.6%
Q2 2024+6.7%+6.0%+3.5%
Q1 2024+2.8%+2.5%+8.2%
Q4 2023+5.9%+3.2%-5.2%
Q3 2023-12.3%-12.1%-7.8%
Q2 2023+6.3%+2.4%-6.9%
Q1 2023-3.6%-7.6%-8.4%
Q4 2022-3.2%-3.9%+0.7%
Q3 2022-4.8%-8.9%-12.0%
Q2 2022-13.2%-22.4%-13.9%
Q1 2022+2.9%+1.1%+4.8%
Q4 2021-10.2%-15.2%-1.7%
Q3 2021-2.8%-2.0%-1.9%
Q2 2021-0.0%-0.2%-12.3%
Q1 2021+6.2%+8.7%+8.9%
Q4 2020-1.2%-5.8%+0.2%
Q3 2020+0.5%-5.7%-2.2%
Q2 2020+14.4%+14.3%+5.8%
Q1 2020+3.3%-7.1%-32.9%
Q4 2019+5.1%+1.8%+7.3%
Q3 2019-3.6%-1.7%-5.1%
Q2 2019+5.8%+5.0%+8.3%
Q1 2019-6.8%-7.0%+3.1%
Q4 2018+18.7%+16.4%+34.8%
Q3 2018+5.7%+6.3%-0.2%
Q2 2018+12.1%+6.9%+4.7%
Q1 2018+3.7%+7.5%-4.2%
Q4 2017-12.9%-13.1%-11.3%
Q3 2017-9.1%-6.9%-3.2%
Q2 2017+2.4%-5.3%-4.2%
Q1 2017+5.0%+6.9%+4.0%
Q4 2016-7.9%-6.6%-7.3%
Q3 2016+3.7%-0.6%-0.5%
Q2 2016+8.8%+7.2%+7.5%
Q1 2016+2.7%
Q4 2015+0.1%
Q3 2015-2.8%
Q2 2015+2.0%
Q1 2015-5.7%
Q4 2014+3.1%
Q3 2014+4.5%
Q2 2014-3.2%
Q1 2014-0.3%
Q4 2013-3.7%
Q3 2013+1.4%
Q2 2013+5.2%
Q1 2013-3.0%
Q4 2012+1.4%
Q3 2012-5.6%
Q2 2012-1.5%
Q1 2012+4.0%
Q4 2011+0.0%
Q3 2011-4.4%
Q2 2011-0.5%
Q1 2010-4.0%
Q1 2011+4.4%
Q2 2010+0.2%
Q4 2008+0.2%
Q4 2010+0.2%
Q3 2010+0.6%
Q3 2009+0.6%
Q4 2009+0.6%

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