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29300.0 | 2021-11-05 00:00:00 UTC | ABM Industries Shares Cross Above 200 DMA | ABM | https://www.nasdaq.com/articles/abm-industries-shares-cross-above-200-dma-2021-11-05 | nan | nan | In trading on Friday, shares of ABM Industries, Inc. (Symbol: ABM) crossed above their 200 day moving average of $47.06, changing hands as high as $47.95 per share. ABM Industries, Inc. shares are currently trading up about 3.2% on the day. The chart below shows the one year performance of ABM shares, versus its 200 day moving average:
Looking at the chart above, ABM's low point in its 52 week range is $36.32 per share, with $55.48 as the 52 week high point — that compares with a last trade of $47.88.
Click here to find out which 9 other stocks recently crossed above their 200 day moving average »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In trading on Friday, shares of ABM Industries, Inc. (Symbol: ABM) crossed above their 200 day moving average of $47.06, changing hands as high as $47.95 per share. The chart below shows the one year performance of ABM shares, versus its 200 day moving average: Looking at the chart above, ABM's low point in its 52 week range is $36.32 per share, with $55.48 as the 52 week high point — that compares with a last trade of $47.88. ABM Industries, Inc. shares are currently trading up about 3.2% on the day. | In trading on Friday, shares of ABM Industries, Inc. (Symbol: ABM) crossed above their 200 day moving average of $47.06, changing hands as high as $47.95 per share. The chart below shows the one year performance of ABM shares, versus its 200 day moving average: Looking at the chart above, ABM's low point in its 52 week range is $36.32 per share, with $55.48 as the 52 week high point — that compares with a last trade of $47.88. ABM Industries, Inc. shares are currently trading up about 3.2% on the day. | In trading on Friday, shares of ABM Industries, Inc. (Symbol: ABM) crossed above their 200 day moving average of $47.06, changing hands as high as $47.95 per share. The chart below shows the one year performance of ABM shares, versus its 200 day moving average: Looking at the chart above, ABM's low point in its 52 week range is $36.32 per share, with $55.48 as the 52 week high point — that compares with a last trade of $47.88. ABM Industries, Inc. shares are currently trading up about 3.2% on the day. | In trading on Friday, shares of ABM Industries, Inc. (Symbol: ABM) crossed above their 200 day moving average of $47.06, changing hands as high as $47.95 per share. ABM Industries, Inc. shares are currently trading up about 3.2% on the day. The chart below shows the one year performance of ABM shares, versus its 200 day moving average: Looking at the chart above, ABM's low point in its 52 week range is $36.32 per share, with $55.48 as the 52 week high point — that compares with a last trade of $47.88. |
29301.0 | 2021-10-29 00:00:00 UTC | 5 Dividend Growth Stocks With Upside To Analyst Targets | ABM | https://www.nasdaq.com/articles/5-dividend-growth-stocks-with-upside-to-analyst-targets-2021-10-29 | nan | nan | To become a "Dividend Aristocrat," a dividend paying company must accomplish an incredible feat: consistently increase shareholder dividends every year for at least 20 consecutive years. Companies with this kind of track record tend to attract a lot of investor attention — and furthermore, "tracking" funds that follow the Dividend Aristocrats Index must own them. With all of this demand for shares, dividend growth stocks can sometimes become "fully priced," where there isn't much upside to analyst targets.
But we here at ETF Channel have looked through the underlying holdings of the SPDR S&P Dividend ETF (which tracks the S&P High Yield Dividend Aristocrats Index), and found these five dividend growth stocks that actually still have fairly substantial upside to the average analyst target price 12 months out. Which means, if the analysts are correct, these are five dividend growth stocks that could produce capital gains in addition to their growing dividend payments.
In the first table below, we present the five stocks. The recent share price, average analyst 12-month target price, and percentage upside to reach the analyst target are presented.
STOCK RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET
Telephone & Data Systems Inc (Symbol: TDS) $18.61 $31.50 69.26%
ABM Industries, Inc. (Symbol: ABM) $43.81 $57.67 31.63%
International Business Machines Corp (Symbol: IBM) $125.84 $155.25 23.37%
SEI Investments Co (Symbol: SEIC) $62.56 $72.67 16.15%
National Fuel Gas Co. (Symbol: NFG) $58.06 $65.33 12.53%
The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. To ballpark that total return potential, we have added the current yield to the analyst target price upside, in order to arrive at the 12-month total return potential:
STOCK DIVIDEND YIELD % UPSIDE TO ANALYST TARGET IMPLIED TOTAL RETURN POTENTIAL
Telephone & Data Systems Inc (Symbol: TDS) 3.76% 69.26% 73.02%
ABM Industries, Inc. (Symbol: ABM) 1.73% 31.63% 33.36%
International Business Machines Corp (Symbol: IBM) 5.21% 23.37% 28.58%
SEI Investments Co (Symbol: SEIC) 1.18% 16.15% 17.33%
National Fuel Gas Co. (Symbol: NFG) 3.13% 12.53% 15.66%
Another consideration with dividend growth stocks is just how much the dividend is growing. We looked up the trailing twelve months worth of dividends shareholders of each of the above five companies have collected, and then also looked up the same number for the prior trailing twelve months. This gives us a rough yardstick to see how much the dividend has grown, from one trailing twelve month period to another.
STOCK PRIOR TTM DIVIDEND TTM DIVIDEND % GROWTH
Telephone & Data Systems Inc (Symbol: TDS) $0.675 $0.695 2.96%
ABM Industries, Inc. (Symbol: ABM) $0.74 $0.76 2.70%
International Business Machines Corp (Symbol: IBM) $6.5 $6.54 0.62%
SEI Investments Co (Symbol: SEIC) $0.7 $0.74 5.71%
National Fuel Gas Co. (Symbol: NFG) $1.76 $1.8 2.27%
These five stocks are part of our full Dividend Aristocrats List. The average analyst target price data upon which this article was based, is courtesy of data provided by Zacks Investment Research via Quandl.com.
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Dividend Growth Stocks: 25 Aristocrats »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Telephone & Data Systems Inc (Symbol: TDS) $18.61 $31.50 69.26% ABM Industries, Inc. (Symbol: ABM) $43.81 $57.67 31.63% International Business Machines Corp (Symbol: IBM) $125.84 $155.25 23.37% SEI Investments Co (Symbol: SEIC) $62.56 $72.67 16.15% National Fuel Gas Co. (Symbol: NFG) $58.06 $65.33 12.53% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Telephone & Data Systems Inc (Symbol: TDS) 3.76% 69.26% 73.02% ABM Industries, Inc. (Symbol: ABM) 1.73% 31.63% 33.36% International Business Machines Corp (Symbol: IBM) 5.21% 23.37% 28.58% SEI Investments Co (Symbol: SEIC) 1.18% 16.15% 17.33% National Fuel Gas Co. (Symbol: NFG) 3.13% 12.53% 15.66% Another consideration with dividend growth stocks is just how much the dividend is growing. Telephone & Data Systems Inc (Symbol: TDS) $0.675 $0.695 2.96% ABM Industries, Inc. (Symbol: ABM) $0.74 $0.76 2.70% International Business Machines Corp (Symbol: IBM) $6.5 $6.54 0.62% SEI Investments Co (Symbol: SEIC) $0.7 $0.74 5.71% National Fuel Gas Co. (Symbol: NFG) $1.76 $1.8 2.27% These five stocks are part of our full Dividend Aristocrats List. | Telephone & Data Systems Inc (Symbol: TDS) $18.61 $31.50 69.26% ABM Industries, Inc. (Symbol: ABM) $43.81 $57.67 31.63% International Business Machines Corp (Symbol: IBM) $125.84 $155.25 23.37% SEI Investments Co (Symbol: SEIC) $62.56 $72.67 16.15% National Fuel Gas Co. (Symbol: NFG) $58.06 $65.33 12.53% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Telephone & Data Systems Inc (Symbol: TDS) 3.76% 69.26% 73.02% ABM Industries, Inc. (Symbol: ABM) 1.73% 31.63% 33.36% International Business Machines Corp (Symbol: IBM) 5.21% 23.37% 28.58% SEI Investments Co (Symbol: SEIC) 1.18% 16.15% 17.33% National Fuel Gas Co. (Symbol: NFG) 3.13% 12.53% 15.66% Another consideration with dividend growth stocks is just how much the dividend is growing. Telephone & Data Systems Inc (Symbol: TDS) $0.675 $0.695 2.96% ABM Industries, Inc. (Symbol: ABM) $0.74 $0.76 2.70% International Business Machines Corp (Symbol: IBM) $6.5 $6.54 0.62% SEI Investments Co (Symbol: SEIC) $0.7 $0.74 5.71% National Fuel Gas Co. (Symbol: NFG) $1.76 $1.8 2.27% These five stocks are part of our full Dividend Aristocrats List. | Telephone & Data Systems Inc (Symbol: TDS) $18.61 $31.50 69.26% ABM Industries, Inc. (Symbol: ABM) $43.81 $57.67 31.63% International Business Machines Corp (Symbol: IBM) $125.84 $155.25 23.37% SEI Investments Co (Symbol: SEIC) $62.56 $72.67 16.15% National Fuel Gas Co. (Symbol: NFG) $58.06 $65.33 12.53% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Telephone & Data Systems Inc (Symbol: TDS) 3.76% 69.26% 73.02% ABM Industries, Inc. (Symbol: ABM) 1.73% 31.63% 33.36% International Business Machines Corp (Symbol: IBM) 5.21% 23.37% 28.58% SEI Investments Co (Symbol: SEIC) 1.18% 16.15% 17.33% National Fuel Gas Co. (Symbol: NFG) 3.13% 12.53% 15.66% Another consideration with dividend growth stocks is just how much the dividend is growing. Telephone & Data Systems Inc (Symbol: TDS) $0.675 $0.695 2.96% ABM Industries, Inc. (Symbol: ABM) $0.74 $0.76 2.70% International Business Machines Corp (Symbol: IBM) $6.5 $6.54 0.62% SEI Investments Co (Symbol: SEIC) $0.7 $0.74 5.71% National Fuel Gas Co. (Symbol: NFG) $1.76 $1.8 2.27% These five stocks are part of our full Dividend Aristocrats List. | Telephone & Data Systems Inc (Symbol: TDS) $18.61 $31.50 69.26% ABM Industries, Inc. (Symbol: ABM) $43.81 $57.67 31.63% International Business Machines Corp (Symbol: IBM) $125.84 $155.25 23.37% SEI Investments Co (Symbol: SEIC) $62.56 $72.67 16.15% National Fuel Gas Co. (Symbol: NFG) $58.06 $65.33 12.53% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Telephone & Data Systems Inc (Symbol: TDS) 3.76% 69.26% 73.02% ABM Industries, Inc. (Symbol: ABM) 1.73% 31.63% 33.36% International Business Machines Corp (Symbol: IBM) 5.21% 23.37% 28.58% SEI Investments Co (Symbol: SEIC) 1.18% 16.15% 17.33% National Fuel Gas Co. (Symbol: NFG) 3.13% 12.53% 15.66% Another consideration with dividend growth stocks is just how much the dividend is growing. Telephone & Data Systems Inc (Symbol: TDS) $0.675 $0.695 2.96% ABM Industries, Inc. (Symbol: ABM) $0.74 $0.76 2.70% International Business Machines Corp (Symbol: IBM) $6.5 $6.54 0.62% SEI Investments Co (Symbol: SEIC) $0.7 $0.74 5.71% National Fuel Gas Co. (Symbol: NFG) $1.76 $1.8 2.27% These five stocks are part of our full Dividend Aristocrats List. |
29302.0 | 2021-10-05 00:00:00 UTC | ABM Industries Incorporated (ABM) Ex-Dividend Date Scheduled for October 06, 2021 | ABM | https://www.nasdaq.com/articles/abm-industries-incorporated-abm-ex-dividend-date-scheduled-for-october-06-2021-2021-10-05 | nan | nan | ABM Industries Incorporated (ABM) will begin trading ex-dividend on October 06, 2021. A cash dividend payment of $0.19 per share is scheduled to be paid on November 01, 2021. Shareholders who purchased ABM prior to the ex-dividend date are eligible for the cash dividend payment. This marks the 4th quarter that ABM has paid the same dividend. At the current stock price of $46.81, the dividend yield is 1.62%.
The previous trading day's last sale of ABM was $46.81, representing a -15.63% decrease from the 52 week high of $55.48 and a 39.69% increase over the 52 week low of $33.51.
ABM is a part of the Technology sector, which includes companies such as JD.com, Inc. (JD) and Gartner, Inc. (IT). ABM's current earnings per share, an indicator of a company's profitability, is $2.14. Zacks Investment Research reports ABM's forecasted earnings growth in 2021 as 45.13%, compared to an industry average of 19.8%.
For more information on the declaration, record and payment dates, visit the abm Dividend History page. Our Dividend Calendar has the full list of stocks that have an ex-dividend today.
Interested in gaining exposure to ABM through an Exchange Traded Fund [ETF]?
The following ETF(s) have ABM as a top-10 holding:
VanEck Environmental Services ETF (EVX)
Pacer US Small Cap Cash Cows 100 ETF (CALF).
The top-performing ETF of this group is CALF with an increase of 5.26% over the last 100 days. EVX has the highest percent weighting of ABM at 3.23%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Shareholders who purchased ABM prior to the ex-dividend date are eligible for the cash dividend payment. Zacks Investment Research reports ABM's forecasted earnings growth in 2021 as 45.13%, compared to an industry average of 19.8%. For more information on the declaration, record and payment dates, visit the abm Dividend History page. | ABM Industries Incorporated (ABM) will begin trading ex-dividend on October 06, 2021. Shareholders who purchased ABM prior to the ex-dividend date are eligible for the cash dividend payment. ABM's current earnings per share, an indicator of a company's profitability, is $2.14. | ABM Industries Incorporated (ABM) will begin trading ex-dividend on October 06, 2021. Shareholders who purchased ABM prior to the ex-dividend date are eligible for the cash dividend payment. The following ETF(s) have ABM as a top-10 holding: VanEck Environmental Services ETF (EVX) Pacer US Small Cap Cash Cows 100 ETF (CALF). | ABM's current earnings per share, an indicator of a company's profitability, is $2.14. The following ETF(s) have ABM as a top-10 holding: VanEck Environmental Services ETF (EVX) Pacer US Small Cap Cash Cows 100 ETF (CALF). ABM Industries Incorporated (ABM) will begin trading ex-dividend on October 06, 2021. |
29303.0 | 2021-10-01 00:00:00 UTC | ABM Industries (NYSE:ABM) Could Be A Buy For Its Upcoming Dividend | ABM | https://www.nasdaq.com/articles/abm-industries-nyse%3Aabm-could-be-a-buy-for-its-upcoming-dividend-2021-10-01 | nan | nan | Readers hoping to buy ABM Industries Incorporated (NYSE:ABM) for its dividend will need to make their move shortly, as the stock is about to trade ex-dividend. Typically, the ex-dividend date is one business day before the record date which is the date on which a company determines the shareholders eligible to receive a dividend. The ex-dividend date is of consequence because whenever a stock is bought or sold, the trade takes at least two business day to settle. Accordingly, ABM Industries investors that purchase the stock on or after the 6th of October will not receive the dividend, which will be paid on the 1st of November.
The company's next dividend payment will be US$0.19 per share, and in the last 12 months, the company paid a total of US$0.76 per share. Based on the last year's worth of payments, ABM Industries stock has a trailing yield of around 1.7% on the current share price of $45.01. Dividends are an important source of income to many shareholders, but the health of the business is crucial to maintaining those dividends. We need to see whether the dividend is covered by earnings and if it's growing.
Dividends are typically paid from company earnings. If a company pays more in dividends than it earned in profit, then the dividend could be unsustainable. ABM Industries paid out a comfortable 35% of its profit last year. Yet cash flows are even more important than profits for assessing a dividend, so we need to see if the company generated enough cash to pay its distribution. It paid out 12% of its free cash flow as dividends last year, which is conservatively low.
It's positive to see that ABM Industries's dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut.
Click here to see the company's payout ratio, plus analyst estimates of its future dividends.
NYSE:ABM Historic Dividend October 1st 2021
Have Earnings And Dividends Been Growing?
Businesses with strong growth prospects usually make the best dividend payers, because it's easier to grow dividends when earnings per share are improving. If earnings decline and the company is forced to cut its dividend, investors could watch the value of their investment go up in smoke. Fortunately for readers, ABM Industries's earnings per share have been growing at 18% a year for the past five years. The company has managed to grow earnings at a rapid rate, while reinvesting most of the profits within the business. Fast-growing businesses that are reinvesting heavily are enticing from a dividend perspective, especially since they can often increase the payout ratio later.
Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. Since the start of our data, 10 years ago, ABM Industries has lifted its dividend by approximately 3.1% a year on average. Earnings per share have been growing much quicker than dividends, potentially because ABM Industries is keeping back more of its profits to grow the business.
The Bottom Line
Is ABM Industries an attractive dividend stock, or better left on the shelf? We love that ABM Industries is growing earnings per share while simultaneously paying out a low percentage of both its earnings and cash flow. These characteristics suggest the company is reinvesting in growing its business, while the conservative payout ratio also implies a reduced risk of the dividend being cut in the future. There's a lot to like about ABM Industries, and we would prioritise taking a closer look at it.
On that note, you'll want to research what risks ABM Industries is facing. For example - ABM Industries has 2 warning signs we think you should be aware of.
A common investment mistake is buying the first interesting stock you see. Here you can find a list of promising dividend stocks with a greater than 2% yield and an upcoming dividend.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Based on the last year's worth of payments, ABM Industries stock has a trailing yield of around 1.7% on the current share price of $45.01. Readers hoping to buy ABM Industries Incorporated (NYSE:ABM) for its dividend will need to make their move shortly, as the stock is about to trade ex-dividend. Accordingly, ABM Industries investors that purchase the stock on or after the 6th of October will not receive the dividend, which will be paid on the 1st of November. | It's positive to see that ABM Industries's dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut. NYSE:ABM Historic Dividend October 1st 2021 Have Earnings And Dividends Been Growing? Readers hoping to buy ABM Industries Incorporated (NYSE:ABM) for its dividend will need to make their move shortly, as the stock is about to trade ex-dividend. | It's positive to see that ABM Industries's dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut. NYSE:ABM Historic Dividend October 1st 2021 Have Earnings And Dividends Been Growing? Earnings per share have been growing much quicker than dividends, potentially because ABM Industries is keeping back more of its profits to grow the business. | It's positive to see that ABM Industries's dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut. NYSE:ABM Historic Dividend October 1st 2021 Have Earnings And Dividends Been Growing? Readers hoping to buy ABM Industries Incorporated (NYSE:ABM) for its dividend will need to make their move shortly, as the stock is about to trade ex-dividend. |
29304.0 | 2021-10-01 00:00:00 UTC | ABM Industries Shares Cross Above 200 DMA | ABM | https://www.nasdaq.com/articles/abm-industries-shares-cross-above-200-dma-2021-10-01 | nan | nan | In trading on Friday, shares of ABM Industries, Inc. (Symbol: ABM) crossed above their 200 day moving average of $46.34, changing hands as high as $47.09 per share. ABM Industries, Inc. shares are currently trading up about 4.2% on the day. The chart below shows the one year performance of ABM shares, versus its 200 day moving average:
Looking at the chart above, ABM's low point in its 52 week range is $33.51 per share, with $55.48 as the 52 week high point — that compares with a last trade of $46.94.
Click here to find out which 9 other stocks recently crossed above their 200 day moving average »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In trading on Friday, shares of ABM Industries, Inc. (Symbol: ABM) crossed above their 200 day moving average of $46.34, changing hands as high as $47.09 per share. The chart below shows the one year performance of ABM shares, versus its 200 day moving average: Looking at the chart above, ABM's low point in its 52 week range is $33.51 per share, with $55.48 as the 52 week high point — that compares with a last trade of $46.94. ABM Industries, Inc. shares are currently trading up about 4.2% on the day. | In trading on Friday, shares of ABM Industries, Inc. (Symbol: ABM) crossed above their 200 day moving average of $46.34, changing hands as high as $47.09 per share. The chart below shows the one year performance of ABM shares, versus its 200 day moving average: Looking at the chart above, ABM's low point in its 52 week range is $33.51 per share, with $55.48 as the 52 week high point — that compares with a last trade of $46.94. ABM Industries, Inc. shares are currently trading up about 4.2% on the day. | In trading on Friday, shares of ABM Industries, Inc. (Symbol: ABM) crossed above their 200 day moving average of $46.34, changing hands as high as $47.09 per share. The chart below shows the one year performance of ABM shares, versus its 200 day moving average: Looking at the chart above, ABM's low point in its 52 week range is $33.51 per share, with $55.48 as the 52 week high point — that compares with a last trade of $46.94. ABM Industries, Inc. shares are currently trading up about 4.2% on the day. | In trading on Friday, shares of ABM Industries, Inc. (Symbol: ABM) crossed above their 200 day moving average of $46.34, changing hands as high as $47.09 per share. ABM Industries, Inc. shares are currently trading up about 4.2% on the day. The chart below shows the one year performance of ABM shares, versus its 200 day moving average: Looking at the chart above, ABM's low point in its 52 week range is $33.51 per share, with $55.48 as the 52 week high point — that compares with a last trade of $46.94. |
29305.0 | 2021-09-29 00:00:00 UTC | 5 Dividend Aristocrats Where Analysts See Capital Gains | ABM | https://www.nasdaq.com/articles/5-dividend-aristocrats-where-analysts-see-capital-gains-2021-09-29 | nan | nan | To become a "Dividend Aristocrat," a dividend paying company must accomplish an incredible feat: consistently increase shareholder dividends every year for at least 20 consecutive years. Companies with this kind of track record tend to attract a lot of investor attention — and furthermore, "tracking" funds that follow the Dividend Aristocrats Index must own them. With all of this demand for shares, dividend growth stocks can sometimes become "fully priced," where there isn't much upside to analyst targets.
But we here at ETF Channel have looked through the underlying holdings of the SPDR S&P Dividend ETF (which tracks the S&P High Yield Dividend Aristocrats Index), and found these five dividend growth stocks that actually still have fairly substantial upside to the average analyst target price 12 months out. Which means, if the analysts are correct, these are five dividend growth stocks that could produce capital gains in addition to their growing dividend payments.
In the first table below, we present the five stocks. The recent share price, average analyst 12-month target price, and percentage upside to reach the analyst target are presented.
