ABM Industries (NYSE:ABM) shares tumbled Wednesday, on reporting better-than-expected profit and revenue for its latest quarter. But the provider of facility services gave an outlook that fell below consensus estimates.
The company posted fourth quarter revenue of $2.0 billion, up 19% year-over-year, with 6% organic growth. It also delivered fourth quarter net income of $48.9 million and GAAP EPS of $0.73, a year-over-year increase of 43% and 46% , respectively
ABM generated fourth-quarter adjusted EBITDA of $130.7 million, up 18% year-over-year, and recorded Q4 adjusted EPS of $0.89 , up 5% year-over-year
Notably, the company received Board approval for a $150-million expansion of the Company's existing share repurchase authorization
Said CEO Scott Salmirs, “ABM generated solid fourth quarter results, with total revenue growth of 19%, including broad-based organic revenue growth of 6%, and double-digit adjusted EBITDA growth. Our adjusted EBITDA margin of 6.8% reflects consistent execution by the ABM team. We posted strong organic growth in our Technical Solutions, Aviation and Manufacturing & Distribution segments, and also benefited from the addition of new clients in Education, as well as from solid organic growth in Business & Industry."
During the fourth quarter, the Company continued to progress on its cloud-based enterprise resource planning system and workforce management tools as part of its ELEVATE initiative. The Company expects the first phase of its ERP rollout to occur in 2023. The Company also deployed frontline leader training, an upgraded procurement management tool, and a hyper-targeting tool for sales as part of ELEVATE.
ABM shares lost $3.21, or 7%, to $42.40.
