Industrial maintenance company ABM Industries (ABM 1.50%) wasn’t looking too solid this week. Over that period, its share price fell by 14%, according to data compiled by S&P Global Market Intelligence, on the back of fiscal 2023 third-quarter results that didn’t entirely meet expectations.
For the period, which ended July 31, ABM earned slightly under $2.03 billion in revenue, up 3% year over year. However, non-GAAP (adjusted) net income slipped to a bit under $53 million ($0.79 per share) from a profit of over $63 million in the year-ago period.
While that top-line figure was essentially in line with the average estimate, the adjusted net income number was not. Collectively, prognosticators following ABM stock were anticipating that the company would net $0.89 per share.
Strong growth in our Aviation, Education and Manufacturing & Distribution segments was partially offset by delayed project starts and lower bundled energy solutions activity within our Technical Solutions segment,” said ABM CEO Scott Salmirs in explaining the quarter’s performance. Additionally, market conditions remained soft for our janitorial service line in Business & Industry.
On the plus side, the Dividend King declared that its next quarterly payout of $0.22 per share will be distributed on Nov. 6 to investors of record as of Oct. 5.
ABM also narrowed its profitability guidance for its fiscal 2023. It now expects adjusted net income will land in the range of $3.40 per share to $3.50 per share. That range, however, falls short of the average analyst estimate of $3.52.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.