STOCK RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET
Telephone & Data Systems Inc (Symbol: TDS) $19.45 $31.50 61.95%
ABM Industries, Inc. (Symbol: ABM) $44.93 $57.67 28.35%
SEI Investments Co (Symbol: SEIC) $60.05 $72.67 21.01%
Black Hills Corporation (Symbol: BKH) $62.28 $75.17 20.69%
International Business Machines Corp (Symbol: IBM) $137.47 $153.71 11.82%
The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. To ballpark that total return potential, we have added the current yield to the analyst target price upside, in order to arrive at the 12-month total return potential:
STOCK DIVIDEND YIELD % UPSIDE TO ANALYST TARGET IMPLIED TOTAL RETURN POTENTIAL
Telephone & Data Systems Inc (Symbol: TDS) 3.60% 61.95% 65.55%
ABM Industries, Inc. (Symbol: ABM) 1.69% 28.35% 30.04%
SEI Investments Co (Symbol: SEIC) 1.23% 21.01% 22.24%
Black Hills Corporation (Symbol: BKH) 3.63% 20.69% 24.32%
International Business Machines Corp (Symbol: IBM) 4.77% 11.82% 16.59%
Another consideration with dividend growth stocks is just how much the dividend is growing. We looked up the trailing twelve months worth of dividends shareholders of each of the above five companies have collected, and then also looked up the same number for the prior trailing twelve months. This gives us a rough yardstick to see how much the dividend has grown, from one trailing twelve month period to another.
STOCK PRIOR TTM DIVIDEND TTM DIVIDEND % GROWTH
Telephone & Data Systems Inc (Symbol: TDS) $0.675 $0.695 2.96%
ABM Industries, Inc. (Symbol: ABM) $0.735 $0.755 2.72%
SEI Investments Co (Symbol: SEIC) $0.7 $0.74 5.71%
Black Hills Corporation (Symbol: BKH) $2.14 $2.26 5.61%
International Business Machines Corp (Symbol: IBM) $6.5 $6.54 0.62%
These five stocks are part of our full Dividend Aristocrats List. The average analyst target price data upon which this article was based, is courtesy of data provided by Zacks Investment Research via Quandl.com.
Get the latest Zacks research report on BKH — FREE
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Telephone & Data Systems Inc (Symbol: TDS) $19.45 $31.50 61.95% ABM Industries, Inc. (Symbol: ABM) $44.93 $57.67 28.35% SEI Investments Co (Symbol: SEIC) $60.05 $72.67 21.01% Black Hills Corporation (Symbol: BKH) $62.28 $75.17 20.69% International Business Machines Corp (Symbol: IBM) $137.47 $153.71 11.82% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Telephone & Data Systems Inc (Symbol: TDS) 3.60% 61.95% 65.55% ABM Industries, Inc. (Symbol: ABM) 1.69% 28.35% 30.04% SEI Investments Co (Symbol: SEIC) 1.23% 21.01% 22.24% Black Hills Corporation (Symbol: BKH) 3.63% 20.69% 24.32% International Business Machines Corp (Symbol: IBM) 4.77% 11.82% 16.59% Another consideration with dividend growth stocks is just how much the dividend is growing. Telephone & Data Systems Inc (Symbol: TDS) $0.675 $0.695 2.96% ABM Industries, Inc. (Symbol: ABM) $0.735 $0.755 2.72% SEI Investments Co (Symbol: SEIC) $0.7 $0.74 5.71% Black Hills Corporation (Symbol: BKH) $2.14 $2.26 5.61% International Business Machines Corp (Symbol: IBM) $6.5 $6.54 0.62% These five stocks are part of our full Dividend Aristocrats List. | Telephone & Data Systems Inc (Symbol: TDS) $19.45 $31.50 61.95% ABM Industries, Inc. (Symbol: ABM) $44.93 $57.67 28.35% SEI Investments Co (Symbol: SEIC) $60.05 $72.67 21.01% Black Hills Corporation (Symbol: BKH) $62.28 $75.17 20.69% International Business Machines Corp (Symbol: IBM) $137.47 $153.71 11.82% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Telephone & Data Systems Inc (Symbol: TDS) 3.60% 61.95% 65.55% ABM Industries, Inc. (Symbol: ABM) 1.69% 28.35% 30.04% SEI Investments Co (Symbol: SEIC) 1.23% 21.01% 22.24% Black Hills Corporation (Symbol: BKH) 3.63% 20.69% 24.32% International Business Machines Corp (Symbol: IBM) 4.77% 11.82% 16.59% Another consideration with dividend growth stocks is just how much the dividend is growing. Telephone & Data Systems Inc (Symbol: TDS) $0.675 $0.695 2.96% ABM Industries, Inc. (Symbol: ABM) $0.735 $0.755 2.72% SEI Investments Co (Symbol: SEIC) $0.7 $0.74 5.71% Black Hills Corporation (Symbol: BKH) $2.14 $2.26 5.61% International Business Machines Corp (Symbol: IBM) $6.5 $6.54 0.62% These five stocks are part of our full Dividend Aristocrats List. | Telephone & Data Systems Inc (Symbol: TDS) $19.45 $31.50 61.95% ABM Industries, Inc. (Symbol: ABM) $44.93 $57.67 28.35% SEI Investments Co (Symbol: SEIC) $60.05 $72.67 21.01% Black Hills Corporation (Symbol: BKH) $62.28 $75.17 20.69% International Business Machines Corp (Symbol: IBM) $137.47 $153.71 11.82% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Telephone & Data Systems Inc (Symbol: TDS) 3.60% 61.95% 65.55% ABM Industries, Inc. (Symbol: ABM) 1.69% 28.35% 30.04% SEI Investments Co (Symbol: SEIC) 1.23% 21.01% 22.24% Black Hills Corporation (Symbol: BKH) 3.63% 20.69% 24.32% International Business Machines Corp (Symbol: IBM) 4.77% 11.82% 16.59% Another consideration with dividend growth stocks is just how much the dividend is growing. Telephone & Data Systems Inc (Symbol: TDS) $0.675 $0.695 2.96% ABM Industries, Inc. (Symbol: ABM) $0.735 $0.755 2.72% SEI Investments Co (Symbol: SEIC) $0.7 $0.74 5.71% Black Hills Corporation (Symbol: BKH) $2.14 $2.26 5.61% International Business Machines Corp (Symbol: IBM) $6.5 $6.54 0.62% These five stocks are part of our full Dividend Aristocrats List. | Telephone & Data Systems Inc (Symbol: TDS) $19.45 $31.50 61.95% ABM Industries, Inc. (Symbol: ABM) $44.93 $57.67 28.35% SEI Investments Co (Symbol: SEIC) $60.05 $72.67 21.01% Black Hills Corporation (Symbol: BKH) $62.28 $75.17 20.69% International Business Machines Corp (Symbol: IBM) $137.47 $153.71 11.82% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Telephone & Data Systems Inc (Symbol: TDS) 3.60% 61.95% 65.55% ABM Industries, Inc. (Symbol: ABM) 1.69% 28.35% 30.04% SEI Investments Co (Symbol: SEIC) 1.23% 21.01% 22.24% Black Hills Corporation (Symbol: BKH) 3.63% 20.69% 24.32% International Business Machines Corp (Symbol: IBM) 4.77% 11.82% 16.59% Another consideration with dividend growth stocks is just how much the dividend is growing. Telephone & Data Systems Inc (Symbol: TDS) $0.675 $0.695 2.96% ABM Industries, Inc. (Symbol: ABM) $0.735 $0.755 2.72% SEI Investments Co (Symbol: SEIC) $0.7 $0.74 5.71% Black Hills Corporation (Symbol: BKH) $2.14 $2.26 5.61% International Business Machines Corp (Symbol: IBM) $6.5 $6.54 0.62% These five stocks are part of our full Dividend Aristocrats List. |
29306.0 | 2021-09-22 00:00:00 UTC | 2 Stocks I'm Never Selling | ABM | https://www.nasdaq.com/articles/2-stocks-im-never-selling-2021-09-22 | nan | nan | They say never say never, but I'll never sell the two stocks below. A buy-and-hold mindset offers investors the best opportunity for generating market-beating returns.
Adopting a set-it-and-forget-it approach to buying stocks has proven to be a valuable strategy, and though these two companies may not be forever holdings for every investor, you should definitely take a closer look at these top-notch investments to see why I say I'm never selling them.
Image source: Getty Images.
ABM Industries
I like Peter Lynch's idea of buying boring businesses because they tend to lull the market into ignoring them, and ABM Industries (NYSE: ABM) is a good example of a forgettable company.
Although ABM has been in operation for well over a century, it's a good bet many investors have not heard of this company. Those who have might think it makes anti-ballistic missiles rather than what it actually does: janitorial services and facilities management. See? You're already asleep.
Yet what it lacks in glitz it makes up for with steady-as-she-goes performance. That's not to say ABM's stock won't decline; last year, during the start of the pandemic, it suffered a dramatic drop when offices and companies were forced to close. Yet it has bounced back and is up 20% year to date, slightly ahead of the S&P 500's return. And there's good reason to believe it will continue on a similar trajectory going forward.
As a result of the coronavirus outbreak, ABM developed stringent cleaning protocols called EnhancedClean jobs that helped it more than double adjusted operating profits last year. With people back on the job, but COVID-19 variants wreaking havoc still, the need for sanitary cleaning practices is more important than ever.
Equally important has been ABM's willingness to reward its shareholders with a long track record of paying dividends and raising the payout each year. The cleaning specialist has paid a dividend for 56 years and raised it for 50 consecutive years, making it a Dividend King.
It's not a company that will wow you with meteoric stock moves, but ABM Industries is a business that has a steady hand on the wheel.
Image source: Getty Images.
Smith & Wesson Brands
A bit more volatile is iconic gunmaker Smith & Wesson Brands (NASDAQ: SWBI). Its stock can rise and fall based on perceived threats to gun ownership and regulation.
Despite the wild swings in its share price -- Smith & Wesson's stock doubled in value in a matter of weeks in June like it was some kind of meme stock only to return to its lower level over the next two months -- it has inexorably climbed ever higher as demand for firearms has grown unabated.
Over the past 20 years or so, Smith & Wesson has returned over 55,000% compared to a near-300% return for the broad market index. Since the beginning of 2020, the gunmaker has nearly tripled in value, and as society becomes ever more polarized and the desire for personal protection grows more acute, the forces pushing gun ownership higher will strengthen as well.
The National Shooting Sports Foundation reports over 8 million people bought their first firearm last year, and through the first six months of 2021, it estimates another 3.2 million individuals purchased their first gun. That's a third of the nearly 9.8 million background checks for a gun sale conducted by the FBI during that time.
Smith & Wesson is the largest gunmaker in the country, and though the rate of gun sales growth is slowing, it still remains elevated, with profits soaring year over year. Its reported net income for the quarter that ended July 31 jumped 77% to $76.9 million, or $1.57 per share, compared to last year's adjusted earnings of $0.83 per share.
Smith & Wesson also began paying a modest dividend last year to let investors share in its success. The payout currently yields 1.5% annually.
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Rich Duprey owns shares of ABM Industries and Smith & Wesson Brands, Inc. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | As a result of the coronavirus outbreak, ABM developed stringent cleaning protocols called EnhancedClean jobs that helped it more than double adjusted operating profits last year. ABM Industries I like Peter Lynch's idea of buying boring businesses because they tend to lull the market into ignoring them, and ABM Industries (NYSE: ABM) is a good example of a forgettable company. Although ABM has been in operation for well over a century, it's a good bet many investors have not heard of this company. | See the 10 stocks *Stock Advisor returns as of September 17, 2021 Rich Duprey owns shares of ABM Industries and Smith & Wesson Brands, Inc. ABM Industries I like Peter Lynch's idea of buying boring businesses because they tend to lull the market into ignoring them, and ABM Industries (NYSE: ABM) is a good example of a forgettable company. Although ABM has been in operation for well over a century, it's a good bet many investors have not heard of this company. | See the 10 stocks *Stock Advisor returns as of September 17, 2021 Rich Duprey owns shares of ABM Industries and Smith & Wesson Brands, Inc. ABM Industries I like Peter Lynch's idea of buying boring businesses because they tend to lull the market into ignoring them, and ABM Industries (NYSE: ABM) is a good example of a forgettable company. Although ABM has been in operation for well over a century, it's a good bet many investors have not heard of this company. | See the 10 stocks *Stock Advisor returns as of September 17, 2021 Rich Duprey owns shares of ABM Industries and Smith & Wesson Brands, Inc. ABM Industries I like Peter Lynch's idea of buying boring businesses because they tend to lull the market into ignoring them, and ABM Industries (NYSE: ABM) is a good example of a forgettable company. Although ABM has been in operation for well over a century, it's a good bet many investors have not heard of this company. |
29307.0 | 2021-09-20 00:00:00 UTC | Surprising Analyst 12-Month Target For SDY | ABM | https://www.nasdaq.com/articles/surprising-analyst-12-month-target-for-sdy-2021-09-20 | nan | nan | Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the SPDR— S&P— Dividend ETF (Symbol: SDY), we found that the implied analyst target price for the ETF based upon its underlying holdings is $133.25 per unit.
With SDY trading at a recent price near $118.88 per unit, that means that analysts see 12.08% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of SDY's underlying holdings with notable upside to their analyst target prices are Telephone & Data Systems Inc (Symbol: TDS), South Jersey Industries Inc (Symbol: SJI), and ABM Industries, Inc. (Symbol: ABM). Although TDS has traded at a recent price of $19.84/share, the average analyst target is 58.77% higher at $31.50/share. Similarly, SJI has 28.57% upside from the recent share price of $22.75 if the average analyst target price of $29.25/share is reached, and analysts on average are expecting ABM to reach a target price of $57.67/share, which is 27.92% above the recent price of $45.08. Below is a twelve month price history chart comparing the stock performance of TDS, SJI, and ABM:
Below is a summary table of the current analyst target prices discussed above:
NAME SYMBOL RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET
SPDR— S&P— Dividend ETF SDY $118.88 $133.25 12.08%
Telephone & Data Systems Inc TDS $19.84 $31.50 58.77%
South Jersey Industries Inc SJI $22.75 $29.25 28.57%
ABM Industries, Inc. ABM $45.08 $57.67 27.92%
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
10 ETFs With Most Upside To Analyst Targets »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | SPDR— S&P— Dividend ETF SDY $118.88 $133.25 12.08% Telephone & Data Systems Inc TDS $19.84 $31.50 58.77% South Jersey Industries Inc SJI $22.75 $29.25 28.57% ABM Industries, Inc. ABM $45.08 $57.67 27.92% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of SDY's underlying holdings with notable upside to their analyst target prices are Telephone & Data Systems Inc (Symbol: TDS), South Jersey Industries Inc (Symbol: SJI), and ABM Industries, Inc. (Symbol: ABM). Similarly, SJI has 28.57% upside from the recent share price of $22.75 if the average analyst target price of $29.25/share is reached, and analysts on average are expecting ABM to reach a target price of $57.67/share, which is 27.92% above the recent price of $45.08. | Three of SDY's underlying holdings with notable upside to their analyst target prices are Telephone & Data Systems Inc (Symbol: TDS), South Jersey Industries Inc (Symbol: SJI), and ABM Industries, Inc. (Symbol: ABM). Similarly, SJI has 28.57% upside from the recent share price of $22.75 if the average analyst target price of $29.25/share is reached, and analysts on average are expecting ABM to reach a target price of $57.67/share, which is 27.92% above the recent price of $45.08. SPDR— S&P— Dividend ETF SDY $118.88 $133.25 12.08% Telephone & Data Systems Inc TDS $19.84 $31.50 58.77% South Jersey Industries Inc SJI $22.75 $29.25 28.57% ABM Industries, Inc. ABM $45.08 $57.67 27.92% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? | Similarly, SJI has 28.57% upside from the recent share price of $22.75 if the average analyst target price of $29.25/share is reached, and analysts on average are expecting ABM to reach a target price of $57.67/share, which is 27.92% above the recent price of $45.08. Three of SDY's underlying holdings with notable upside to their analyst target prices are Telephone & Data Systems Inc (Symbol: TDS), South Jersey Industries Inc (Symbol: SJI), and ABM Industries, Inc. (Symbol: ABM). Below is a twelve month price history chart comparing the stock performance of TDS, SJI, and ABM: Below is a summary table of the current analyst target prices discussed above: | SPDR— S&P— Dividend ETF SDY $118.88 $133.25 12.08% Telephone & Data Systems Inc TDS $19.84 $31.50 58.77% South Jersey Industries Inc SJI $22.75 $29.25 28.57% ABM Industries, Inc. ABM $45.08 $57.67 27.92% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of SDY's underlying holdings with notable upside to their analyst target prices are Telephone & Data Systems Inc (Symbol: TDS), South Jersey Industries Inc (Symbol: SJI), and ABM Industries, Inc. (Symbol: ABM). Similarly, SJI has 28.57% upside from the recent share price of $22.75 if the average analyst target price of $29.25/share is reached, and analysts on average are expecting ABM to reach a target price of $57.67/share, which is 27.92% above the recent price of $45.08. |
29308.0 | 2021-09-16 00:00:00 UTC | Market News, the Business of Football, and Sports Betting | ABM | https://www.nasdaq.com/articles/market-news-the-business-of-football-and-sports-betting-2021-09-16 | nan | nan | Lululemon Athletica (NASDAQ: LULU) shares hit an all-time high on earnings. Dave & Buster's (NASDAQ: PLAY) delivers a surprise. Boston Beer (NYSE: SAM) falls on sluggish seltzer sales, and fintech company Affirm Holdings (NASDAQ: AFRM) soars on strong revenue growth and an Amazon (NASDAQ: AMZN) partnership. In this episode of Motley Fool Money, Motley Fool analysts Emily Flippen and Jason Moser discuss those stories and talk about the latest from RH (NYSE: RH), Coupa Software (NASDAQ: COUP), Paypal Holdings (NASDAQ: PYPL), and Casey's General Stores (NASDAQ: CASY).
Plus, Villanova sports law professor Andrew Brandt talks about the business of football and the future of sports betting.
To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. To get started investing, check out our quick-start guide to investing in stocks. A full transcript follows the video.
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This video was recorded on September 10, 2021.
Ron Gross: It's the Motley Fool Money radio show. I'm Ron Gross sitting in for Chris Hill. Joining me today are senior analysts Emily Flippen and Jason Moser. Fools, how are you doing?
Jason Moser: Hey.
Emily Flippen: Hey, Ron.
Gross: Good to see you, Fools. Earnings season isn't over yet. Today we're going to talk about fintech, home furnishings, and video games. But we begin with something you'll never see me wearing, and that is yoga pants. On Thursday, Lululemon reported results that handily beat expectations and the shares were up more than 10%. Emily, results look strong. Should investors be concerned about the supply chain issue they talked about or is that just a temporary problem?
Flippen: Supply chain issues are completely overblown for Lululemon. Not just because they're impacting all manufacturers across numerous industries, but because Lululemon is in the enviable position of being able to pass along most of these costs to customers, which means they've mitigated their supply delays with things like more air freight. They can afford to lose some points on their gross margins over the short-term in comparison to their competitors. Moreover, their clothing tends to be less seasonal than other retailers, which means they generally have less inventory risk and whose stable offerings throughout the year does also insulate them from the supply disruptions. But Ron, you should really never say never when it comes to yoga pants. Because if you look at this quarter for Lululemon, a bright spot was actually their men's apparel. It grew faster than their women's apparel on a two-year basis. Total revenue was up more than 60% year over year. I guess apparently, we're not all done pretending like we're working out. I imagine there are some people out there who are putting their sports bras on for Lululemon and jumping on their Peloton or jumping in front of their Mirror. But I think even more people are just putting on their comfy Lululemon clothing because they adopted this very comfortable lifestyle from the pandemic that they are pulling over into their daily lives even as they go back to the office.
Gross: I will keep an open mind. Companies like Lululemon, they've obviously benefited from work-from-home, from exercise at home. Let's have some fun for both of you. What's one current trend that you think stays or goes away post COVID, Emily?
Flippen: For me, I think it's our consumption trend. I think what stood out to me over the past few years in comparison to how Americans shop is just how willing we are to still spend money even though we're not going anywhere. That's a trend that I don't see changing. The average American bought over 68 pieces of clothing every year. I mean, 68 pieces of clothing, that's incredible. That largely didn't change as a result of 2020. I don't expect that to change into 2021 either.
Gross: Jason?
Moser: I do think that the delivery phenomenon is here to stay. I mean, much as Amazon really gave us as consumers a new way to value our time. I think this is just the next step in that evolution. The pandemic really more or less hastened it, but I think folks are just realizing there are other ways to utilize their time and if something as simple as grocery delivery or food delivery can help free up a little bit more time, I think consumers just value time today more so than we ever have because we have so many more options. I think the delivery phenomenon is here to stay.
Gross: I get a big juicy burger delivered and then I'll pretend to hop on my Peloton, that should work perfectly. Last week, shares of buy now, pay later company Affirm shot higher when the company announced a new trial with Amazon. On Friday, shares were up another 25% as investors seemed very pleased with the company's fiscal 2022 guidance. Jason, guidance was strong, but how did the quarter look to you?
Moser: Guidance was strong. But when you look at the quarter, total revenue was up 71% from a year ago, which is clearly very strong. It turns out that when you saddle up with companies like Shopify and Amazon, the market likes that, Ron. Now kidding aside, these relationships really do matter a lot. I think they address one of the key risks in customer concentration with Affirm. They really were levered to Peloton in a big way for a long time. They are doing exactly what investors have been hoping for in diversifying their customer base. It's not the magic bullet, so to speak but to my mind, it was paramount for this business to be able to have a shot at real growth and to just put these numbers in to context, for the nine months ended March 31, 2021, approximately 31% of Affirm's total revenue was driven by Peloton. Now, that number was actually up from a year-ago as well. These relationships are going to be very valuable as they should help ultimately bring that number down, which is obviously very good.
Gross: On Wednesday, RH, the company formerly known as Restoration Hardware, beat expectations of both the top and bottom lines. Emily, RH shares are up a whopping 2,300% over the past five years and the strong operating results continue. This is just a home furnishing retailer, right?
