News Spotlight: ABM Industries Incorporated (NYSE: ABM)

ABM Industries Incorporated (NYSE: ABM) stock observed trading -25.90% off 52-week high price. On the other end, the stock has been noted 59.77% away from low price over the last 52-weeks. The stock disclosed a move of 0.21% away from 50 day moving average and -9.39% away from 200 day moving average. Moving closer, we can see that shares have been trading -4.52% off 20-day moving average. It has market cap of $2096.09M and dividend yield of 2.34%.

ABM (ABM) recently reported financial results for the second quarter of fiscal 2020.

Scott Salmirs, President and Chief Executive Officer of ABM Industries commented, “Very shortly following the announcement of our first quarter results, the COVID-19 pandemic spread rapidly throughout the country and the world.  We immediately mobilized to respond to the critical needs of our clients while focusing on protecting our team members.  As an essential service provider, we have been called on to keep consumers’ facilities safe and sanitized and the response has been overwhelming.”

Second Quarter Results

For the second quarter of fiscal 2020, the Company stated revenues of about $1.5B, down 6.2% versus the second quarter of fiscal 2019. Revenue declines were primarily driven by COVID-19 related disruptions, facility closures, and service scope changes, particularly within the Aviation, Technical Solutions and Education sections.  Important demand for COVID-19 related Work Orders (tags) in the Business & Industry, Technology & Manufacturing and Education sections partially offset these results.

The COVID-19 pandemic has had a dramatic impact on economic and market conditions, particularly within the Education, Aviation, and Technical Solutions sections.  As a result, the Company recorded a pre-tax, non-cash impairment charge related to goodwill and intangible assets of $172.8M during the quarter, or $2.55 per diluted share, related to Education, Aviation, and UK-based Technical Solutions sections.

On a GAAP basis, the Company stated a loss from continuing operations of $136.8M, or $2.05 per diluted share, driven primarily by the aforementioned impairment charges.  These results compare to income from continuing operations of $29.9M, or $0.45 per diluted share, last year.

Adjusted income from continuing operations for the second quarter of 2020 was $40.4M, or $0.60 per diluted share, contrast to $31.5M, or $0.47 per diluted share for the second quarter of fiscal 2019.  Adjusted results exclude items impacting comparability.  A description of items impacting comparability can be found in the “Reconciliation of Non-GAAP Financial Measures” table.

Results from continuing operations for the quarter on both a GAAP and adjusted basis primarily reflect a important increase in higher margin Work Orders as clients reacted to COVID-19 during the quarter.  The Company also demonstrated its nimble operating model by managing direct labor and related personnel costs to align with the operating environment.   Additionally, the Company also reduced certain corporate expenses such as information technology costs and share-based compensation.

Net loss for the second quarter of 2020 was $136.8M, or $2.05 per diluted share, contrast to net income of $29.7M, or $0.45 per diluted share last year.

Adjusted EBITDA for the quarter was $91.0M contrast to $84.7M in the second quarter of fiscal 2019.  Adjusted EBITDA margin for the quarter was 6.1% versus 5.3% last year.  Adjusted results exclude items impacting comparability.

USA based company ABM Industries Incorporated moved with change of 0.51% to $31.62 with the total traded volume of 421350 shares in recent session versus to an average volume of 573.18K. ABM’s shares are at 15.91% for the quarter and driving a -20.57% return over the course of the past year and is now at -16.15% since this point in 2018. The average volatility for the week and month was at 4.69% and 4.57% respectively.


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