Flippen: No. Anytime a business goes through a name change, you know, they're trying to reinvent themselves. It's like going through a bad breakup and getting a different haircut or dying your hair. This is what Restoration Hardware is doing. For so long they've been known as a home furnishing retailer, luxury retailer, but home furnishings nonetheless, and CEO Gary Friedman has made a really concerted effort over the past few years to completely reinvent this business. I and many investors have been skeptics, I suppose, of their ability to become more of a lifestyle brand as opposed to a home furnishing retailer but they are certainly proving it out. The opportunity is still very much ahead of this business despite its meteoric stock price rise. They're building an entire ecosystem around what it means to be a luxury brand. In fact, they even announced over this recent quarter that they're launching a platform called the world of RH, which really acts as a portal to brand and style advice, but more importantly, as a funnel into their media arm that they're now partnering with lifestyle and luxury influencers to create content for brand leaders. Then they're getting into things like the retail and real estate market. They are actually purchasing real estate, things like hotels, homes, apartments, condos, selling them to people. They're fully furnished, already made, move-in ready. The idea is to serve consumers who have more money than they have time. I'm not quite sure what success looks like for this business, but it is certainly an understatement to call it simply a home furnishings retailer.
Gross: Has their loyalty program been a big part of this, or is that too old school for this innovative company?
Flippen: It's a little old school, Ron, I have to admit. I think what's more important for them moving forward is probably their galleries. This isn't your Pier One import, where you walk in and you're looking to make a purchase. It's more like you're walking into a Restoration Hardware gallery or an RH gallery, as I should say, and you're conceptualizing your space. It has much less to do with loyalty and much more to do with lifestyle.
Gross: Earlier this week, Coupa Software posted second-quarter results that beat expectations and the stock jumped. But as the week wore on, shares gave back most of their gain. Jason, what gives? Good report or not so good report?
Moser: I think it was a good report, but it had its fair share of caution. I mean, the quarter itself was strong. I mean, it grew the top line 42% from a year ago on subscription revenue, which makes up the overwhelming majority of the business was up 40%. It's been a challenging year from a stock perspective, shares were down around 25%, but I think a lot of this really is valuation-related. Right now the stock is actually valued around 53 times gross profit, around 30 times sales. But when you listen to the call, they mentioned something on the call that I think gave investors maybe a little pause. They noted that while they're excited about the prospects for the back half of the year, they continue to incorporate what they call a heightened level of caution in their outlook. That's something that investors just need to keep in the back of their minds. It really is all about the future but Coupa remains a strong business and a very attractive market opportunity, helping businesses manage their spending better. Roughly $2.8 trillion in cumulative spend under management that Coupa reported over this past quarter. I'd say a strong quarter, it's probably a little bit more valuation-related, a little bit of a cautious outlook, it's understandable.
Gross: Coupa, not afraid to make an acquisition. Management stated that their long-term compounding growth profile of 30% hasn't changed. Do you think they need to continue to make acquisitions to get there or can they do that organically?
Moser: I think they can probably do it organically from this point, but it's worth noting that competition is heating up in the space. We saw recently here, another company we talk about on the show, Bill.com. They recently made an acquisition of a company called DivvyPay, which pursues that same market opportunity in business spend management. We've seen Bill.com really performing very well also. This is not a market that Coupa can just own at its own leisure. They will have to keep those competitive fires burning, so to speak. But as I said, it's a massive market opportunity and oftentimes with things like that, you're going to have more than one winner. I suspect Coupa is in a pretty good place.
Gross: Coming up, we'll grab a hard seltzer and play some video games. You're listening to Motley Fool Money.
[...]
Welcome back to Motley Fool Money. Ron Gross sitting in for Chris Hill. Earlier in the week, PayPal announced that it would buy Japanese buy now, pay later start-up Paidy for about $2.7 billion. Jason, as we saw with the Affirm-Amazon deal and the Square-AfterPay acquisition, buy now, pay later is certainly hot. Does this even move the needle for PayPal though?
Moser: Perhaps. There absolutely is a potential in the long run, no question there. It's a smaller acquisition though in the context of this market. But Japan is a $5 trillion economy with a population of around 125 million people, and it's the third largest e-commerce market in the world. Online shopping volume has more than tripled over the last 10 years to around $200 billion. That's the market really the Paidy is playing into, it's got this two-sided network with more than 6 million registered users, more than 700,000 merchants, and it's already accepted at the top 10 Japanese marketplaces. I think it's an interesting point to note that while digital commerce and cashless transactions are still growing in Japan, around 70% of all purchases are paid for in cash, interestingly enough. As a culture, they tend to steer away from those heavy debt loads. We'll want to see that number come down over time for this to really move the needle, I think. But all-in-all, I do understand the attraction there. It gives PayPal entry into a new market. It's probably easier in this case for them to buy it as opposed to building it.
Gross: Casey's General Stores reported fiscal first-quarter results that included a slight decline in earnings, but the company did increase its dividend for the 22nd year in a row. Emily, what stood out to you in this report? Was it strong or not so strong?
Flippen: Ron, this was an excellent quarter for Casey's General Stores. Do you think it's an overstatement if I were to say that Casey's is the best publicly traded convenience store on the market today?
Moser: Probably not. But I can't really seem to pull another competitive name out on top of my head.
Gross: Exactly. They're private, the ones I would think of.
Flippen: There's no other publicly traded convenience stores that can come across people's mind because in general, convenient stores aren't a particularly lucrative place to invest, and that's because they are heavily impacted by things that are outside of their control, like gas and travel demand. While investors may look at this quarter and say, "Wow, revenue was up 50% year over year," it's a bit of a meaningless metric when it comes to Casey's because it's so heavily impacted by gas prices and travel demand, both of which were extremely low this time last year. That being said, earnings were a bright spot. They were a tad below their all-time high earnings per share, but still very high for Casey's largely due to those costs, again, coming down as a result of the pandemic. What stood out to me though was their private-label sales rose to 4.4% in the quarter. Management has the lofty goal of getting that to 10% over the next few years to match the industry average. If they're able to do that, that can meaningfully impact their gross margins which would be a really interesting thing to see evolve for Casey's. But as great as this quarter was, I still can't feel like buying Casey's stock is just settling for second best. I know WaWa, Sheetz, Buc-ee's, the Texas Buc-ee's, they aren't publicly traded, but if they were publicly traded, I can't help but think they would just eat Casey's lunch.
Gross: In this world of tech and innovation, it's hard to get your money invested in a convenience store or a general store. Now they've had quite a success and it's been a very strong business over the years, but it would seem to me that perhaps there's better places for one's money.
Flippen: Certainly.
Gross: Dave and Buster's reported second-quarter results that easily beat expectations sending the shares higher. Jason, comps are tough here because of what COVID did to 2020 obviously. How do the results look if we compare them to 2019?
Moser: Yeah, that's a good question. I'm glad you asked that because you're right. Comps to 2020 are more or less meaningless. If we compare it to 2019, you get a better picture and revenue of around $378 million compared to $345 million in 2019. Comps were up 3.6% over that same period. It's been a bit of a rollercoaster year so far, but what a difference a year does make. If you remember, just a year ago they were using the phrase "going concern" in their 10-Q. There were questions at the time as to whether they can actually survive the pandemic, and the market was really punishing the stock for it. But thankfully, I think for investors, they're past that. That said, it is a business with some fundamental challenges management will need to take on. But the good news is that it does really seem they are meeting that challenge.
Gross: Quick question for both of you. If you're the CEO of Dave and Buster's, you've newly become the CEO of Dave and Buster's, what's one thing you do to improve the business? Emily?
Flippen: They need better advertisements, they need a facelift, they need to change their image and raise the public, because right now I think people are write-off Dave and Buster's despite the investments they've made in technology over the years.
Gross: Jason?
Moser: After reading through the call, they're doing what I was hoping they would do. Focusing a little bit more on things like sports and maybe they'll be able to incorporate sporting events, some type of sport betting dynamic into the business there. They just inked a partnership with Pardon My Take, Barstool Sports. Pardon My Take, that podcast from Barstool Sports. You got Big Cat and those guys are going to be showing up at Dave and Buster's for some livestreamed events. I think that will be a lot of fun, it will attract a new market demographic there that should help grow traffic over time.
Gross: When I was last in Dave and Buster's, let's call it 10 years ago, I had a barbecue, bourbon, chicken that was quite tasty. If I'm CEO, I'm doubling down on barbecue bourbon chicken, all the way. Good stuff.
On Wednesday, Boston Beer withdrew the guidance it gave in July saying it had overstated demand for its hard seltzer business. Emily, is the hard seltzer trend over? Please say yes.
Flippen: I hope it's not. As a hard seltzer aficionado myself, I know that my consumption of Truly or White Claw, and all the numerous other hard seltzer brands has not necessarily decreased over the past year. But I will say there are a lot of people that are no longer buying their hard seltzers in stores. They're going out with friends where the distribution for hard seltzers tends to be much smaller. For that reason, Boston Beer did withdraw that prior guidance. It's not great to see a withdrawal of guidance so soon after they issued that guidance, which was already much lower than the guidance that they had issued even earlier this year. The trend is certainly downward. But I will say this, despite what happens with hard seltzer, despite how fragmented the industry is, I do think that Boston Beer has a lot of opportunities ahead of it. They have reinvented themselves as a business. They're not afraid to move fast. They have great distribution, they've made smart partnerships, and I think they are well prepared for whatever the next best thing is.
Gross: Do you think there are just too many hard seltzer brands out there? If so, do some just go away or is there a chance to be consolidated here, or is there really no need for consolidation because they're all basically the same thing?
Flippen: As a consumer, I think there's never too many brands. But I do think your point as an investor, I don't think that we'll see the number of brands sustain themselves over the long term that we see today. But the big ones, the ones by ABM, Boston Beer, Constellation Brands, I expect those have long-term staying power.
Gross: Jason, you're a golfer, you're out on the golf course, you crack and open a nice cold Truly?
Moser: God no, Ron, never. I've never had a hard seltzer in my life. I would happily crack open a Samuel Adams Oktoberfest or maybe this new fest beer that they've got. But I'm good on the seltzer.
Gross: Nice. Fools, we'll see you a little bit later in the show. Up next, a conversation with Andrew Brandt, Executive Director at the Moorad Center of Sports Law at Villanova University on why the NFL is the undisputed king of sports in America. Stay right here. You're listening to Motley Fool Money.
[...]
Welcome back to Motley Fool Money, I'm Ron Gross. Earlier this week, Chris Hill interviewed Andrew Brandt, a Sports Illustrated columnist, host of the business of sports podcast, and the executive director at the Morehead Center of Sports at Villanova University. They discussed the rise of sports betting and whether it's a zero-sum industry, the current group of rookie quarterbacks and why the NFL is the undisputed king of sports in America.
Chris Hill: The NFL is more popular than ever. When you think about the threat of COVID last year and what that had the potential to do to the season back earlier then those players kneeling, it's going to turn off the fans. It seems like every year or two someone is eager to write the obituary of the NFL. Are you at all surprised that it is still, as you put it recently in one of your columns, the undisputed king of sports in the United States?
Andrew Brandt: Chris, I'm not surprised at all. I think as you mentioned, it seems every year there's something that's threatening the continued prosperity of the NFL as King of the Mountain when it comes to sports. Like you mentioned, one year it was the kneeling and protests and social causes and there was a faction that said that's going to be the death of the NFL. Another year it was concussions and how brutal the sport is and that's going to take people away from playing the game and thereby losing interest in the game and young people aren't going to play contact football. Then in the past year and a half, of course, it's been COVID. The fact that they are going through all these protocols and people are going to get turned away. It's as strong as ever. In fact, valuations came out, they are through the roof for all the teams done by Forbes every year and that's no surprise because the one thing that the NFL has that no other league comes close to is the product on television. It just continues to soar in ratings and even if ratings are off at dip, a little dip who cares? It's the most powerful programming on television. It's the only appointment television really for a lot of people including myself and they just did, they, the NFL owners, just completed $110 billion of television contracts. That's right, with a "B." $110 billion over the next 12 years. That hasn't even kicked in, it won't until 2023.
You can just talk about whatever you want to talk about with the NFL, it's there and my last comment is on ratings. Ratings don't really matter. Let's say we were in week five and something happens and the ratings are really down for the NFL, who cares? They just inked $110 billion for the next 12 years. If ratings are terrible, ratings are great. It's all locked in right now.
Hill: One of the things you and I have talked about over the years is the issue around health and safety. Obviously COVID and the role of COVID and which players are vaccinated or unvaccinated. That's a big topic this preseason but somewhat overlooked in the conversation about player health and safety, is the fact that the schedule has been expanded to 17 games. For more than 40 years, it was a 16-game schedule. Now it's 17 games, I don't think it's going to be another 40 years before they look to expand to 18 games and I get that more games means more money, but do you think it's good business in the long run?
Brandt: I think it's always good business for the NFL to have more inventory and more product. From the player's side, of course not. They're giving up more inventory, more of their bodies, more of their career, extra game if you can lay it on that means that potentially loss of a year of their lifetime in football. I was very critical a year ago, Chris, of the collective bargaining agreement when the NFL players gave away that precious asset of the 17th game. Now they were getting some massive increase in overall revenues, they are getting some big, I don't know, deal that they were going to live off of for the next 12 year of their CBA, great, but they didn't get enough in the return to give up this massive give of the 17th game. It's happened. As you indicated, 40 years of 16 games, I think it's an obvious statement, but it needs to be said, we're not going back. We will never, ever see a 16-game schedule in the NFL again. We may see an 18-game schedule in 10 years, but now we're at 17 and no one knows, it's new uncharted territory, how it's going to look this year, what's going to happen. The attrition we can expect will be further. We have, pick a number, 25% of the league gets injured over 16-game season. Maybe it's 29% or 31%, or 33% of the league gets hurt over 17-game season. By hurt, I mean something that will keep a player out of a game or maybe even three games. Yeah, at one point, Chris, we heard well, we're going to do 17, but players can only play 16. Well, that went by the way so pretty quick. Players will play if they're able, all 17, and again, the toll will increase year-over-year so we're in uncharted territory here we go, 17 games for the first time ever.
Hill: Another big story line during the pre-season is something that goes against what fans have heard for decades about rookie quarterbacks. They need time to adjust to the speed of the game, they should take a year or two to be on the sidelines, hold a clipboard back up a veteran and yet we've got three teams that are going to be starting rookie quarterbacks week one. I get the sense that you like this move.
Brandt: I do, but let me give my full disclosure because I know everyone will come back at me. Yes, there were the Packers for 10 years. Yes, I went through this. But they're different. Let's not put the Packers in this discussion because in each case, 15 years ago and now, the backup first-round quarterback is playing behind a bonafide first ballot Hall of Fame quarterback. Let's put that aside. Now take the other five teams this year that have the first-round quarterback. As you mentioned, Jacksonville, Trevor Lawrence, right away, Jets, Zach Wilson right away, and just found out last week Patriots' Mac Jones over Cam Newton right away. The two holdouts are the Bears who drafted Justin Fields are now going to go with Andy Dalton. The 49ers who drafted Trey Lance and gave up a ton to get him still going with Jimmy Garoppolo. I think that's not optimal because I think of a couple of things. No. 1, Garoppolo and Dalton are not your future. These other players are. In my words, get on with it. Just get on with it. No. 2, these guys are going to replace them, whether it's going to be game three, game four, game five, game seven, game nine, it's going to happen. What are we doing? If I'm talking to the 49ers, or the Beyers, what do we do? This idea of sitting and learning, what are they learning by sitting?
My point is, you're going to have drawing pains with first-round quarterbacks or with any rookie quarterback. Why not get it over in week one through five instead of weeks five through 10, that's my feeling. My prediction, Chris, is I'm going to stake a claim not only by Halloween, but by the end of September, all five will be starting. That's my claim.
Hill: Well, and if you're the television networks, you have to be pretty happy about the youth movement for NFL quarterbacks. It's a glamorous position, Drew Brees just retired, Tom Brady, I don't know at some point in the far future he will retire and this crop of rookie quarterbacks increases the likelihood that new stars come into the league.
Brandt: On that point, this is another problem for the 49ers and Bears, Chris, because, you know as well as I do, everyone listening knows, the Bears starter, the 49ers starter throw a bad interception, had a bad game. The drumbeat is going to be loud. Get the rookie in because they are the most popular players on that team right now from a fan standpoint. These five quarterbacks, like you mentioned, are bringing a tremendous amount of buzz to the league. They were the most-watched players in preseason, I think that's safe to say. Yes, that's great because again, Brady will move on, Brees moved on.
Brandt: Roethlisberger will move on, we just had Philip Rivers move on, and a side note to all this, I think Deshaun Watson and Aaron Rodgers will be playing for different teams in 2022. We'll have new young quarterbacks playing for those existing teams.
Hill: Anyone who is consuming any type of information about the NFL is almost certainly running into advertising from some business in the sports betting industry. It's something you and I have talked about before, and speaking of drum beats, it only gets louder and louder. It's amazing to me the incentives that are being thrown out in commercials on television just to get people into their system. Two-part question, one, does the money surprise you at all? Then two, do you look at sports betting as more of a zero-sum game than other industries because it does seem like something where once you've got your betting app that you're familiar with, you're probably just sticking with the one.
Brandt: I don't know where to start here, Chris, because there is no area of sports law, which I teach, or sports business, which I teach, that has undergone as big a sea change as this -- none. Because you and I were talking years ago. It was the complete taboo, it was pick a story, it was Tony Romo not allowed to go to a fantasy football convention in Vegas simply because it was attached to a casino The Sands in Las Vegas. The suspensions and kicked out of Pete Rose, of Alex Karras, of Paul Hornung, just name it. What changed? Well, one thing changed in 2015 was the market share embrace of fantasy. Where two start-ups, which essentially were, FanDuel and DraftKings, bombarded the NFL with advertising which again was accepted and embraced because it was fantasy, it was soft gambling. It's like pick your mashup team and having fun with it. Well, then the courts became involved because the NFL, NBA, NCAA, NHL, NBA, they were all fighting against this because of integrity, we know that word, and they lost. Seven years in court fighting New Jersey who wanted to implement sports betting, they lost, the leagues lost. I'll never forget the day, May 14, 2018, and the floodgates opened. Now we're in 23 states plus the District of Columbia, not only legalized sports betting, but having, like you said, mobile, and we're going to have more in-stadium sports facilities, sportsbooks. We have it in Washington in the arena, we have it at MetLife although it's at Meadowlands next door to the stadium, it's happening.
Arizona and Glendale have it in the stadium. It's de rigueur now for teams to have an embrace of sports betting. The zero-sum is a great question because now there's a gold rush, a land rush, get in, and everybody is doing partnerships, Barstool with Penn Gaming and FOX sports with PointsBet, ESPN is looking for their partner. Once that matches up, then there's going to be no one left. You're right. We're in this golden age of sports betting, where in a couple of years, there's no more land to be mined and everybody's matching up. I think the biggest point is on that day I referenced when the Supreme Court legalized sports betting. There was a statement from Mark Cuban who's always prescient in these matters, the owner of the Dallas Mavericks, who said this will double, he used the word double, the value of sports franchises. We're not there yet. But if we look at sports value of franchises in 2018 and maybe in five more years, it may have doubled, and sports betting may have been a big part of that. Everyone's looking for new revenue sources. This is a big one.
Hill: Last thing and then I'll let you go. This is local to where I am and where you grew up. The Washington football team has reportedly narrowed down its list of new names. Armada, Brigade Commanders, Defenders, Presidents, Red Hogs, Red Wolves, and then just sticking with the Washington Football Team. Is there some business upside to changing it because as you and I were talking during the break, it seems like they backed into the Washington Football Team, and people like it a lot more than I think they probably thought.
Brandt: As we talked about, people didn't like it at the beginning and then it caught on, it was almost this European soccer lingo, cool football team. But no, it seems like they're going to change it, and I think the buzz that the Washington Football Team got, albeit delayed, will happen again. People will be resistant to the new name, people will hate it. There'll be some memes and bad negative tweets, but they will embrace it at some point. It's this drumbeat, we keep using that word toward the new name. Now they've released the finalists and people are going to talk about that. It's a good marketing scheme. Listen, I was a diehard fan growing up and I thought nothing galvanized Washington D.C. like that team. It's gone through some tough times. But it just seems like they got the right thing going there. Jason Wright comes from a finance background and he's running the team now, Ron Rivera brings credibility right away and integrity to the team. They are on the upside and they are in a bad division, they are favored to win by many, that division, and they have the ultimate survivor of the NFL, Ryan Fitzpatrick as their quarterback, he's the ultimate survivor. I say that with fondness because every time he is left for dead in one situation he emerges as starting for another team. There we are, they are trying to capitalize on a lot of newness around the team and we'll see how long it lasts.
Hill: I appreciate your time, Andrew. Thanks.
Brandt: Always enjoying it, Chris.
Gross: Coming up, we'll share some stocks on our radar. You're listening to Motley Fool Money.
[...]
Welcome back to Motley Fool Money, Ron Gross here with Emily Flippen and Jason Moser. Fools, it's time for some stocks on our radar and I'll bring in our man, Dan Boyd, for a quick question. Jason Moser, you're up first. What do you got?
Moser: Well, a stock I just recently bought myself, the company is called C3.ai (NYSE: AI). The ticker is AI, and this is an enterprise AI artificial intelligence, application software company that enables the rapid deployment of enterprise scale AI applications. It's a unique business and they take a model-based approach. Developers can rapidly build these AI applications as opposed to having to write the complex and lengthy structured code. They have developed some very strong partnerships along the way, they just announced an alliance with Google Cloud [Alphabet]. You look at additional relationships with Amazon Web Services, Baker Hughes, Microsoft, Raytheon, just an interesting business in the technology. Then founder and CEO Thomas Siebel, also founded Siebel Systems, which was ultimately acquired by Oracle. He owns about 11% of the company today. Still a young company, it's still a new business to the market, but I'm encouraged by what they are doing, so I felt compelled to take a position.
Gross: Dan, I know you've got a question about C3.ai, come on.
Dan Boyd: Yes, I don't really know a whole lot about AI stocks, big surprise. But Jason, would you say that C3 is like a leader in the industry?
Moser: I think I need to develop an artificial intelligence application so that they can just answer that for you. But in all honesty, yes, I do. I think their novel approach in this model-based system is something that gives them a little bit of an edge.
Gross: Emily, you are up. What are you looking at?
Flippen: This is mine to lose because I have a fun one for you, Dan. I'm looking at Allbirds, and they aren't public yet. But once they go public, their plan is to list on the Nasdaq under the ticker BIRD, which is a great ticker to grab. But they are an environmentally sustainable, direct-to-consumer shoe and apparel business. They have a broad mission to help reverse climate change without us having to sacrifice our sense of fashion, they actually got started in 2014 from a kick-starter campaign, but they have scaled rapidly. By 2018, they had sold more than 1 million pairs of shoes and 50% of revenue comes from repeat customers. They have some pretty impressive lifetime value.
Gross: Dan?
Boyd: As many people know, I am an avid bird watcher, so when I heard that we were talking about Allbirds today, I was very excited. Then you tell me it's a shoe company, oh boy.
Gross: Is there a question in there?
Flippen: Here's what I'll say, Dan. This is an environmentally sustainable company. Their mission is priority, they're a Certified B Corp, a public benefit corporation. They want to help the birds, they want to help the environment. By buying Allbirds, you are helping the birds just one step removed.
Gross: Then do I dare ask if you've got a favorite for your watch list?
Boyd: You know what, Emily convinced me, Ron, I think I'm going to go with Allbirds this time. I love birds, I love the environment, so let's do it. Let's go.
Gross: Emily for the win. Jason Moser, Emily Flippen, thanks for being here, Fools.
Moser: Thank you.
Flippen: Thanks, Ron.
Gross: That's going to do it for this week's Motley Fool Money. Our engineer is Dan Boyd, our producer is Mac Greer, I'm Ron Gross. Thanks for listening. We'll see you next week.
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. Chris Hill owns shares of Alphabet (A shares), Amazon, Microsoft, and PayPal Holdings. Emily Flippen owns shares of Constellation Brands, PayPal Holdings, Peloton Interactive, and Shopify. Jason Moser owns shares of Alphabet (C shares), Amazon, Bill.com Holdings, Inc., C3.ai, Inc., PayPal Holdings, and Shopify. Ron Gross owns shares of Amazon and Microsoft. The Motley Fool owns shares of and recommends Affirm Holdings, Inc., Alphabet (A shares), Alphabet (C shares), Amazon, Bill.com Holdings, Inc., C3.ai, Inc., Constellation Brands, Coupa Software, Lululemon Athletica, Microsoft, PayPal Holdings, Peloton Interactive, and Shopify. The Motley Fool recommends Boston Beer, Caseys General Stores, Dave & Busters Entertainment, and RH and recommends the following options: long January 2022 $1,920 calls on Amazon, long January 2022 $75 calls on PayPal Holdings, long January 2023 $1,140 calls on Shopify, short January 2022 $1,940 calls on Amazon, and short January 2023 $1,160 calls on Shopify. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | But the big ones, the ones by ABM, Boston Beer, Constellation Brands, I expect those have long-term staying power. Not just because they're impacting all manufacturers across numerous industries, but because Lululemon is in the enviable position of being able to pass along most of these costs to customers, which means they've mitigated their supply delays with things like more air freight. It's not the magic bullet, so to speak but to my mind, it was paramount for this business to be able to have a shot at real growth and to just put these numbers in to context, for the nine months ended March 31, 2021, approximately 31% of Affirm's total revenue was driven by Peloton. | But the big ones, the ones by ABM, Boston Beer, Constellation Brands, I expect those have long-term staying power. In this episode of Motley Fool Money, Motley Fool analysts Emily Flippen and Jason Moser discuss those stories and talk about the latest from RH (NYSE: RH), Coupa Software (NASDAQ: COUP), Paypal Holdings (NASDAQ: PYPL), and Casey's General Stores (NASDAQ: CASY). The Motley Fool owns shares of and recommends Affirm Holdings, Inc., Alphabet (A shares), Alphabet (C shares), Amazon, Bill.com Holdings, Inc., C3.ai, Inc., Constellation Brands, Coupa Software, Lululemon Athletica, Microsoft, PayPal Holdings, Peloton Interactive, and Shopify. | But the big ones, the ones by ABM, Boston Beer, Constellation Brands, I expect those have long-term staying power. In this episode of Motley Fool Money, Motley Fool analysts Emily Flippen and Jason Moser discuss those stories and talk about the latest from RH (NYSE: RH), Coupa Software (NASDAQ: COUP), Paypal Holdings (NASDAQ: PYPL), and Casey's General Stores (NASDAQ: CASY). Now it's 17 games, I don't think it's going to be another 40 years before they look to expand to 18 games and I get that more games means more money, but do you think it's good business in the long run? | But the big ones, the ones by ABM, Boston Beer, Constellation Brands, I expect those have long-term staying power. In this episode of Motley Fool Money, Motley Fool analysts Emily Flippen and Jason Moser discuss those stories and talk about the latest from RH (NYSE: RH), Coupa Software (NASDAQ: COUP), Paypal Holdings (NASDAQ: PYPL), and Casey's General Stores (NASDAQ: CASY). [...] Welcome back to Motley Fool Money, Ron Gross here with Emily Flippen and Jason Moser. |
29309.0 | 2021-09-09 00:00:00 UTC | ABM Industries Inc (ABM) Q3 2021 Earnings Call Transcript | ABM | https://www.nasdaq.com/articles/abm-industries-inc-abm-q3-2021-earnings-call-transcript-2021-09-09 | nan | nan | Image source: The Motley Fool.
ABM Industries Inc (NYSE: ABM)
Q3 2021 Earnings Call
Sep 9, 2021, 8:30 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Greetings, and welcome to the ABM Industries Incorporated Third Quarter 2021 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce David Gold, Investor and Media Relations. Thank you, you may begin.
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David Gold -- Investor Relations
Thank you for joining us this morning. With us today are Scott Salmirs, our President and Chief Executive Officer; and Earl Ellis, our Executive Vice President and Chief Financial Officer. We issued our press release yesterday afternoon announcing our third quarter fiscal 2021 financial results. A copy of this release and an accompanying slide presentation can be found on our corporate website.
Before we begin, I would like to remind you that our call and presentation today contain predictions, estimates and other forward-looking statements. Our use of the words estimate, expect, and similar expressions are intended to identify these statements. Statements represent our current judgment of what the future holds. While we believe them to be reasonable, these statements are subject to risks and uncertainties that could cause our actual results to differ materially. These factors are described in a slide that accompanies our presentation, as well as our filings with the SEC. During the course of this call, certain non-GAAP financial information will be presented. A reconciliation of historical non-GAAP numbers to GAAP financial measures is available at the end of the presentation and on the company's website under the Investor tab.
I would now like to turn the call over to Scott.
Scott Salmirs -- President and Chief Executive Officer
Thanks, David. Good morning, and thank you all for joining us today to discuss our third quarter results. As detailed in yesterday's release, ABM generated strong third quarter results featuring double-digit growth in revenue, continued solid cash generation, and a 20% gain in adjusted earnings per share. Revenue growth was broad-based as each of our five business segments achieved year-over-year gains in revenue, aided by an improving business environment and the gradual reopening of the economy. Our team members once again executed well and continue to provide exceptional service to our clients.
Overall, demand for ABM's higher margin virus protection services remained elevated in the quarter, underscoring ongoing client concerns regarding cleaning and disinfection of their facilities. As anticipated, demand for virus protection eased slightly in the third quarter compared to the second quarter of fiscal 2021, but remain well above pre-pandemic levels. The emergence of the Delta variant and rising COVID-19 cases nationally have gains heightened interest in the need for disinfection prevention measures, particularly in high traffic areas. As we look forward to 2022 and beyond, we believe that virus protection services will remain a contributor to our overall revenue as disinfection becomes a standard service protocol and facility maintenance programs.
During the third quarter, we continued to benefit from efficient management of labor as office occupancy levels remain relatively low nationwide and began to trend downward slightly as the third quarter progressed due to the spread of the Delta variant. In this evolving environment, our flexible labor model enabled us to capitalize on staffing efficiencies and the associated benefit to our margins. In light of the current pause in the return to the office trend, we anticipate a more gradual ramp in office occupancy levels during 2022, providing an opportunity for a longer tailwind of rising from labor efficiencies. At the same time, we are proactively addressing current dynamics in the labor market, which include heightened competition for available talent.
As I noted in last quarter's conference call, ABM has developed a task force model that leverages our substantial internal resources and cross-functional expertise to identify and implement solutions rapidly and effectively. Earlier this year, we established a human resources task force with a specific focus on recruiting and retention, and this task force has been instrumental in helping us to manage our staffing needs and ensure our resources are allocated efficiently and cost effectively. As a reminder, roughly half of our revenue is generated from union labor accounts, which mitigates concerns around labor inflation and availability.
Revenue growth in the third quarter was led by performance of our Aviation segment, where revenues increased 51% compared to the prior year period and the segment operated profitably. Our strong performance in aviation reflected a seasonal improvement in air travel as well as our strategic shift toward securing high margin and more stable service contracts with airports and related facilities. While revenue in our Aviation segment remains below pre-pandemic levels, we expect to see continued growth, driven in part by new airport transportation and janitorial contracts.
Our Technical Solutions segment continued to perform strongly, generating nearly 23% revenue growth in the third quarter as our broad capabilities address key client needs for energy efficiency, productivity and mechanical performance throughout their facilities. Revenue growth benefited from improved access to client sites, enabling us to execute on a large number of projects Technical Solutions ended the third quarter with a record backlog level and the long-term outlook for this segment is particularly favorable given our position as a leading provider of electrical vehicle charging infrastructure. Although EV charging infrastructure services currently represent a limited portion of Technical Solutions revenue, electrical vehicle adoption continues to rise, aided by the current administration's target to make half of all vehicle sold in 2030 zero emissions vehicles. As a result, we see a long runway of growth for our e-mobility EV charging infrastructure business as we look out over the next several years.
Turning to Education segment. School districts have accelerated the return to in-person learning, as we estimate that 95% plus of K-12 and higher education institutions will resume in-school classes this fall. With the reopening of schools and educational facilities, Education segment revenue grew solidly from the prior year period, driven by increased demand for our services. We believe the heightened concerns amid the prevalence of the Delta variant may lead to incremental opportunities for disinfecting services in the fourth quarter and into 2022. But we do expect our labor savings from hybrid environment will wane quickly with a return to full-time in-person learning this fall.
Overall, our scale and market diversity and breadth of service keep us well positioned for growth in the fourth quarter and beyond. Given the strength of our year-to-date performance and our positive outlook for the fourth quarter, we are increasing our full year adjusted EPS guidance to $3.45 to $3.55, up from $3.30 to $3.50 previously.
On the acquisition front, a few weeks ago we announced a definitive agreement to acquire Able Services in a strategic transaction that we believe will create significant value for all of our stakeholders. We're excited to join with Able's talented team and we look forward to working together to better serve our clients with a broader array of services and solutions that address their evolving needs. The combination of ABM and Able expands our core engineering and janitorial capabilities in attractive geographies. This acquisition is expected to be accretive to adjusted EPS from day one, aided by an estimated $30 million to $40 million and cost saving synergies.
As a larger company with enhanced scale, we will be better positioned to provide our clients with service offerings that will not only enhance our growth and margins, but will add significant value for our clients. We also see the potential for revenue synergies over time as we deepen our client relationships and realize cross-selling opportunities. We are progressing on the close of this acquisition, which we expect will occur by the end of September. As a reminder, we have not included any contribution from Able in our updated guidance forecast.
In closing, the past nine months have been exciting, productive and successful for ABM. We have executed well on our strategic growth objectives, while generating strong financial results, and we are very much looking forward to the addition of Able Services to ABM. In the next few months, We plan to share with you our strategic plan for the next five years, which I am extremely excited about.
I'll now turn the call over to Earl for a financial review of the third quarter.
Earl Ellis -- Executive Vice President and Chief Financial Officer
Thanks, Scott, and good morning, everyone. Third quarter revenue was $1.54 billion, an increase of 10.7% from last year. This improvement was driven by revenue growth in each of our five business segments, reflecting an improving business environment and continued demand for our virus protection services.
On a GAAP basis, the loss from continuing operations was $13.7 million or $0.20 per diluted share compared to $56 million or $0.83 per diluted share in last year's third quarter. The GAAP loss from continuing operations in this year's third quarter is attributable to a reserve of $112.9 million, equivalent to $1.24 per diluted share. The fully resolved previously announced outstanding litigation, you will find additional information related to the legal settlement in our Form 10-Q, which will be filed later today.
Excluding the impact of reserve taken in the third quarter as well as other one-time factors including a favorable prior year self-insurance adjustment of $26.1 million, our adjusted income from continuing operations was $61.3 million or $0.90 per diluted share in the third quarter of fiscal 2021, compared to $50.1 million or $0.75 per diluted share in the third quarter of last year. The increase in adjusted income from continuing operations was primarily the result of strong operational performance, including growth in our higher margin services. Additionally, our results benefited from several other factors, including efficient labor management, one less workday compared to the third quarter of fiscal 2020, and lower bad debt expense.
Corporate expense for the third quarter increased by $27.5 million year-over-year. The majority of this increase reflects a more normalized expense level in this year's third quarter as furloughs and other cost saving measures taken at the beginning of the pandemic reduced corporate expenses in the same period a year ago. The increase in corporate expense this quarter also reflects planned investments of approximately $9 million, as we continue to execute on our technology transformation initiative. On a year-to-date basis, we have invested $29 million in information technology and other strategic initiatives relative to our previously disclosed target of $40 million for the full fiscal 2021 year.
Now turning to our segment results. Revenue in our largest segment, Business & Industry, grew 6.7% year-over-year to $807.7 million, benefiting from increased office occupancy in the quarter as well as continued elevated demand for virus protection services. In addition, we saw improved demand for sports venues, as spectator attendance levels increased significantly from the prior year period. Operating profit in this segment grew 18.2% year-over-year to $84.7 million, reflecting efficient labor management, reduced bad debt expense and ongoing client demand for higher margin virus protection services.
Our Technology & Manufacturing segment generated revenue growth of 1.2% year-over-year to $246.1 million, and operating profit margin improved to 10.4%, up from 10.1% last year. Since most of our clients in the T&M segment are considered essential service provider, this segment has been least impacted by COVID-19 disruption. As a result, segment revenue grew modestly on a year-over-year basis. However, the segment operating profit margin increased 30 basis points from the prior year period, reflecting lower bad debt expense.
Education revenue grew 10.5% year-over-year to $208.4 million, driven by the reopening of schools and other educational institution amid a return to in-person learning. Education operating profit totaled $17.7 million, down 3.3% from the same period last year. Although the return to school trend increased demand for virus protection services, the resumption of more normalized staffing levels reduced overall margins compared to the prior year, which benefited from minimal staffing requirement.
Aviation revenue increased 51% in the third quarter to $175.7 million, marking the first period of year-over-year revenue growth in the Aviation segment since the third quarter of fiscal 2019. Revenue growth was fueled by a rebound in U.S. passenger levels amid significantly busier summer travel season compared to the same period last year, as well as our increased focus on securing more business with airport and related facilities. Aviation operating profit improved to $10.3 million compared to an operating loss of $8.2 million last year. Aviation segment margins continued to improve on a sequential basis, rising to 5.9% in the third quarter from 3.9% in the second quarter of fiscal 2021. The improvement in operating margin is attributable to a favorable shift in business mix as we emphasize higher margin airport facility contracts and from stronger client demand for virus protection services compared to the prior year period.
Technical Solutions revenue increased 22.7% year-over-year to $146.1 million, highlighting continued strong market demand for our energy efficiency solutions as well as improved access to client sites. Segment operating margin was 9.9% in the third quarter compared to 11.1% in last year's third quarter, reflecting a higher personnel costs compared to last year's third quarter, which benefited from pandemic-related cost saving actions.
I'll now discuss our cash and liquidity. We ended the third quarter with $505.4 million in cash and cash equivalents compared to $394.2 million at the end of fiscal 2020, with total debt of $811.6 million as of July 31, 2021. Our total debt to pro forma adjusted EBITDA, including standby letters of credit was 1.4 times at the end of the third quarter of fiscal 2021. In June, we announced an expansion of our credit agreement to $1.95 billion. The benefits of this revised and expanded credit facility include enhanced financial flexibility as well as increased liquidity to fund strategic growth initiatives. Additionally, the revised agreement has more favorable credit term on both the revolving credit facility and the term loan.
As you know, we recently announced the pending acquisition of Able Services for $830 million, which we plan to pay using a mix of cash on hand and borrowings from our credit facility. Following the close, we expect to have very manageable bank leverage ratio of approximately 3 times. Supported by strong cash flow of the combined company, we intend to reduce this leverage ratio in a timely manner.
Third quarter operating cash flow from continuing operations was $87.6 million compared to $130.9 million in the third quarter of last year. The decrease in cash flow from continuing operations during the third quarter was primarily due to a deferral in payroll taxes last year under the CARES Act. For the nine-month period ending July 31, 2021, operating cash flow from continuing operations totaled $258.8 million, unchanged from the same period last year. Free cash flow from continuing operations was $79.2 million in the third quarter of fiscal 2021, down from $121.1 million in the third quarter of fiscal 2020. The decrease in free cash flow reflected the CARES Act payroll tax deferral I mentioned.
During the third quarter, we were pleased to pay our 221st consecutive quarterly dividend of $0.19 per common share, returning an additional $12.8 million to our shareholders. Our Board also declared our 222nd consecutive quarterly dividend, which will be payable November 1, 2021 to shareholders of record on October 7, 2021.
Now, I'll discuss our outlook. As Scott mentioned, our increased guidance for full year fiscal 2021 adjusted income from continuing operations is now a range of $3.45 to $3.55 per diluted share, compared to $3.30 to $3.50 per diluted share previously. The increase in our adjusted earnings forecast is due to our strong financial performance over the first nine months of fiscal 2021, as well as our favorable outlook for the fourth quarter of the year. Please note that this guidance excludes any impact from our pending acquisition of Able Services.
At this time, we are not providing guidance for full year 2021 GAAP income from continuing operations since we are unable to provide an accurate estimate and timing of the items impacting comparability relating to the Able Services acquisition, such as acquisition-related contingency advisory fees and integration costs. We continue to expect a 30% tax rate for fiscal 2021 excluding discrete items such as the Work Opportunity Tax Credits and the tax impact of stock-based compensation awards.
Operator, we are now ready for questions.
Questions and Answers:
Operator
Thank you. [Operator Instructions] Our first questions come from the line of Tim Mulrooney with William Blair. Please proceed with your questions.
Tim Mulrooney -- William Blair -- Analyst
Good morning, Scott. Good morning, Earl.
Scott Salmirs -- President and Chief Executive Officer
Good morning.
Earl Ellis -- Executive Vice President and Chief Financial Officer
Good morning.
Tim Mulrooney -- William Blair -- Analyst
A couple of margin related questions for me. So EBITDA margins are still very strong given the strong demand for higher margin work and some labor savings I think. So last year the margin expansion split was about 50:50 between those two factors. I'm curious how that split broke down? How that looked for the third quarter? And because the economy continues to reopen, how you're thinking about those two factors based on the implied guidance that -- which you gave for the fourth quarter?
Earl Ellis -- Executive Vice President and Chief Financial Officer
Well, thanks for the question, Tim, it's Earl. I'll start by saying that this year in Q3 we're now lapping a full quarter of the pandemic that started last year, so it's now lapping year-over-year. Now having said that, out of the 50 basis points that we actually lost year-over-year, our gross profit margin was actually up about 40 basis points and a lot of that is actually driven by the continued labor efficiencies that we've gained as well as positive business mix, really driven by our Aviation business, and then we've actually been able to maintain the level of disinfection margin that we actually had last year. So again, if you think about it lapping year-over-year, we've maintained the margins from disinfection and we're actually still maintaining the labor margin.
Tim Mulrooney -- William Blair -- Analyst
Okay, yeah, that's...
Earl Ellis -- Executive Vice President and Chief Financial Officer
And just -- and your second question, as far as how that translates to the future. Again, as we look at the return to office, we've now seen a return to-in-class learning. We anticipate that will actually start to lose some of the labor efficiencies. However, in the long-term we still plan on maintaining a fair portion of that.
Tim Mulrooney -- William Blair -- Analyst
Okay, thanks. So I think maybe a good way to continue this discussion would be to actually dig into one of the segments, so you're Aviation business not only did it recover in margin, but it actually -- the EBIT margin expanded beyond what the business had done historically. How much of that increase do you think is structural due to changes that you you guys have made within the segment, whether it's to focus on different areas of the business or whether it's becoming more efficient in your operation as you move to the pandemic, has the EBIT margin structurally improved in aviation or is it just kind of elevated right now from all the higher margin cleaning work and travel increasing, that kind of thing?
Scott Salmirs -- President and Chief Executive Officer
Yeah, hey Tim, this is Scott. Yeah, I do think there is a structural improvement here. First, I think the good performance is volume related. There is certainly more airline traffic, we're at about 74% of where we were pre-COVID and that may ease off a little bit after the summer travel, but certainly much more heightened levels, which we were excited about. But there's also been a shift in us moving from airline to airport, it used to be about 50:50, now we're more like 60:40 airports to airlines, and we kind of like that shift mix. We think there's going to be a lot of investment in airports. We also like the parking segment in that area. So I think there will be a structural change and structural stability more importantly when we gravitate more toward airports. So, but I think when you look at the results today, it's a combination of that shift in mix, but also volume related.
Tim Mulrooney -- William Blair -- Analyst
Great, very helpful. Thanks for taking my questions.
Scott Salmirs -- President and Chief Executive Officer
You bet, Tim.
Operator
Our next questions come from the line of Sean Eastman with KeyBanc Capital Markets. Please proceed with your question.
Sean Eastman -- Keybanc Capital Markets -- Analyst
Hi, guys. Thanks for taking my questions. I just wanted to continue on the margin discussion. I mean, earlier you did walk through the moving parts, that was really helpful. But it's just interesting to see B&I revenue essentially back at fiscal '19 run rates, yet margins holding in the double-digit territory. I mean, I was just wondering where these margins are going to settle out. I mean, just any more color you can provide, maybe within the footprint. Clearly some geographies have seen occupancy trends improve, maybe others not so much. But maybe just based on what you're seeing in areas where occupancy has improved, just any kind of thoughts on where this sustainable B&I margin run rate settles out would be really helpful as we think about the go forward?
Scott Salmirs -- President and Chief Executive Officer
Sure, Sean. Look, I think this is still evolving, right. I would tell you that if you look at geographically speaking, if you look at kind of the two coasts you're talking about 20% office occupancy in B&I, give or take. And then kind of that middle of the country its 40% to 50%, but it hasn't -- it hasn't ramped up as fast as we all thought because of the Delta variant. So I think it's still hard for us to pin down a formal long-term margin. We're looking forward to giving you full year guidance in the next three months and then that will give you the insight for the next year. But look, we're going to say what we've continue to say throughout, which is the two for elevated margins are in disinfecting and labor arbitrage, and we believe we will permanently keep portions of that as we restaff these buildings, we believe we're going to be able to do it more efficiently and we'll capture some savings. Again, still too early to figure out how much.
And then the disinfecting, we see like -- maybe two quarters ago there was or maybe even a quarter ago there was no Delta variant, right. So I think this is going to continue to evolve and we've all just said it even anecdotally, it's just -- I don't think facility managers or landlords or principles of schools, I don't think anyone thinks it's responsible to discontinue disinfection services, especially in high-touch areas. So that's going to continue too. So we believe we will continue to be elevated, but give us till next quarter when we do full year guidance to kind of give you that year outlook.
Sean Eastman -- Keybanc Capital Markets -- Analyst
Okay, fair enough, thanks for that. And maybe shifting over to ATS. Could you just speak to kind of the velocity in new business wins there? I mean clearly some of this energy efficiency, sort of ESG related work is a big play with Able. So just some color on client decision making there, new wins, backlog trends as we think about the growth potential in that business line?
Scott Salmirs -- President and Chief Executive Officer
Yeah, so look it's -- it's thumbs up across the board when we look at new sales, we're at record new sales. Our backlog, I think the number is 250 million plus in backlog, which is a record for us too. And our churn rate is going up. So not only is our backlog higher but we're churning out the work faster because we have more access to sites. We love -- I made some opening comments about EV charging, it's amazing. We've installed nearly half of the EV charging stations in the country to date. Like, I don't think people realize that, right. So kind of the bandwidth we have there as the world moves to e-mobility is going to be fabulous for us. So we continue to be excited about that segment. And then you take -- you take Able and you take all the engineering assignments and the ability to cross sell into that, we think there is just going to be phenomenal ability there. We think there's going to be phenomenal ability to create a IFs -- integrated facilities platform.
And as we talked about Able with you all, we didn't put any revenue synergies, so, that's all on the upside that's not factored in. So couldn't be more enthusiastic about where ATS is going from our core business to our ability to cross-sell to where society is heading. We think it's just again thumps up across the board.
Sean Eastman -- Keybanc Capital Markets -- Analyst
Okay, terrific. Thanks, Scott. I'll turn it over.
Scott Salmirs -- President and Chief Executive Officer
Thanks, Sean.
Operator
Thank you. Our next questions come from the line of Andy Wittmann with Baird. Please proceed with your questions.
Andrew Wittmann -- Robert W. Baird & Co., Inc. -- Analyst
Yeah, great. Thanks for taking my questions, guys. Maybe, Scott, I wanted to broaden out that last question that was focused on sales for the Technical Solutions segment and just talk about base contractual revenue and basically if you could talk a little bit about net new business in the quarter, over the last year or so, certainly early in the pandemic it was just all about kind of hunkering down and your retention was up because nobody wanted to change. Time has progressed, things are reopening. I wanted to get a sense from you about the level of customer discussions for changing providers to you or even from you, I suppose, on the contractual side of your business? If you could talk about that, please.
Scott Salmirs -- President and Chief Executive Officer
Yeah, I think you said ATS, did you mean more B&I?
Andrew Wittmann -- Robert W. Baird & Co., Inc. -- Analyst
Yeah, the prior question was focused on Technical Solutions. My questions focused on all the other annuity businesses for B&I or T&M, that kind of stuff?
Scott Salmirs -- President and Chief Executive Officer
Got you, got you. Yeah, so look, there has not been a lot of activity yet. I think my remarks would stay consistent with the last couple of quarters, which is facility managers and landlords are still trying to get level set for what the new reality looks like and now, Andy, with -- and you know this policy as well as I do with companies pushing back their opening dates for getting people back, you're still in this mode where you don't want to kind of commit to like bidding out your work and figuring out what the new normal looks like because you just don't know what the occupancy patterns are going to look like. And so we haven't -- we haven't seen a lot of activity on that side and even with schools, right. This is -- this is the first time that -- we would say like probably 95% of the school is K through 12 and higher Ed or back in-person. So they're just for us level setting on that right now and hoping to get through the semester with in-person. So I think there hasn't been that activity. So it's still -- it's still a little early for that.
Andrew Wittmann -- Robert W. Baird & Co., Inc. -- Analyst
Okay, good. I just wanted to check on that. And then, I guess there is -- fundamentally in your comments there were two things that kind of stuck out is slight changes in terms of the demand for your services. One was that you actually saw occupancy trend down, obviously Delta is having an effect, like if we had to point to something that would be, so occupancy kind of trending down in the quarter and then the other thing you kind of mentioned was slightly softer deep cleaning demand, I don't know. But just given that there was a slight change in both of those, so maybe you can elaborate on those.
Scott Salmirs -- President and Chief Executive Officer
Yeah, I think -- I think those, that's a good call out, Andy. And I think those were all probably temporary. So occupancy trending down was really when Delta hit, and it goes to what I said a couple of minutes ago, which is people -- if you remember, right, it was going to be like oh, first that people were talking about July 4th and they were talking about Labor Day. Now there's a lot of people saying November 1st and January. So it's -- the tail is just getting longer and longer on occupancy, which as you know and goes [Phonetic] to our benefit, right, because we keep that labor arbitrage, so. But that's a good tailwind for us.
And then the softening on kind of disinfecting. So I would say two things. One, clearly expected. I think we've had that narrative at least a year if not longer that it's never going to stay at these levels, and if you think about it. So if you think about work orders kind of pre-pandemic, we were in that 5% range, right. That was our tag work order revenue, and we got as high as like 10 plus percent. So now we're at like, I think it was 9.3% for the quarter. So you'll see that start kind of tailing down, but we've always projected that. And I think -- also remember this was, we had June and July in this quarter which was summer months, so even less occupancy and probably a more extreme ramping down of the disinfecting work. So I think some of it's temporary. But again, I think the stuff really -- the elongation of occupancy is good for us.
Andrew Wittmann -- Robert W. Baird & Co., Inc. -- Analyst
Yeah, that's a very helpful answer. My last question, Earl, I guess is for you. And I just wanted to understand and interpret the guidance a little bit. I look at the quarter, you beat by, well I think $0.11 on consensus, that the midpoint goes up by by 10. It feels like the guidance change is mostly due to the third quarter's outperformance rather than some change on your view for the fourth quarter specifically. Is that the right way of thinking about the guidance range because its really more about year-to-date performance than a change in your outlook for the fourth quarter?
Earl Ellis -- Executive Vice President and Chief Financial Officer
Yeah, I think that's correct, in that. When we do the guidance, we look at obviously what's happened year-to-date and how we think that's going to continue to trend into Q4. And as such, based on our performance in Q3, we felt comfortable raising both the top and as well as the bottom end of the guidance.
Andrew Wittmann -- Robert W. Baird & Co., Inc. -- Analyst
Okay, makes sense. Thanks, guys. Have a great day.
Scott Salmirs -- President and Chief Executive Officer
Thanks, Andy.
Earl Ellis -- Executive Vice President and Chief Financial Officer
Thank you.
Operator
Thank you. Our next questions come from the line of David Silver with CL King. Please proceed with your questions.
David Silver -- CL King & Associates, Inc. -- Analyst
Okay, thank you very much. I'll just apologize in advance, I've had to step away and a couple of points here. My first question, Scott, would be kind of to try to get your perspective on something, a couple of things you talked about maybe a couple of quarters ago and it would be related to the demand for office space as you see it, and then secondarily the appetite for property managers to embed or include elements of your enhanced disinfection routines in the basic service contracts. So I think it was a couple of quarters ago. But you had mentioned that there was an active discussion between yourselves and the property managers and I think you characterized it is "like too early" for many of the property managers to really decisively kind of reach conclusions about; A, the demand for office space and B, what -- what types of facility services would be used in the post-pandemic environment.
Scott Salmirs -- President and Chief Executive Officer
Yeah, that's right.
David Silver -- CL King & Associates, Inc. -- Analyst
I'm just wondering if you could just update us on your thinking in those two areas? Thank you.
Scott Salmirs -- President and Chief Executive Officer
Yeah, sure, David. So look, in terms of demand for office space and how that's going to work out, if you remember, it was probably like a year ago everyone was predicting this massive flood of subleasing and people rationalizing their space, and we said we weren't seeing it. We said it was too early. And I think we also said that we believe based on our kind of our knowledge of the space that people are going to wait till tenants got back into the space, so how they were using it before they were going to make these longer-term decisions about the demand for office space. So I think that's still in play. That's still hasn't happened yet because as I said a couple of minutes ago, we haven't seen that return to office yet. So nothing new to report on the demand side. And then in terms of EnhancedClean and embedding in the contracts, I think it's the same thing where people haven't gotten back yet, they haven't figured out how to rationalize their cleaning specs, how it's going to work and that's something that we suspect is going to be more of a 2022 event frankly than a '21 event.
David Silver -- CL King & Associates, Inc. -- Analyst
Okay, great. I'd like to follow-up with maybe a question related to Able Services, and in particular, their Technical Solutions capabilities. So, and one -- this is a question about how that group will look following the completion of the acquisition. So your existing Technical Solutions unit certainly has a number of strengths, energy efficiency, and I think a very strong positioning in the Education segment. And I'm just wondering if you could maybe compare and contrast what the Able Services Technical Solutions unit brings either in terms of spread [Phonetic] the capabilities, scale in certain areas? In other words, you've talked about cross selling, but is the cross selling opportunities more of the traditional opportunities that you've been working on with your legacy Technical Solutions unit? Or how will it broaden and extend your ability to cross sell. Thank you.
Scott Salmirs -- President and Chief Executive Officer
Yeah. So, so Able services doesn't have a Technical Solutions unit the way we have, which is -- remember our Technical Solutions is mostly project work, right. So we're -- we're retrofitting electrical mechanical systems, their engineering capabilities or on the stationary engineering, which are the engineers that are located on site in the building operating the equipment and we have a segment as large as theirs on that. So if you look at that, the opportunity is for our Technical Solutions Group to cross sell into those engineering assignments and for us to bring a broader set of capabilities because they also have somewhere in the neighborhood of $400 million in janitorial assignments that we'll be able to cross sell as well. So we look as our Technical Solutions as a catalyst for that. But again, I'll repeat what I said earlier, which is we have not factored that in to any of the economics, that's all upside for us, all those revenue synergies which should be well received by someone like you.
David Silver -- CL King & Associates, Inc. -- Analyst
Okay, great. Thank you very much.
Scott Salmirs -- President and Chief Executive Officer
Thanks, David.
Operator
Thank you. Our next questions come from the line of Marc Riddick with Sidoti. Please proceed with your questions.
Marc Riddick -- Sidoti & Co. -- Analyst
Hey, good morning.
Scott Salmirs -- President and Chief Executive Officer
Good morning.
Marc Riddick -- Sidoti & Co. -- Analyst
So I was wondering if we could start with the Education segment for a moment. I was wondering if you could spend a little time delving into maybe what you've seen so far. And particularly I was somewhat curious as to the ramp-up going into school reopenings. Have you seen any meaningful difference in ordering or preparation for the younger grades as opposed to college-age, particularly those that are too young to be vaccinated? I was wondering if there is any difference in what clients were asking you to do or is it somewhat similar across the board?
Scott Salmirs -- President and Chief Executive Officer
Generally speaking, it is somewhat across the board. I think for -- if you are a President of a college or if you're principal of the school, you're just trying to protect the kids as best you can, right. And so we don't see a real distinction between maybe doing more disinfection in K through 12 than higher Ed, it's similar across the board.
Marc Riddick -- Sidoti & Co. -- Analyst
Okay. And then I was thinking about the sort of -- some of the commentary that you had in the press release around some of the return to normalcy. You've talked about travel. So what we've -- aviation to the side for a moment, that certainly was clear. You did talk a little bit about things like sporting events and the like. And then I was wondering if you could talk a little bit about those kinds of other leisure activities that are not necessarily travel because it does seem as though we're seeing full stadiums again with football and some level of concert activity, though that's been a little bit spotty, so I think you touch a little bit about what you're seeing there?
Scott Salmirs -- President and Chief Executive Officer
Sure, and just as a reminder, sports and entertainment, we love that segment. It's just -- it's great to be in, but it's a very small piece of our revenue, but it's been encouraging, right, because it's been almost like a binary event, whereas last quarter it was like no activity and now we're having activity again where people are getting back to events and stadiums are becoming full or hybrid full, if you will. And so it's a path to normalcy, which we really like and that's been one of our fastest growing segments, albeit it's a smaller one, but it's a fast-growing one. So we're just -- we're just pleased that it's getting back to normal.
Marc Riddick -- Sidoti & Co. -- Analyst
Okay, and then I wanted to also switch gears a bit and go into the sort of where you are on the branding efforts and the exercise there. I mean, it's been a little bit of time now since you started with the commercials, but also sort of just sort of putting the ABM brand upfront. I was wondering if you sort of give some thoughts as to maybe what you're seeing there and then what type of commitment we should be thinking about as far as sort of keeping the ABM brand in front of people and making that part of the, I guess the structure of your go-to-market strategy?
Scott Salmirs -- President and Chief Executive Officer
Yeah, so look, it's been important to us through 2021 and we renewed our engagements with folks like CNBC, you've probably seeing our ads continue to run and we have those engagements throughout the rest of the fiscal year. It remains to be seen what we're going to do in 2022. But we will certainly address that with you when we do our guidance, but we've enjoyed the up-branding and it's just going to be a cost benefit analysis that we continue to iterate on, but definitely more color on that when we give guidance.
Marc Riddick -- Sidoti & Co. -- Analyst
Okay, great. And then one last thing for me. I was wondering going switching back to the hiring and what you're seeing there. Is there any difference as to any regional differences as to labor availability, hiring and the like? And I was sort of thinking about the -- what we've seen in certain areas in certain states that ended the unemployment support earlier in the summer. I wasn't sure if there was much in the way of difference that you were seeing there, but just wondered if you had any commentary there as to how that -- maybe what you're seeing there and what benefits you might be getting? Thanks.
Scott Salmirs -- President and Chief Executive Officer
Yeah, I think the way we think about it, Marc, is really more union territories versus non-union. So in our kind of union markets we see less pressure, right, because wages a higher, there is full benefits and that mitigates a lot of the concern we have around labor. It's more on the non-union markets which tends to be at the bottom half of the country. And we're seeing some pressure there. But that's why we put our task force in place, but it's also been muted because there hasn't been the return to work and we're only beginning with return to school. So we're feeling pretty good about it and we'll see what happens as the benefits roll off now on unemployment and we'll see what happens with the the child care tax credit next year because it was elevated this year. It used to be about $2,000 per child and now it's between $3,600. So we'll see if that gets renewed and that's not taxable. So it's another incentive to not get into the workforce. So I think more to come on that story.
Marc Riddick -- Sidoti & Co. -- Analyst
Great. Much appreciated. Thank you.
Scott Salmirs -- President and Chief Executive Officer
Thank you.
Operator
Thank you. There are no further questions at this time. I'd like to hand the call back over to management for any closing comments.
Scott Salmirs -- President and Chief Executive Officer
Yeah, just want to tell everyone to make sure you continue to stay safe and healthy and do all the proper guidelines, that's our moment of safety for this quarter, and we look forward to giving you an update next quarter when we'll have much more to say about the Able acquisition and then our full year guidance. So, thanks everyone for your support and look forward to chatting soon. Thanks, everyone.
Operator
[Operator Closing Remarks]
Duration: 47 minutes
Call participants:
David Gold -- Investor Relations
Scott Salmirs -- President and Chief Executive Officer
Earl Ellis -- Executive Vice President and Chief Financial Officer
Tim Mulrooney -- William Blair -- Analyst
Sean Eastman -- Keybanc Capital Markets -- Analyst
Andrew Wittmann -- Robert W. Baird & Co., Inc. -- Analyst
David Silver -- CL King & Associates, Inc. -- Analyst
Marc Riddick -- Sidoti & Co. -- Analyst
More ABM analysis
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | ABM Industries Inc (NYSE: ABM) Q3 2021 Earnings Call Sep 9, 2021, 8:30 a.m. ET Contents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks: Operator Greetings, and welcome to the ABM Industries Incorporated Third Quarter 2021 Earnings Call. 10 stocks we like better than ABM Industries When our award-winning analyst team has a stock tip, it can pay to listen. | Operator [Operator Closing Remarks] Duration: 47 minutes Call participants: David Gold -- Investor Relations Scott Salmirs -- President and Chief Executive Officer Earl Ellis -- Executive Vice President and Chief Financial Officer Tim Mulrooney -- William Blair -- Analyst Sean Eastman -- Keybanc Capital Markets -- Analyst Andrew Wittmann -- Robert W. Baird & Co., Inc. -- Analyst David Silver -- CL King & Associates, Inc. -- Analyst Marc Riddick -- Sidoti & Co. -- Analyst More ABM analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. ABM Industries Inc (NYSE: ABM) Q3 2021 Earnings Call Sep 9, 2021, 8:30 a.m. ET Contents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks: Operator Greetings, and welcome to the ABM Industries Incorporated Third Quarter 2021 Earnings Call. | Operator [Operator Closing Remarks] Duration: 47 minutes Call participants: David Gold -- Investor Relations Scott Salmirs -- President and Chief Executive Officer Earl Ellis -- Executive Vice President and Chief Financial Officer Tim Mulrooney -- William Blair -- Analyst Sean Eastman -- Keybanc Capital Markets -- Analyst Andrew Wittmann -- Robert W. Baird & Co., Inc. -- Analyst David Silver -- CL King & Associates, Inc. -- Analyst Marc Riddick -- Sidoti & Co. -- Analyst More ABM analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. ABM Industries Inc (NYSE: ABM) Q3 2021 Earnings Call Sep 9, 2021, 8:30 a.m. ET Contents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks: Operator Greetings, and welcome to the ABM Industries Incorporated Third Quarter 2021 Earnings Call. | Operator [Operator Closing Remarks] Duration: 47 minutes Call participants: David Gold -- Investor Relations Scott Salmirs -- President and Chief Executive Officer Earl Ellis -- Executive Vice President and Chief Financial Officer Tim Mulrooney -- William Blair -- Analyst Sean Eastman -- Keybanc Capital Markets -- Analyst Andrew Wittmann -- Robert W. Baird & Co., Inc. -- Analyst David Silver -- CL King & Associates, Inc. -- Analyst Marc Riddick -- Sidoti & Co. -- Analyst More ABM analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. ABM Industries Inc (NYSE: ABM) Q3 2021 Earnings Call Sep 9, 2021, 8:30 a.m. ET Contents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks: Operator Greetings, and welcome to the ABM Industries Incorporated Third Quarter 2021 Earnings Call. |
29310.0 | 2021-09-05 00:00:00 UTC | Do Fundamentals Have Any Role To Play In Driving ABM Industries Incorporated's (NYSE:ABM) Stock Up Recently? | ABM | https://www.nasdaq.com/articles/do-fundamentals-have-any-role-to-play-in-driving-abm-industries-incorporateds-nyse%3Aabm | nan | nan | ABM Industries' (NYSE:ABM) stock is up by 4.6% over the past month. As most would know, long-term fundamentals have a strong correlation with market price movements, so we decided to look at the company's key financial indicators today to determine if they have any role to play in the recent price movement. In this article, we decided to focus on ABM Industries' ROE.
Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. In simpler terms, it measures the profitability of a company in relation to shareholder's equity.
How Is ROE Calculated?
The formula for return on equity is:
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
So, based on the above formula, the ROE for ABM Industries is:
13% = US$215m ÷ US$1.6b (Based on the trailing twelve months to April 2021).
The 'return' is the profit over the last twelve months. One way to conceptualize this is that for each $1 of shareholders' capital it has, the company made $0.13 in profit.
Why Is ROE Important For Earnings Growth?
Thus far, we have learned that ROE measures how efficiently a company is generating its profits. We now need to evaluate how much profit the company reinvests or "retains" for future growth which then gives us an idea about the growth potential of the company. Generally speaking, other things being equal, firms with a high return on equity and profit retention, have a higher growth rate than firms that don’t share these attributes.
ABM Industries' Earnings Growth And 13% ROE
To begin with, ABM Industries seems to have a respectable ROE. On comparing with the average industry ROE of 11% the company's ROE looks pretty remarkable. However, we are curious as to how the high returns still resulted in flat growth for ABM Industries in the past five years. We reckon that there could be some other factors at play here that's limiting the company's growth. These include low earnings retention or poor allocation of capital.
Next, on comparing with the industry net income growth, we found that ABM Industries' reported growth was lower than the industry growth of 10% in the same period, which is not something we like to see.
NYSE:ABM Past Earnings Growth September 5th 2021
Earnings growth is a huge factor in stock valuation. It’s important for an investor to know whether the market has priced in the company's expected earnings growth (or decline). This then helps them determine if the stock is placed for a bright or bleak future. One good indicator of expected earnings growth is the P/E ratio which determines the price the market is willing to pay for a stock based on its earnings prospects. So, you may want to check if ABM Industries is trading on a high P/E or a low P/E, relative to its industry.
Is ABM Industries Efficiently Re-investing Its Profits?
With a high three-year median payout ratio of 52% (implying that the company keeps only 48% of its income) of its business to reinvest into its business), most of ABM Industries' profits are being paid to shareholders, which explains the absence of growth in earnings.
In addition, ABM Industries has been paying dividends over a period of at least ten years suggesting that keeping up dividend payments is way more important to the management even if it comes at the cost of business growth.
Summary
In total, it does look like ABM Industries has some positive aspects to its business. Yet, the low earnings growth is a bit concerning, especially given that the company has a high rate of return. Investors could have benefitted from the high ROE, had the company been reinvesting more of its earnings. As discussed earlier, the company is retaining a small portion of its profits. Having said that, looking at the current analyst estimates, we found that the company's earnings are expected to gain momentum. To know more about the company's future earnings growth forecasts take a look at this free report on analyst forecasts for the company to find out more.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | However, we are curious as to how the high returns still resulted in flat growth for ABM Industries in the past five years. ABM Industries' (NYSE:ABM) stock is up by 4.6% over the past month. In this article, we decided to focus on ABM Industries' ROE. | The formula for return on equity is: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for ABM Industries is: 13% = US$215m ÷ US$1.6b (Based on the trailing twelve months to April 2021). Next, on comparing with the industry net income growth, we found that ABM Industries' reported growth was lower than the industry growth of 10% in the same period, which is not something we like to see. NYSE:ABM Past Earnings Growth September 5th 2021 Earnings growth is a huge factor in stock valuation. | ABM Industries' Earnings Growth And 13% ROE To begin with, ABM Industries seems to have a respectable ROE. Next, on comparing with the industry net income growth, we found that ABM Industries' reported growth was lower than the industry growth of 10% in the same period, which is not something we like to see. With a high three-year median payout ratio of 52% (implying that the company keeps only 48% of its income) of its business to reinvest into its business), most of ABM Industries' profits are being paid to shareholders, which explains the absence of growth in earnings. | In this article, we decided to focus on ABM Industries' ROE. ABM Industries' Earnings Growth And 13% ROE To begin with, ABM Industries seems to have a respectable ROE. Next, on comparing with the industry net income growth, we found that ABM Industries' reported growth was lower than the industry growth of 10% in the same period, which is not something we like to see. |
29311.0 | 2021-08-30 00:00:00 UTC | 5 Dividend Aristocrats Where Analysts See Capital Gains | ABM | https://www.nasdaq.com/articles/5-dividend-aristocrats-where-analysts-see-capital-gains-2021-08-30 | nan | nan | To become a "Dividend Aristocrat," a dividend paying company must accomplish an incredible feat: consistently increase shareholder dividends every year for at least 20 consecutive years. Companies with this kind of track record tend to attract a lot of investor attention — and furthermore, "tracking" funds that follow the Dividend Aristocrats Index must own them. With all of this demand for shares, dividend growth stocks can sometimes become "fully priced," where there isn't much upside to analyst targets.
But we here at ETF Channel have looked through the underlying holdings of the SPDR S&P Dividend ETF (which tracks the S&P High Yield Dividend Aristocrats Index), and found these five dividend growth stocks that actually still have fairly substantial upside to the average analyst target price 12 months out. Which means, if the analysts are correct, these are five dividend growth stocks that could produce capital gains in addition to their growing dividend payments.
In the first table below, we present the five stocks. The recent share price, average analyst 12-month target price, and percentage upside to reach the analyst target are presented.
STOCK RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET
Telephone & Data Systems Inc (Symbol: TDS) $19.98 $31.50 57.66%
ABM Industries, Inc. (Symbol: ABM) $49.74 $57.67 15.93%
SEI Investments Co (Symbol: SEIC) $63.15 $72.67 15.07%
International Business Machines Corp (Symbol: IBM) $139.41 $153.71 10.26%
Black Hills Corporation (Symbol: BKH) $70.71 $76.80 8.61%
The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. To ballpark that total return potential, we have added the current yield to the analyst target price upside, in order to arrive at the 12-month total return potential:
STOCK DIVIDEND YIELD % UPSIDE TO ANALYST TARGET IMPLIED TOTAL RETURN POTENTIAL
Telephone & Data Systems Inc (Symbol: TDS) 3.50% 57.66% 61.16%
ABM Industries, Inc. (Symbol: ABM) 1.53% 15.93% 17.46%
SEI Investments Co (Symbol: SEIC) 1.17% 15.07% 16.24%
International Business Machines Corp (Symbol: IBM) 4.71% 10.26% 14.97%
Black Hills Corporation (Symbol: BKH) 3.20% 8.61% 11.81%
Another consideration with dividend growth stocks is just how much the dividend is growing. We looked up the trailing twelve months worth of dividends shareholders of each of the above five companies have collected, and then also looked up the same number for the prior trailing twelve months. This gives us a rough yardstick to see how much the dividend has grown, from one trailing twelve month period to another.
STOCK PRIOR TTM DIVIDEND TTM DIVIDEND % GROWTH
Telephone & Data Systems Inc (Symbol: TDS) $0.67 $0.69 2.99%
ABM Industries, Inc. (Symbol: ABM) $0.735 $0.755 2.72%
SEI Investments Co (Symbol: SEIC) $0.7 $0.74 5.71%
International Business Machines Corp (Symbol: IBM) $6.5 $6.54 0.62%
Black Hills Corporation (Symbol: BKH) $2.14 $2.26 5.61%
These five stocks are part of our full Dividend Aristocrats List. The average analyst target price data upon which this article was based, is courtesy of data provided by Zacks Investment Research via Quandl.com.
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Dividend Growth Stocks: 25 Aristocrats »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Telephone & Data Systems Inc (Symbol: TDS) $19.98 $31.50 57.66% ABM Industries, Inc. (Symbol: ABM) $49.74 $57.67 15.93% SEI Investments Co (Symbol: SEIC) $63.15 $72.67 15.07% International Business Machines Corp (Symbol: IBM) $139.41 $153.71 10.26% Black Hills Corporation (Symbol: BKH) $70.71 $76.80 8.61% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Telephone & Data Systems Inc (Symbol: TDS) 3.50% 57.66% 61.16% ABM Industries, Inc. (Symbol: ABM) 1.53% 15.93% 17.46% SEI Investments Co (Symbol: SEIC) 1.17% 15.07% 16.24% International Business Machines Corp (Symbol: IBM) 4.71% 10.26% 14.97% Black Hills Corporation (Symbol: BKH) 3.20% 8.61% 11.81% Another consideration with dividend growth stocks is just how much the dividend is growing. Telephone & Data Systems Inc (Symbol: TDS) $0.67 $0.69 2.99% ABM Industries, Inc. (Symbol: ABM) $0.735 $0.755 2.72% SEI Investments Co (Symbol: SEIC) $0.7 $0.74 5.71% International Business Machines Corp (Symbol: IBM) $6.5 $6.54 0.62% Black Hills Corporation (Symbol: BKH) $2.14 $2.26 5.61% These five stocks are part of our full Dividend Aristocrats List. | Telephone & Data Systems Inc (Symbol: TDS) $19.98 $31.50 57.66% ABM Industries, Inc. (Symbol: ABM) $49.74 $57.67 15.93% SEI Investments Co (Symbol: SEIC) $63.15 $72.67 15.07% International Business Machines Corp (Symbol: IBM) $139.41 $153.71 10.26% Black Hills Corporation (Symbol: BKH) $70.71 $76.80 8.61% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Telephone & Data Systems Inc (Symbol: TDS) 3.50% 57.66% 61.16% ABM Industries, Inc. (Symbol: ABM) 1.53% 15.93% 17.46% SEI Investments Co (Symbol: SEIC) 1.17% 15.07% 16.24% International Business Machines Corp (Symbol: IBM) 4.71% 10.26% 14.97% Black Hills Corporation (Symbol: BKH) 3.20% 8.61% 11.81% Another consideration with dividend growth stocks is just how much the dividend is growing. Telephone & Data Systems Inc (Symbol: TDS) $0.67 $0.69 2.99% ABM Industries, Inc. (Symbol: ABM) $0.735 $0.755 2.72% SEI Investments Co (Symbol: SEIC) $0.7 $0.74 5.71% International Business Machines Corp (Symbol: IBM) $6.5 $6.54 0.62% Black Hills Corporation (Symbol: BKH) $2.14 $2.26 5.61% These five stocks are part of our full Dividend Aristocrats List. | Telephone & Data Systems Inc (Symbol: TDS) $19.98 $31.50 57.66% ABM Industries, Inc. (Symbol: ABM) $49.74 $57.67 15.93% SEI Investments Co (Symbol: SEIC) $63.15 $72.67 15.07% International Business Machines Corp (Symbol: IBM) $139.41 $153.71 10.26% Black Hills Corporation (Symbol: BKH) $70.71 $76.80 8.61% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Telephone & Data Systems Inc (Symbol: TDS) 3.50% 57.66% 61.16% ABM Industries, Inc. (Symbol: ABM) 1.53% 15.93% 17.46% SEI Investments Co (Symbol: SEIC) 1.17% 15.07% 16.24% International Business Machines Corp (Symbol: IBM) 4.71% 10.26% 14.97% Black Hills Corporation (Symbol: BKH) 3.20% 8.61% 11.81% Another consideration with dividend growth stocks is just how much the dividend is growing. Telephone & Data Systems Inc (Symbol: TDS) $0.67 $0.69 2.99% ABM Industries, Inc. (Symbol: ABM) $0.735 $0.755 2.72% SEI Investments Co (Symbol: SEIC) $0.7 $0.74 5.71% International Business Machines Corp (Symbol: IBM) $6.5 $6.54 0.62% Black Hills Corporation (Symbol: BKH) $2.14 $2.26 5.61% These five stocks are part of our full Dividend Aristocrats List. | Telephone & Data Systems Inc (Symbol: TDS) $19.98 $31.50 57.66% ABM Industries, Inc. (Symbol: ABM) $49.74 $57.67 15.93% SEI Investments Co (Symbol: SEIC) $63.15 $72.67 15.07% International Business Machines Corp (Symbol: IBM) $139.41 $153.71 10.26% Black Hills Corporation (Symbol: BKH) $70.71 $76.80 8.61% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Telephone & Data Systems Inc (Symbol: TDS) 3.50% 57.66% 61.16% ABM Industries, Inc. (Symbol: ABM) 1.53% 15.93% 17.46% SEI Investments Co (Symbol: SEIC) 1.17% 15.07% 16.24% International Business Machines Corp (Symbol: IBM) 4.71% 10.26% 14.97% Black Hills Corporation (Symbol: BKH) 3.20% 8.61% 11.81% Another consideration with dividend growth stocks is just how much the dividend is growing. Telephone & Data Systems Inc (Symbol: TDS) $0.67 $0.69 2.99% ABM Industries, Inc. (Symbol: ABM) $0.735 $0.755 2.72% SEI Investments Co (Symbol: SEIC) $0.7 $0.74 5.71% International Business Machines Corp (Symbol: IBM) $6.5 $6.54 0.62% Black Hills Corporation (Symbol: BKH) $2.14 $2.26 5.61% These five stocks are part of our full Dividend Aristocrats List. |
29312.0 | 2021-08-16 00:00:00 UTC | ABM Industries Stock Has Achieved Its Near-Term Potential | ABM | https://www.nasdaq.com/articles/abm-industries-stock-has-achieved-its-near-term-potential-2021-08-16 | nan | nan | After close to a 130% gain since the March 23 lows of the last year, at the current price of $48 per share, we believe ABM Industries Stock (NYSE: ABM) is trading close to its near-term potential. ABM Industries, a provider of integrated facility solutions, has seen its stock rally from $20 to $48 off the March bottom compared to the S&P which moved around 100% – the stock is leading the broader markets and has gained 22% over the last twelve months. That said, ABM Industries’ top-line has decreased 8% to a consolidated figure of $5.87 billion for the last four quarters from the consolidated figure of $6.40 billion for the four quarters before that. The revenues mainly suffered due to a significant drop in the aviation business category as a result of the Covid-19 pandemic. However, it was partially offset by growth in new pandemic-related services like EnhancedClean, primarily relating to the higher demand for cleaning and disinfectant services.
ABM Industries’ stock has surpassed the level it was at before the drop in February 2020 due to the coronavirus outbreak becoming a pandemic. This seems to make it fully valued as, in reality, revenues are unlikely to see a major jump in 2021 as compared to the last year.
The company’s revenues fell 7% from $6.4 billion in 2018 to about $6 billion in 2020 (FY Nov-Oct). Further, its net income figures decreased from $98 million to $0.3 million in 2020, primarily driven by higher selling, general, and administrative expenses and an increase in impairment loss. Additionally, if we compare the 2018 figures with the consolidated numbers over the last four quarters, ABM’s revenues have declined by 9% to $5.9 billion. This was mainly due to the impact of the Covid-19 pandemic.
While the company’s top-line and revenue per share (RPS) has decreased over 2018-2020, its P/S (price-to-sales) multiple has increased. We believe the stock is likely to trade sideways in the near term after the recent growth and the potential weakness from a recession-driven by the Covid outbreak. Our dashboard “What Factors Drove 49% Change In ABM Industries Stock Between 2018-End And Now?” has the underlying numbers.
ABM Industries’ P/S multiple slightly increased from 0.3x in FY 2018 to just above 0.4x in FY 2020. Further, the company’s P/S has increased to 0.6x now, and we believe the multiple is appropriate despite being higher as compared to the recent years.
So Where Is The Stock Headed?
ABM Industries’ top-line suffered in 2020 primarily due to a significant decline in the aviation business category (integrated facilities services offered to airlines and airports). The segment was down due to the impact of the Covid-19 crisis. Further, the same trend continued in the first half of 2021 also, with aviation business decreasing by 31% y-o-y. That said, the demand for pandemic-related services like cleaning and disinfectant services increased in 2020, which led the company to launch several pandemic-related projects such as EnhancedClean. Moving forward, given the heightened sense for cleanliness post the pandemic, we expect these services to take in strong revenues. Further, the aviation segment is likely to recover as the Covid-19 related travel restrictions are eased. Overall, ABM Industries is expected to report positive revenue growth over the subsequent years, which is also the main reason behind favorable investor sentiment toward the stock.
The actual recovery and its timing hinge on the broader containment of the coronavirus spread. Our dashboard Trends In U.S. Covid-19 Cases provides an overview of how the pandemic has been spreading in the U.S. and contrasts with trends in Israel. Following the Fed stimulus — which set a floor on fear — the market has been willing to “look through” the current weak period and take a longer-term view. With investors focusing their attention on 2021 results, the valuations become important in finding value. Though market sentiment can be fickle, and evidence of an uptick in new cases could spook investors once again.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | ABM Industries’ top-line suffered in 2020 primarily due to a significant decline in the aviation business category (integrated facilities services offered to airlines and airports). Overall, ABM Industries is expected to report positive revenue growth over the subsequent years, which is also the main reason behind favorable investor sentiment toward the stock. After close to a 130% gain since the March 23 lows of the last year, at the current price of $48 per share, we believe ABM Industries Stock (NYSE: ABM) is trading close to its near-term potential. | After close to a 130% gain since the March 23 lows of the last year, at the current price of $48 per share, we believe ABM Industries Stock (NYSE: ABM) is trading close to its near-term potential. ABM Industries’ top-line suffered in 2020 primarily due to a significant decline in the aviation business category (integrated facilities services offered to airlines and airports). ABM Industries, a provider of integrated facility solutions, has seen its stock rally from $20 to $48 off the March bottom compared to the S&P which moved around 100% – the stock is leading the broader markets and has gained 22% over the last twelve months. | After close to a 130% gain since the March 23 lows of the last year, at the current price of $48 per share, we believe ABM Industries Stock (NYSE: ABM) is trading close to its near-term potential. ABM Industries, a provider of integrated facility solutions, has seen its stock rally from $20 to $48 off the March bottom compared to the S&P which moved around 100% – the stock is leading the broader markets and has gained 22% over the last twelve months. ABM Industries’ top-line suffered in 2020 primarily due to a significant decline in the aviation business category (integrated facilities services offered to airlines and airports). | ABM Industries’ stock has surpassed the level it was at before the drop in February 2020 due to the coronavirus outbreak becoming a pandemic. After close to a 130% gain since the March 23 lows of the last year, at the current price of $48 per share, we believe ABM Industries Stock (NYSE: ABM) is trading close to its near-term potential. ABM Industries, a provider of integrated facility solutions, has seen its stock rally from $20 to $48 off the March bottom compared to the S&P which moved around 100% – the stock is leading the broader markets and has gained 22% over the last twelve months. |
29313.0 | 2021-08-03 00:00:00 UTC | 3 Stocks to Hold for the Next 20 Years | ABM | https://www.nasdaq.com/articles/3-stocks-to-hold-for-the-next-20-years-2021-08-03 | nan | nan | Ideally you should be buying stocks for your portfolio with the idea in mind that you will own them forever. While few, if any, investors actually do that, the purpose of the exercise is to create a mindset that differentiates you from the day trader, who's constantly flitting in and out of positions.
As the investing saying goes, your portfolio returns are not based on market timing, but rather by time in the market. It's why buy-and-hold investors are far more successful than those who are always buying and selling shares.
While any stock you purchase should be held for a minimum of three to five years, the three stocks below are ones you can comfortably own for the next 20 years and not worry about.
Image source: Getty Images.
1. ABM Industries
Janitorial services and facilities manager ABM Industries (NYSE: ABM) is in an industry so boring you probably just fell asleep reading that sentence. Yet it's the ho-hum nature of ABM's business that makes it an easy call to be a long-term hold in your portfolio.
ABM has been around for 112 years, meaning its been through two world wars, the Great Depression, the Tech Wreck of 2000, the War on Terror, the Great Recession, and the pandemic. To say it's survived more than a few upheavals and continues to thrive would be an understatement.
Particularly after the COVID-19 outbreak, and now with the spread of variants of the coronavirus globally, there's a heightened need for cleanliness and sanitation. ABM has developed stringent cleaning protocols, which it calls EnhancedClean jobs, that helped it to more than double adjusted operating profits last year.
That's undoubtedly going to be a driver for future growth for some time to come, but even when the world returns to normalcy, its services will be in demand. Coupled with a dividend it has paid for 56 years -- and raised annually for the past 50 years, making its stock a Dividend King -- ABM Industries is a company you can set and forget in your portfolio.
Image source: Intuitive Surgical.
2. Intuitive Surgical
Robotic-assisted surgical systems are certainly much sexier than janitorial services; and Intuitive Surgical (NASDAQ: ISRG) is a stock you can own for the next two decades because it is at the leading edge of the industry that will be the future of how surgery is conducted, if that future isn't already here.
Intuitive Surgical is running so far ahead, its competitors aren't even close. It has installed well over 6,300 of its da Vinci systems that assist doctors in performing minimally invasive laparoscopic soft tissue procedures. Their accuracy leads to smaller visible scars after surgery and faster patient recovery times. The ubiquity in hospitals and surgical centers around the globe -- all of the competition's machines combined don't add up to half of Intuitive Surgical's installed base -- gives it something approaching monopoly status in the industry (which has admittedly led to some lawsuits).
There is future growth opportunity deriving from Intuitive Surgical's ability to continually expand the da Vinci's addressable market to other surgical procedures, such as thoracic, gynecological, urological, and general surgical practice where it has added wrist stapling capabilities. Look for this leading surgical assistant to keep leading the field.
Image source: Getty Images.
3. Jushi Holdings
Marijuana is another area with massive potential, even if the results in the space have been less than spectacular so far. Some 36 U.S. states have legalized medical marijuana use so far, and another 18 allow marijuana to be sold for adult usage.
Taxes and regulations have been two of the biggest hangovers confronting the industry, but Jushi Holdings (OTC: JUSHF) just might be able to circumnavigate these hazards better than others because of its narrow focus.
The multi-state operator currently targets growth in just three core states, but it's looking to expand to new markets with selective acquisitions, such as its recent purchase of Nature's Remedy in Massachusetts. It's opening 10 to 12 new stores this year, which will give it as many as 27 by the end of the year, and Jushi intends to grow its cultivation assets from three states to five states.
Jushi is an exciting opportunity because it is a stock offering investors high rates of growth today. Over the coming decades as the cannabis industry matures in the U.S., it should be one of its leading lights that will also provide stable returns in the future as its base of operations spreads.
It's a riskier investment than either ABM Industries or Intuitive Surgical, but should be one investors can readily own for the next 20 years and beyond.
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Rich Duprey owns shares of ABM Industries. The Motley Fool owns shares of and recommends Intuitive Surgical and Jushi Holdings. The Motley Fool recommends the following options: long January 2022 $580 calls on Intuitive Surgical and short January 2022 $600 calls on Intuitive Surgical. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | ABM has developed stringent cleaning protocols, which it calls EnhancedClean jobs, that helped it to more than double adjusted operating profits last year. ABM Industries Janitorial services and facilities manager ABM Industries (NYSE: ABM) is in an industry so boring you probably just fell asleep reading that sentence. Yet it's the ho-hum nature of ABM's business that makes it an easy call to be a long-term hold in your portfolio. | ABM Industries Janitorial services and facilities manager ABM Industries (NYSE: ABM) is in an industry so boring you probably just fell asleep reading that sentence. Yet it's the ho-hum nature of ABM's business that makes it an easy call to be a long-term hold in your portfolio. ABM has been around for 112 years, meaning its been through two world wars, the Great Depression, the Tech Wreck of 2000, the War on Terror, the Great Recession, and the pandemic. | ABM Industries Janitorial services and facilities manager ABM Industries (NYSE: ABM) is in an industry so boring you probably just fell asleep reading that sentence. Yet it's the ho-hum nature of ABM's business that makes it an easy call to be a long-term hold in your portfolio. ABM has been around for 112 years, meaning its been through two world wars, the Great Depression, the Tech Wreck of 2000, the War on Terror, the Great Recession, and the pandemic. | ABM Industries Janitorial services and facilities manager ABM Industries (NYSE: ABM) is in an industry so boring you probably just fell asleep reading that sentence. Yet it's the ho-hum nature of ABM's business that makes it an easy call to be a long-term hold in your portfolio. ABM has been around for 112 years, meaning its been through two world wars, the Great Depression, the Tech Wreck of 2000, the War on Terror, the Great Recession, and the pandemic. |
29314.0 | 2021-07-31 00:00:00 UTC | We Think ABM Industries (NYSE:ABM) Can Manage Its Debt With Ease | ABM | https://www.nasdaq.com/articles/we-think-abm-industries-nyse%3Aabm-can-manage-its-debt-with-ease-2021-07-31 | nan | nan | Warren Buffett famously said, 'Volatility is far from synonymous with risk.' When we think about how risky a company is, we always like to look at its use of debt, since debt overload can lead to ruin. We note that ABM Industries Incorporated (NYSE:ABM) does have debt on its balance sheet. But the real question is whether this debt is making the company risky.
When Is Debt Dangerous?
Debt assists a business until the business has trouble paying it off, either with new capital or with free cash flow. Ultimately, if the company can't fulfill its legal obligations to repay debt, shareholders could walk away with nothing. While that is not too common, we often do see indebted companies permanently diluting shareholders because lenders force them to raise capital at a distressed price. By replacing dilution, though, debt can be an extremely good tool for businesses that need capital to invest in growth at high rates of return. When we think about a company's use of debt, we first look at cash and debt together.
How Much Debt Does ABM Industries Carry?
The image below, which you can click on for greater detail, shows that ABM Industries had debt of US$650.7m at the end of April 2021, a reduction from US$1.21b over a year. On the flip side, it has US$435.7m in cash leading to net debt of about US$215.0m.
NYSE:ABM Debt to Equity History July 31st 2021
How Strong Is ABM Industries' Balance Sheet?
The latest balance sheet data shows that ABM Industries had liabilities of US$1.06b due within a year, and liabilities of US$1.13b falling due after that. Offsetting this, it had US$435.7m in cash and US$916.1m in receivables that were due within 12 months. So it has liabilities totalling US$840.4m more than its cash and near-term receivables, combined.
ABM Industries has a market capitalization of US$3.12b, so it could very likely raise cash to ameliorate its balance sheet, if the need arose. But it's clear that we should definitely closely examine whether it can manage its debt without dilution.
We measure a company's debt load relative to its earnings power by looking at its net debt divided by its earnings before interest, tax, depreciation, and amortization (EBITDA) and by calculating how easily its earnings before interest and tax (EBIT) cover its interest expense (interest cover). Thus we consider debt relative to earnings both with and without depreciation and amortization expenses.
ABM Industries has net debt of just 0.48 times EBITDA, indicating that it is certainly not a reckless borrower. And this view is supported by the solid interest coverage, with EBIT coming in at 8.9 times the interest expense over the last year. In addition to that, we're happy to report that ABM Industries has boosted its EBIT by 53%, thus reducing the spectre of future debt repayments. When analysing debt levels, the balance sheet is the obvious place to start. But it is future earnings, more than anything, that will determine ABM Industries's ability to maintain a healthy balance sheet going forward. So if you want to see what the professionals think, you might find this free report on analyst profit forecasts to be interesting.
Finally, while the tax-man may adore accounting profits, lenders only accept cold hard cash. So the logical step is to look at the proportion of that EBIT that is matched by actual free cash flow. Over the last three years, ABM Industries actually produced more free cash flow than EBIT. That sort of strong cash conversion gets us as excited as the crowd when the beat drops at a Daft Punk concert.
Our View
Happily, ABM Industries's impressive conversion of EBIT to free cash flow implies it has the upper hand on its debt. And the good news does not stop there, as its EBIT growth rate also supports that impression! Zooming out, ABM Industries seems to use debt quite reasonably; and that gets the nod from us. While debt does bring risk, when used wisely it can also bring a higher return on equity. There's no doubt that we learn most about debt from the balance sheet. But ultimately, every company can contain risks that exist outside of the balance sheet. These risks can be hard to spot. Every company has them, and we've spotted 1 warning sign for ABM Industries you should know about.
If, after all that, you're more interested in a fast growing company with a rock-solid balance sheet, then check out our list of net cash growth stocks without delay.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Our View Happily, ABM Industries's impressive conversion of EBIT to free cash flow implies it has the upper hand on its debt. We note that ABM Industries Incorporated (NYSE:ABM) does have debt on its balance sheet. How Much Debt Does ABM Industries Carry? | The latest balance sheet data shows that ABM Industries had liabilities of US$1.06b due within a year, and liabilities of US$1.13b falling due after that. Our View Happily, ABM Industries's impressive conversion of EBIT to free cash flow implies it has the upper hand on its debt. We note that ABM Industries Incorporated (NYSE:ABM) does have debt on its balance sheet. | We note that ABM Industries Incorporated (NYSE:ABM) does have debt on its balance sheet. How Much Debt Does ABM Industries Carry? The image below, which you can click on for greater detail, shows that ABM Industries had debt of US$650.7m at the end of April 2021, a reduction from US$1.21b over a year. | Over the last three years, ABM Industries actually produced more free cash flow than EBIT. We note that ABM Industries Incorporated (NYSE:ABM) does have debt on its balance sheet. How Much Debt Does ABM Industries Carry? |
29315.0 | 2021-07-15 00:00:00 UTC | ABM September 17th Options Begin Trading | ABM | https://www.nasdaq.com/articles/abm-september-17th-options-begin-trading-2021-07-15 | nan | nan | Investors in ABM Industries, Inc. (Symbol: ABM) saw new options begin trading today, for the September 17th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABM options chain for the new September 17th contracts and identified one put and one call contract of particular interest.
The put contract at the $45.00 strike price has a current bid of $1.90. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $45.00, but will also collect the premium, putting the cost basis of the shares at $43.10 (before broker commissions). To an investor already interested in purchasing shares of ABM, that could represent an attractive alternative to paying $45.68/share today.
Because the $45.00 strike represents an approximate 1% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 100%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 4.22% return on the cash commitment, or 24.08% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for ABM Industries, Inc., and highlighting in green where the $45.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $50.00 strike price has a current bid of 90 cents. If an investor was to purchase shares of ABM stock at the current price level of $45.68/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $50.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 11.43% if the stock gets called away at the September 17th expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if ABM shares really soar, which is why looking at the trailing twelve month trading history for ABM Industries, Inc., as well as studying the business fundamentals becomes important. Below is a chart showing ABM's trailing twelve month trading history, with the $50.00 strike highlighted in red:
Considering the fact that the $50.00 strike represents an approximate 9% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 1.97% boost of extra return to the investor, or 11.24% annualized, which we refer to as the YieldBoost.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 252 trading day closing values as well as today's price of $45.68) to be 33%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Below is a chart showing ABM's trailing twelve month trading history, with the $50.00 strike highlighted in red: Considering the fact that the $50.00 strike represents an approximate 9% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in ABM Industries, Inc. (Symbol: ABM) saw new options begin trading today, for the September 17th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABM options chain for the new September 17th contracts and identified one put and one call contract of particular interest. | Below is a chart showing ABM's trailing twelve month trading history, with the $50.00 strike highlighted in red: Considering the fact that the $50.00 strike represents an approximate 9% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in ABM Industries, Inc. (Symbol: ABM) saw new options begin trading today, for the September 17th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABM options chain for the new September 17th contracts and identified one put and one call contract of particular interest. | Below is a chart showing the trailing twelve month trading history for ABM Industries, Inc., and highlighting in green where the $45.00 strike is located relative to that history: Turning to the calls side of the option chain, the call contract at the $50.00 strike price has a current bid of 90 cents. Below is a chart showing ABM's trailing twelve month trading history, with the $50.00 strike highlighted in red: Considering the fact that the $50.00 strike represents an approximate 9% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in ABM Industries, Inc. (Symbol: ABM) saw new options begin trading today, for the September 17th expiration. | At Stock Options Channel, our YieldBoost formula has looked up and down the ABM options chain for the new September 17th contracts and identified one put and one call contract of particular interest. Below is a chart showing ABM's trailing twelve month trading history, with the $50.00 strike highlighted in red: Considering the fact that the $50.00 strike represents an approximate 9% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in ABM Industries, Inc. (Symbol: ABM) saw new options begin trading today, for the September 17th expiration. |
29316.0 | 2021-07-15 00:00:00 UTC | Thursday's ETF with Unusual Volume: FYT | ABM | https://www.nasdaq.com/articles/thursdays-etf-with-unusual-volume%3A-fyt-2021-07-15 | nan | nan | The First Trust Small Cap Value AlphaDEX Fund ETF is seeing unusually high volume in afternoon trading Thursday, with over 139,000 shares traded versus three month average volume of about 53,000. Shares of FYT were down about 0.4% on the day.
Components of that ETF with the highest volume on Thursday were Transocean, trading off about 3.7% with over 14.3 million shares changing hands so far this session, and Alcoa, down about 1.6% on volume of over 4.1 million shares. ABM Industries is the component faring the best Thursday, higher by about 2.1% on the day, while Abercrombie & Fitch is lagging other components of the First Trust Small Cap Value AlphaDEX Fund ETF, trading lower by about 5.7%.
VIDEO: Thursday's ETF with Unusual Volume: FYT
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | ABM Industries is the component faring the best Thursday, higher by about 2.1% on the day, while Abercrombie & Fitch is lagging other components of the First Trust Small Cap Value AlphaDEX Fund ETF, trading lower by about 5.7%. The First Trust Small Cap Value AlphaDEX Fund ETF is seeing unusually high volume in afternoon trading Thursday, with over 139,000 shares traded versus three month average volume of about 53,000. Components of that ETF with the highest volume on Thursday were Transocean, trading off about 3.7% with over 14.3 million shares changing hands so far this session, and Alcoa, down about 1.6% on volume of over 4.1 million shares. | ABM Industries is the component faring the best Thursday, higher by about 2.1% on the day, while Abercrombie & Fitch is lagging other components of the First Trust Small Cap Value AlphaDEX Fund ETF, trading lower by about 5.7%. The First Trust Small Cap Value AlphaDEX Fund ETF is seeing unusually high volume in afternoon trading Thursday, with over 139,000 shares traded versus three month average volume of about 53,000. VIDEO: Thursday's ETF with Unusual Volume: FYT The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | ABM Industries is the component faring the best Thursday, higher by about 2.1% on the day, while Abercrombie & Fitch is lagging other components of the First Trust Small Cap Value AlphaDEX Fund ETF, trading lower by about 5.7%. The First Trust Small Cap Value AlphaDEX Fund ETF is seeing unusually high volume in afternoon trading Thursday, with over 139,000 shares traded versus three month average volume of about 53,000. Components of that ETF with the highest volume on Thursday were Transocean, trading off about 3.7% with over 14.3 million shares changing hands so far this session, and Alcoa, down about 1.6% on volume of over 4.1 million shares. | ABM Industries is the component faring the best Thursday, higher by about 2.1% on the day, while Abercrombie & Fitch is lagging other components of the First Trust Small Cap Value AlphaDEX Fund ETF, trading lower by about 5.7%. Components of that ETF with the highest volume on Thursday were Transocean, trading off about 3.7% with over 14.3 million shares changing hands so far this session, and Alcoa, down about 1.6% on volume of over 4.1 million shares. VIDEO: Thursday's ETF with Unusual Volume: FYT The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. |
29317.0 | 2021-06-29 00:00:00 UTC | ABM Industries Incorporated (ABM) Ex-Dividend Date Scheduled for June 30, 2021 | ABM | https://www.nasdaq.com/articles/abm-industries-incorporated-abm-ex-dividend-date-scheduled-for-june-30-2021-2021-06-29 | nan | nan | ABM Industries Incorporated (ABM) will begin trading ex-dividend on June 30, 2021. A cash dividend payment of $0.19 per share is scheduled to be paid on August 02, 2021. Shareholders who purchased ABM prior to the ex-dividend date are eligible for the cash dividend payment. This marks the 3rd quarter that ABM has paid the same dividend. At the current stock price of $44.58, the dividend yield is 1.7%.
The previous trading day's last sale of ABM was $44.58, representing a -19.65% decrease from the 52 week high of $55.48 and a 42.16% increase over the 52 week low of $31.36.
ABM is a part of the Technology sector, which includes companies such as United Rentals, Inc. (URI) and Gartner, Inc. (IT). ABM's current earnings per share, an indicator of a company's profitability, is $3.17. Zacks Investment Research reports ABM's forecasted earnings growth in 2021 as 40.74%, compared to an industry average of 17%.
For more information on the declaration, record and payment dates, visit the ABM Dividend History page. Our Dividend Calendar has the full list of stocks that have an ex-dividend today.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | ABM is a part of the Technology sector, which includes companies such as United Rentals, Inc. (URI) and Gartner, Inc. (IT). Zacks Investment Research reports ABM's forecasted earnings growth in 2021 as 40.74%, compared to an industry average of 17%. For more information on the declaration, record and payment dates, visit the ABM Dividend History page. | ABM Industries Incorporated (ABM) will begin trading ex-dividend on June 30, 2021. Shareholders who purchased ABM prior to the ex-dividend date are eligible for the cash dividend payment. ABM's current earnings per share, an indicator of a company's profitability, is $3.17. | ABM Industries Incorporated (ABM) will begin trading ex-dividend on June 30, 2021. Shareholders who purchased ABM prior to the ex-dividend date are eligible for the cash dividend payment. For more information on the declaration, record and payment dates, visit the ABM Dividend History page. | Shareholders who purchased ABM prior to the ex-dividend date are eligible for the cash dividend payment. ABM's current earnings per share, an indicator of a company's profitability, is $3.17. ABM Industries Incorporated (ABM) will begin trading ex-dividend on June 30, 2021. |
29318.0 | 2021-06-28 00:00:00 UTC | 5 Dividend Aristocrats Where Analysts See Capital Gains | ABM | https://www.nasdaq.com/articles/5-dividend-aristocrats-where-analysts-see-capital-gains-2021-06-28 | nan | nan | To become a "Dividend Aristocrat," a dividend paying company must accomplish an incredible feat: consistently increase shareholder dividends every year for at least 20 consecutive years. Companies with this kind of track record tend to attract a lot of investor attention — and furthermore, "tracking" funds that follow the Dividend Aristocrats Index must own them. With all of this demand for shares, dividend growth stocks can sometimes become "fully priced," where there isn't much upside to analyst targets.
But we here at ETF Channel have looked through the underlying holdings of the SPDR S&P Dividend ETF (which tracks the S&P High Yield Dividend Aristocrats Index), and found these five dividend growth stocks that actually still have fairly substantial upside to the average analyst target price 12 months out. Which means, if the analysts are correct, these are five dividend growth stocks that could produce capital gains in addition to their growing dividend payments.
In the first table below, we present the five stocks. The recent share price, average analyst 12-month target price, and percentage upside to reach the analyst target are presented.
STOCK RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET
Telephone & Data Systems Inc (Symbol: TDS) $23.54 $31.38 33.28%
ABM Industries, Inc. (Symbol: ABM) $45.02 $58.33 29.57%
Fuller Company (Symbol: FUL) $63.79 $73.67 15.48%
SEI Investments Co (Symbol: SEIC) $62.52 $71.00 13.56%
Black Hills Corporation (Symbol: BKH) $67.98 $75.20 10.62%
The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. To ballpark that total return potential, we have added the current yield to the analyst target price upside, in order to arrive at the 12-month total return potential:
STOCK DIVIDEND YIELD % UPSIDE TO ANALYST TARGET IMPLIED TOTAL RETURN POTENTIAL
Telephone & Data Systems Inc (Symbol: TDS) 2.97% 33.28% 36.25%
ABM Industries, Inc. (Symbol: ABM) 1.69% 29.57% 31.26%
Fuller Company (Symbol: FUL) 1.05% 15.48% 16.53%
SEI Investments Co (Symbol: SEIC) 1.18% 13.56% 14.74%
Black Hills Corporation (Symbol: BKH) 3.32% 10.62% 13.94%
Another consideration with dividend growth stocks is just how much the dividend is growing. We looked up the trailing twelve months worth of dividends shareholders of each of the above five companies have collected, and then also looked up the same number for the prior trailing twelve months. This gives us a rough yardstick to see how much the dividend has grown, from one trailing twelve month period to another.
STOCK PRIOR TTM DIVIDEND TTM DIVIDEND % GROWTH
Telephone & Data Systems Inc (Symbol: TDS) $0.67 $0.69 2.99%
ABM Industries, Inc. (Symbol: ABM) $0.73 $0.75 2.74%
Fuller Company (Symbol: FUL) $0.643 $0.657 2.18%
SEI Investments Co (Symbol: SEIC) $0.7 $0.74 5.71%
Black Hills Corporation (Symbol: BKH) $2.11 $2.23 5.69%
These five stocks are part of our full Dividend Aristocrats List. The average analyst target price data upon which this article was based, is courtesy of data provided by Zacks Investment Research via Quandl.com.
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Dividend Growth Stocks: 25 Aristocrats »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Telephone & Data Systems Inc (Symbol: TDS) $23.54 $31.38 33.28% ABM Industries, Inc. (Symbol: ABM) $45.02 $58.33 29.57% Fuller Company (Symbol: FUL) $63.79 $73.67 15.48% SEI Investments Co (Symbol: SEIC) $62.52 $71.00 13.56% Black Hills Corporation (Symbol: BKH) $67.98 $75.20 10.62% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Telephone & Data Systems Inc (Symbol: TDS) 2.97% 33.28% 36.25% ABM Industries, Inc. (Symbol: ABM) 1.69% 29.57% 31.26% Fuller Company (Symbol: FUL) 1.05% 15.48% 16.53% SEI Investments Co (Symbol: SEIC) 1.18% 13.56% 14.74% Black Hills Corporation (Symbol: BKH) 3.32% 10.62% 13.94% Another consideration with dividend growth stocks is just how much the dividend is growing. Telephone & Data Systems Inc (Symbol: TDS) $0.67 $0.69 2.99% ABM Industries, Inc. (Symbol: ABM) $0.73 $0.75 2.74% Fuller Company (Symbol: FUL) $0.643 $0.657 2.18% SEI Investments Co (Symbol: SEIC) $0.7 $0.74 5.71% Black Hills Corporation (Symbol: BKH) $2.11 $2.23 5.69% These five stocks are part of our full Dividend Aristocrats List. | Telephone & Data Systems Inc (Symbol: TDS) $23.54 $31.38 33.28% ABM Industries, Inc. (Symbol: ABM) $45.02 $58.33 29.57% Fuller Company (Symbol: FUL) $63.79 $73.67 15.48% SEI Investments Co (Symbol: SEIC) $62.52 $71.00 13.56% Black Hills Corporation (Symbol: BKH) $67.98 $75.20 10.62% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Telephone & Data Systems Inc (Symbol: TDS) 2.97% 33.28% 36.25% ABM Industries, Inc. (Symbol: ABM) 1.69% 29.57% 31.26% Fuller Company (Symbol: FUL) 1.05% 15.48% 16.53% SEI Investments Co (Symbol: SEIC) 1.18% 13.56% 14.74% Black Hills Corporation (Symbol: BKH) 3.32% 10.62% 13.94% Another consideration with dividend growth stocks is just how much the dividend is growing. Telephone & Data Systems Inc (Symbol: TDS) $0.67 $0.69 2.99% ABM Industries, Inc. (Symbol: ABM) $0.73 $0.75 2.74% Fuller Company (Symbol: FUL) $0.643 $0.657 2.18% SEI Investments Co (Symbol: SEIC) $0.7 $0.74 5.71% Black Hills Corporation (Symbol: BKH) $2.11 $2.23 5.69% These five stocks are part of our full Dividend Aristocrats List. | Telephone & Data Systems Inc (Symbol: TDS) $23.54 $31.38 33.28% ABM Industries, Inc. (Symbol: ABM) $45.02 $58.33 29.57% Fuller Company (Symbol: FUL) $63.79 $73.67 15.48% SEI Investments Co (Symbol: SEIC) $62.52 $71.00 13.56% Black Hills Corporation (Symbol: BKH) $67.98 $75.20 10.62% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Telephone & Data Systems Inc (Symbol: TDS) 2.97% 33.28% 36.25% ABM Industries, Inc. (Symbol: ABM) 1.69% 29.57% 31.26% Fuller Company (Symbol: FUL) 1.05% 15.48% 16.53% SEI Investments Co (Symbol: SEIC) 1.18% 13.56% 14.74% Black Hills Corporation (Symbol: BKH) 3.32% 10.62% 13.94% Another consideration with dividend growth stocks is just how much the dividend is growing. Telephone & Data Systems Inc (Symbol: TDS) $0.67 $0.69 2.99% ABM Industries, Inc. (Symbol: ABM) $0.73 $0.75 2.74% Fuller Company (Symbol: FUL) $0.643 $0.657 2.18% SEI Investments Co (Symbol: SEIC) $0.7 $0.74 5.71% Black Hills Corporation (Symbol: BKH) $2.11 $2.23 5.69% These five stocks are part of our full Dividend Aristocrats List. | Telephone & Data Systems Inc (Symbol: TDS) $23.54 $31.38 33.28% ABM Industries, Inc. (Symbol: ABM) $45.02 $58.33 29.57% Fuller Company (Symbol: FUL) $63.79 $73.67 15.48% SEI Investments Co (Symbol: SEIC) $62.52 $71.00 13.56% Black Hills Corporation (Symbol: BKH) $67.98 $75.20 10.62% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Telephone & Data Systems Inc (Symbol: TDS) 2.97% 33.28% 36.25% ABM Industries, Inc. (Symbol: ABM) 1.69% 29.57% 31.26% Fuller Company (Symbol: FUL) 1.05% 15.48% 16.53% SEI Investments Co (Symbol: SEIC) 1.18% 13.56% 14.74% Black Hills Corporation (Symbol: BKH) 3.32% 10.62% 13.94% Another consideration with dividend growth stocks is just how much the dividend is growing. Telephone & Data Systems Inc (Symbol: TDS) $0.67 $0.69 2.99% ABM Industries, Inc. (Symbol: ABM) $0.73 $0.75 2.74% Fuller Company (Symbol: FUL) $0.643 $0.657 2.18% SEI Investments Co (Symbol: SEIC) $0.7 $0.74 5.71% Black Hills Corporation (Symbol: BKH) $2.11 $2.23 5.69% These five stocks are part of our full Dividend Aristocrats List. |
29319.0 | 2021-06-25 00:00:00 UTC | ABM Industries Incorporated (NYSE:ABM) Looks Like A Good Stock, And It's Going Ex-Dividend Soon | ABM | https://www.nasdaq.com/articles/abm-industries-incorporated-nyse%3Aabm-looks-like-a-good-stock-and-its-going-ex-dividend | nan | nan | ABM Industries Incorporated (NYSE:ABM) is about to trade ex-dividend in the next 4 days. The ex-dividend date occurs one day before the record date which is the day on which shareholders need to be on the company's books in order to receive a dividend. It is important to be aware of the ex-dividend date because any trade on the stock needs to have been settled on or before the record date. Thus, you can purchase ABM Industries' shares before the 30th of June in order to receive the dividend, which the company will pay on the 2nd of August.
The company's next dividend payment will be US$0.19 per share, and in the last 12 months, the company paid a total of US$0.76 per share. Looking at the last 12 months of distributions, ABM Industries has a trailing yield of approximately 1.7% on its current stock price of $45.17. Dividends are a major contributor to investment returns for long term holders, but only if the dividend continues to be paid. As a result, readers should always check whether ABM Industries has been able to grow its dividends, or if the dividend might be cut.
Dividends are usually paid out of company profits, so if a company pays out more than it earned then its dividend is usually at greater risk of being cut. ABM Industries is paying out just 23% of its profit after tax, which is comfortably low and leaves plenty of breathing room in the case of adverse events. That said, even highly profitable companies sometimes might not generate enough cash to pay the dividend, which is why we should always check if the dividend is covered by cash flow. What's good is that dividends were well covered by free cash flow, with the company paying out 11% of its cash flow last year.
It's positive to see that ABM Industries's dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut.
Click here to see the company's payout ratio, plus analyst estimates of its future dividends.
NYSE:ABM Historic Dividend June 25th 2021
Have Earnings And Dividends Been Growing?
Stocks in companies that generate sustainable earnings growth often make the best dividend prospects, as it is easier to lift the dividend when earnings are rising. Investors love dividends, so if earnings fall and the dividend is reduced, expect a stock to be sold off heavily at the same time. That's why it's comforting to see ABM Industries's earnings have been skyrocketing, up 27% per annum for the past five years. With earnings per share growing rapidly and the company sensibly reinvesting almost all of its profits within the business, ABM Industries looks like a promising growth company.
Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. Since the start of our data, 10 years ago, ABM Industries has lifted its dividend by approximately 3.5% a year on average. It's good to see both earnings and the dividend have improved - although the former has been rising much quicker than the latter, possibly due to the company reinvesting more of its profits in growth.
Final Takeaway
Is ABM Industries an attractive dividend stock, or better left on the shelf? ABM Industries has been growing earnings at a rapid rate, and has a conservatively low payout ratio, implying that it is reinvesting heavily in its business; a sterling combination. Overall we think this is an attractive combination and worthy of further research.
On that note, you'll want to research what risks ABM Industries is facing. To help with this, we've discovered 1 warning sign for ABM Industries that you should be aware of before investing in their shares.
We wouldn't recommend just buying the first dividend stock you see, though. Here's a list of interesting dividend stocks with a greater than 2% yield and an upcoming dividend.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | ABM Industries is paying out just 23% of its profit after tax, which is comfortably low and leaves plenty of breathing room in the case of adverse events. ABM Industries has been growing earnings at a rapid rate, and has a conservatively low payout ratio, implying that it is reinvesting heavily in its business; a sterling combination. ABM Industries Incorporated (NYSE:ABM) is about to trade ex-dividend in the next 4 days. | It's positive to see that ABM Industries's dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut. NYSE:ABM Historic Dividend June 25th 2021 Have Earnings And Dividends Been Growing? ABM Industries Incorporated (NYSE:ABM) is about to trade ex-dividend in the next 4 days. | It's positive to see that ABM Industries's dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut. ABM Industries Incorporated (NYSE:ABM) is about to trade ex-dividend in the next 4 days. Thus, you can purchase ABM Industries' shares before the 30th of June in order to receive the dividend, which the company will pay on the 2nd of August. | It's positive to see that ABM Industries's dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut. ABM Industries Incorporated (NYSE:ABM) is about to trade ex-dividend in the next 4 days. Thus, you can purchase ABM Industries' shares before the 30th of June in order to receive the dividend, which the company will pay on the 2nd of August. |
29320.0 | 2021-06-22 00:00:00 UTC | Is ABM Industries Incorporated (NYSE:ABM) Trading At A 28% Discount? | ABM | https://www.nasdaq.com/articles/is-abm-industries-incorporated-nyse%3Aabm-trading-at-a-28-discount-2021-06-22 | nan | nan | Today we'll do a simple run through of a valuation method used to estimate the attractiveness of ABM Industries Incorporated (NYSE:ABM) as an investment opportunity by taking the forecast future cash flows of the company and discounting them back to today's value. Our analysis will employ the Discounted Cash Flow (DCF) model. Before you think you won't be able to understand it, just read on! It's actually much less complex than you'd imagine.
We generally believe that a company's value is the present value of all of the cash it will generate in the future. However, a DCF is just one valuation metric among many, and it is not without flaws. For those who are keen learners of equity analysis, the Simply Wall St analysis model here may be something of interest to you.
Step by step through the calculation
We're using the 2-stage growth model, which simply means we take in account two stages of company's growth. In the initial period the company may have a higher growth rate and the second stage is usually assumed to have a stable growth rate. In the first stage we need to estimate the cash flows to the business over the next ten years. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years.
A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, and so the sum of these future cash flows is then discounted to today's value:
10-year free cash flow (FCF) forecast
2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Levered FCF ($, Millions) US$255.7m US$241.2m US$233.6m US$229.8m US$228.6m US$229.1m US$230.8m US$233.4m US$236.6m US$240.3m
Growth Rate Estimate Source Analyst x3 Analyst x5 Est @ -3.16% Est @ -1.62% Est @ -0.53% Est @ 0.22% Est @ 0.75% Est @ 1.12% Est @ 1.38% Est @ 1.57%
Present Value ($, Millions) Discounted @ 6.9% US$239 US$211 US$191 US$176 US$164 US$153 US$145 US$137 US$130 US$123
("Est" = FCF growth rate estimated by Simply Wall St)
Present Value of 10-year Cash Flow (PVCF) = US$1.7b
We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 5-year average of the 10-year government bond yield of 2.0%. We discount the terminal cash flows to today's value at a cost of equity of 6.9%.
Terminal Value (TV)= FCF2030 × (1 + g) ÷ (r – g) = US$240m× (1 + 2.0%) ÷ (6.9%– 2.0%) = US$5.0b
Present Value of Terminal Value (PVTV)= TV / (1 + r)10= US$5.0b÷ ( 1 + 6.9%)10= US$2.6b
The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is US$4.2b. To get the intrinsic value per share, we divide this by the total number of shares outstanding. Compared to the current share price of US$45.6, the company appears a touch undervalued at a 28% discount to where the stock price trades currently. Valuations are imprecise instruments though, rather like a telescope - move a few degrees and end up in a different galaxy. Do keep this in mind.
NYSE:ABM Discounted Cash Flow June 22nd 2021
The assumptions
We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows. If you don't agree with these result, have a go at the calculation yourself and play with the assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at ABM Industries as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 6.9%, which is based on a levered beta of 1.043. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business.
Next Steps:
Whilst important, the DCF calculation shouldn't be the only metric you look at when researching a company. It's not possible to obtain a foolproof valuation with a DCF model. Instead the best use for a DCF model is to test certain assumptions and theories to see if they would lead to the company being undervalued or overvalued. For instance, if the terminal value growth rate is adjusted slightly, it can dramatically alter the overall result. Can we work out why the company is trading at a discount to intrinsic value? For ABM Industries, we've put together three important factors you should further research:
Risks: As an example, we've found 1 warning sign for ABM Industries that you need to consider before investing here.
Future Earnings: How does ABM's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart.
Other High Quality Alternatives: Do you like a good all-rounder? Explore our interactive list of high quality stocks to get an idea of what else is out there you may be missing!
PS. Simply Wall St updates its DCF calculation for every American stock every day, so if you want to find the intrinsic value of any other stock just search here.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Today we'll do a simple run through of a valuation method used to estimate the attractiveness of ABM Industries Incorporated (NYSE:ABM) as an investment opportunity by taking the forecast future cash flows of the company and discounting them back to today's value. Future Earnings: How does ABM's growth rate compare to its peers and the wider market? NYSE:ABM Discounted Cash Flow June 22nd 2021 The assumptions We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows. | NYSE:ABM Discounted Cash Flow June 22nd 2021 The assumptions We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows. Today we'll do a simple run through of a valuation method used to estimate the attractiveness of ABM Industries Incorporated (NYSE:ABM) as an investment opportunity by taking the forecast future cash flows of the company and discounting them back to today's value. Given that we are looking at ABM Industries as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. | NYSE:ABM Discounted Cash Flow June 22nd 2021 The assumptions We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows. Today we'll do a simple run through of a valuation method used to estimate the attractiveness of ABM Industries Incorporated (NYSE:ABM) as an investment opportunity by taking the forecast future cash flows of the company and discounting them back to today's value. Given that we are looking at ABM Industries as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. | NYSE:ABM Discounted Cash Flow June 22nd 2021 The assumptions We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows. Today we'll do a simple run through of a valuation method used to estimate the attractiveness of ABM Industries Incorporated (NYSE:ABM) as an investment opportunity by taking the forecast future cash flows of the company and discounting them back to today's value. Given that we are looking at ABM Industries as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. |
29321.0 | 2021-06-17 00:00:00 UTC | Relative Strength Alert For ABM Industries | ABM | https://www.nasdaq.com/articles/relative-strength-alert-for-abm-industries-2021-06-17 | nan | nan | The DividendRank formula at Dividend Channel ranks a coverage universe of thousands of dividend stocks, according to a proprietary formula designed to identify those stocks that combine two important characteristics — strong fundamentals and a valuation that looks inexpensive. ABM Industries, Inc. (Symbol: ABM) presently has an above average rank, in the top 50% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors.
But making ABM Industries, Inc. an even more interesting and timely stock to look at, is the fact that in trading on Thursday, shares of ABM entered into oversold territory, changing hands as low as $46 per share. We define oversold territory using the Relative Strength Index, or RSI, which is a technical analysis indicator used to measure momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30. In the case of ABM Industries, Inc., the RSI reading has hit 29.3 — by comparison, the universe of dividend stocks covered by Dividend Channel currently has an average RSI of 49.8. A falling stock price — all else being equal — creates a better opportunity for dividend investors to capture a higher yield. Indeed, ABM's recent annualized dividend of 0.76/share (currently paid in quarterly installments) works out to an annual yield of 1.63% based upon the recent $46.75 share price.
A bullish investor could look at ABM's 29.3 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. Among the fundamental datapoints dividend investors should investigate to decide if they are bullish on ABM is its dividend history. In general, dividends are not always predictable; but, looking at the history chart below can help in judging whether the most recent dividend is likely to continue.
Click here to find out what 9 other oversold dividend stocks you need to know about »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | A bullish investor could look at ABM's 29.3 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. ABM Industries, Inc. (Symbol: ABM) presently has an above average rank, in the top 50% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors. But making ABM Industries, Inc. an even more interesting and timely stock to look at, is the fact that in trading on Thursday, shares of ABM entered into oversold territory, changing hands as low as $46 per share. | In the case of ABM Industries, Inc., the RSI reading has hit 29.3 — by comparison, the universe of dividend stocks covered by Dividend Channel currently has an average RSI of 49.8. Indeed, ABM's recent annualized dividend of 0.76/share (currently paid in quarterly installments) works out to an annual yield of 1.63% based upon the recent $46.75 share price. ABM Industries, Inc. (Symbol: ABM) presently has an above average rank, in the top 50% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors. | But making ABM Industries, Inc. an even more interesting and timely stock to look at, is the fact that in trading on Thursday, shares of ABM entered into oversold territory, changing hands as low as $46 per share. In the case of ABM Industries, Inc., the RSI reading has hit 29.3 — by comparison, the universe of dividend stocks covered by Dividend Channel currently has an average RSI of 49.8. ABM Industries, Inc. (Symbol: ABM) presently has an above average rank, in the top 50% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors. | In the case of ABM Industries, Inc., the RSI reading has hit 29.3 — by comparison, the universe of dividend stocks covered by Dividend Channel currently has an average RSI of 49.8. Among the fundamental datapoints dividend investors should investigate to decide if they are bullish on ABM is its dividend history. ABM Industries, Inc. (Symbol: ABM) presently has an above average rank, in the top 50% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors. |
29322.0 | 2021-06-10 00:00:00 UTC | Validea Joel Greenblatt Strategy Daily Upgrade Report - 6/10/2021 | ABM | https://www.nasdaq.com/articles/validea-joel-greenblatt-strategy-daily-upgrade-report-6-10-2021-2021-06-10 | nan | nan | The following are today's upgrades for Validea's Earnings Yield Investor model based on the published strategy of Joel Greenblatt. This value model looks for companies with high return on capital and earnings yields.
ABM INDUSTRIES, INC. (ABM) is a mid-cap growth stock in the Business Services industry. The rating according to our strategy based on Joel Greenblatt changed from 80% to 90% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: ABM Industries Incorporated is a provider of integrated facility solutions. The Company operates through five segments: Janitorial, Facility Services, Parking, Building & Energy Solutions, and other. Its Janitorial segment provides a range of cleaning services for commercial office buildings, data centers, educational institutions, government buildings, health facilities, industrial buildings, retail stores, sport event facilities and transportation hubs. Its Facility Services segment provides onsite mechanical engineering and technical services and solutions relating to a range of facilities and infrastructure systems. Its Parking segment provides parking and transportation services. Its Building & Energy Solutions segment provides energy solutions; electrical; heating, ventilation and air conditioning; lighting, and other general maintenance and repair services for clients. Its other segment provides facility solutions to airlines and airports.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
EARNINGS YIELD: NEUTRAL
RETURN ON TANGIBLE CAPITAL: NEUTRAL
FINAL RANKING: PASS
Detailed Analysis of ABM INDUSTRIES, INC.
Full Guru Analysis for ABM
Full Factor Report for ABM
CO-DIAGNOSTICS INC (CODX) is a small-cap value stock in the Medical Equipment & Supplies industry. The rating according to our strategy based on Joel Greenblatt changed from 0% to 100% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Co-Diagnostics, Inc. is a molecular diagnostics company. The Company is engaged in developing, manufacturing and marketing diagnostics technology. Its reagents are used for diagnostic tests that function via the detection and/or analysis of nucleic acid molecules, such as deoxyribonucleic acid and ribonucleic acid. It also sells diagnostic equipment from other manufacturers as self-contained lab systems (MDx device). The Company uses its proprietary test design system and proprietary reagents to design and sell polymerase chain reaction diagnostic tests for diseases and pathogens starting with tests for tuberculosis, a drug resistant tuberculosis test, hepatitis B and C, Malaria, dengue, human immunodeficiency virus and Zika virus, all of which tests have been designed and validated in its laboratory. Its diagnostics systems enable molecular testing for organisms and genetic diseases by automating historically complex procedures in both the development and administration of tests.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
EARNINGS YIELD: NEUTRAL
RETURN ON TANGIBLE CAPITAL: NEUTRAL
FINAL RANKING: PASS
Detailed Analysis of CO-DIAGNOSTICS INC
Full Guru Analysis for CODX
Full Factor Report for CODX
More details on Validea's Joel Greenblatt strategy
Joel Greenblatt Stock Ideas
About Joel Greenblatt: In his 2005 bestseller The Little Book That Beats The Market, hedge fund manager Joel Greenblatt laid out a stunningly simple way to beat the market using two -- and only two -- fundamental variables. The "Magic Formula," as he called it, produced back-tested returns of 30.8 percent per year from 1988 through 2004, more than doubling the S&P 500's 12.4 percent return during that time. Greenblatt also produced exceptional returns as managing partner at Gotham Capital, a New York City-based hedge fund he founded. The firm averaged a remarkable 40 percent annualized return over more than two decades.
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | ABM INDUSTRIES, INC. (ABM) is a mid-cap growth stock in the Business Services industry. Company Description: ABM Industries Incorporated is a provider of integrated facility solutions. Detailed Analysis of ABM INDUSTRIES, INC. Full Guru Analysis for ABM Full Factor Report for ABM CO-DIAGNOSTICS INC (CODX) is a small-cap value stock in the Medical Equipment & Supplies industry. | Detailed Analysis of ABM INDUSTRIES, INC. Full Guru Analysis for ABM Full Factor Report for ABM CO-DIAGNOSTICS INC (CODX) is a small-cap value stock in the Medical Equipment & Supplies industry. ABM INDUSTRIES, INC. (ABM) is a mid-cap growth stock in the Business Services industry. Company Description: ABM Industries Incorporated is a provider of integrated facility solutions. | Detailed Analysis of ABM INDUSTRIES, INC. Full Guru Analysis for ABM Full Factor Report for ABM CO-DIAGNOSTICS INC (CODX) is a small-cap value stock in the Medical Equipment & Supplies industry. ABM INDUSTRIES, INC. (ABM) is a mid-cap growth stock in the Business Services industry. Company Description: ABM Industries Incorporated is a provider of integrated facility solutions. | Company Description: ABM Industries Incorporated is a provider of integrated facility solutions. ABM INDUSTRIES, INC. (ABM) is a mid-cap growth stock in the Business Services industry. Detailed Analysis of ABM INDUSTRIES, INC. Full Guru Analysis for ABM Full Factor Report for ABM CO-DIAGNOSTICS INC (CODX) is a small-cap value stock in the Medical Equipment & Supplies industry. |
29323.0 | 2021-06-09 00:00:00 UTC | ABM Industries Inc (ABM) Q2 2021 Earnings Call Transcript | ABM | https://www.nasdaq.com/articles/abm-industries-inc-abm-q2-2021-earnings-call-transcript-2021-06-09 | nan | nan | Image source: The Motley Fool.
ABM Industries Inc (NYSE: ABM)
Q2 2021 Earnings Call
Jun 9, 2021, 8:30 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Greetings and welcome to the ABM Industries' Second Quarter 2021 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded.
I'd now like to turn the conference over to your host Mr. David Gold, Investor Relations for ABM Industries. Thank you. You may begin.
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David Gold -- Investor Relations
Thank you for joining us this morning. With us today are Scott Salmirs, our President and Chief Executive Officer and Earl Ellis our Executive Vice President and Chief Financial Officer. We issued our press release yesterday afternoon announcing our second quarter fiscal 2021 financial results. A copy of this release and the accompanying slide presentation can be found on our corporate website.
Before we begin, I'd like to remind you that our call and presentation today contain predictions, estimates and other forward-looking statements. Our use of the words estimate, expect, and similar expressions are intended to identify these statements. Statements represent our current judgment of what the future holds.
While we believe them to be reasonable, these statements are subject to risks and uncertainties that could cause our actual results to differ materially. These factors are described in a slide that accompanies our presentation as well as our filings with the SEC.
During the course of this call, certain non-GAAP financial information will be presented. A reconciliation of those numbers to GAAP financial measures is available at the end of the presentation and on the Company's website under the Investor tab.
I would now like to turn the call over to Scott.
Scott Salmirs -- President and Chief Executive Officer
Thanks, David. Good morning and thank you all for joining us today to discuss our second quarter results. As detailed in yesterday's press release, ABM reported strong second quarter financial results, building on the progress we achieved in our first quarter.
Second quarter adjusted income from continuing operations per diluted share increased to $0.82, up nearly 37% from the year ago quarter. We generated significant operating leverage with adjusted EBITDA improving 17% year-over-year to $106.6 million and adjusted EBITDA margin increasing 100 basis points to 7.1% on slightly higher revenues.
We are pleased to note that for the first time in five quarters, growth in four of our key segments, B&I, T&M, Education and Technical Solutions more than offset the softness in Aviation which, while improved on a sequential basis, continue to reflect the impact of the pandemic.
In short, our second quarter performance reflected a consistently high level of operational execution by our team amid gradually improving business conditions, in sync with the reopening of the economy. This strong showing and our current visibility have enabled us to increase our full-year guidance for adjusted earnings per share, while we continue to invest to support future growth.
Consistent with what we have discussed over the past several quarters, our customers continue to prioritize protecting their people and spaces, driving strong demand for our higher-margin virus disinfection work orders. EnhancedClean, our proprietary and trusted protocols for cleaning and disinfecting spaces was an important contributor to our second quarter results as well.
We also continue to benefit from efficient labor management as our flexible labor model enabled us to identify and capitalize on staffing efficiencies arising from the adoption of remote and hybrid work environments, particularly within our B&I segment where office occupancy in large metropolitan areas remain relatively low. As employees transition back to the office, we anticipate some easing in our labor efficiency, but we expect revenue growth in the second half of the year and increased work orders to mitigate that effect.
With our scale, capabilities, end market diversity and breadth of services, ABM remains well positioned for continued revenue and earnings growth as the reopening momentum continues. There are several key trends that support our outlook for continued strong performance in the coming quarters.
First, our clients in both the office and manufacturing markets indicate they plan to continue to incorporate disinfection into their cleaning protocols as they prepare for the return of staff and workers to their offices and industrial facilities.
In fact, given the heightened concerns around pandemic risks and greater awareness of public health issues in general, we expect these specialized services to remain in demand and to become part of our client contracts. ABM has been an essential partner in helping our customers navigate through the challenges of the past year and our 90%-plus retention rate, which ticked up in the second quarter speaks to the confidence our customers have in our services and capabilities.
Second, we expect continued sequential improvement in our Aviation segment, as pent-up demand for travel translates into higher demand for aviation services. As Earl will discuss in his comments, we are transitioning our Aviation business mix to favor higher-margin contracts with airports and adjacent facilities, with less of a focus on airline services. This strategic shift has created attractive growth opportunities for ABM outside of the airport, such as parking services and provides for a more consistent and more profitable business mix in our Aviation segment.
Additionally, we expect to see increased demand for disinfection and cleaning services in line with the pickup in travel activity. Early signs of return to leisure travel have been encouraging and increased business travel is projected to follow later in the year and into next year.
Third, school districts have accelerated the return to in-person learning. Our conversations with school district professionals and educational institutions indicate that with the full-time return to school expected this fall, cleaning and disinfecting will be a priority throughout the school year. We expect these services to become part of the broader scope of services for new contracts and rebids, providing ABM with revenue and growth opportunities.
Finally, the energy efficiency and retrofit solutions that we offer in our Technical Services segment, our highest margin business, provide significant operating cost savings for our customers and enable them to reduce their environmental impact. Now that we have greater access to client sites, we expect to increasingly work through our Technical Services backlog, which was at a record level at the end of the second quarter. Additionally, this segment is well positioned to benefit from the new administration's priorities around decarbonization and energy efficiency.
As we look toward the second half of the fiscal year, we are confident that we can leverage our significant competitive advantages to achieve continued progress. You may recall that at the very outset of the pandemic, we established 19 operational task forces or pods as we call them, to marshal our tremendous internal resources on the issues at hand, to focus on our virus disinfection offerings; our field operations; as well as finance, legal, liquidity, cash flow and human resources.
This task force model proved to be a fast and effective way of identifying potential business issues and utilizing cross-functional expertise to develop and implement solutions. Given the success of these initiatives, we will continue to use this model to address emerging situations. In fact, our human resources task force is now focused on recruiting and retention and will be instrumental in helping us manage utilization as additional staffing is required to accommodate increased occupancy levels.
Additionally, our strong balance sheet and robust cash flow provide us with substantial resources to fund investments to support future growth. We invested in information technology initiatives during the first half of fiscal 2021 and we anticipate investing further during the second half of the year. These investments in technology, data analytics and strategic initiatives are designed to strengthen our client relationships and further empower our employees.
While we will speak about these initiatives later in the year, I can share that we are currently piloting client-facing solutions using sensors to generate real-time occupancy data that inform our janitorial programs and allow us to share service delivery details with our clients via digital displays.
Additionally, we are expanding our use of technology to workforce management with a digital test management solution that records work performed and facilitates dynamic route changes to accommodate shifting client demand.
Lastly, the ABM brand is recognized worldwide, and our recent advertising campaign has served to reinforce the scale, scope and capabilities of our organization. These attributes enabled us to step in immediately to provide our branded services to clients needing a safe environment for their employees and consumers.
The ABM brand is synonymous with this tremendous commitment to customer service, which is supported by our ability to deliver. As we enter a post-pandemic environment, we believe the ABM brand will provide us with considerable competitive advantages across our business segments.
Turning now to the specifics of our outlook. Given our strong performance in the first half and our expectations for continued year-over-year growth in the second half, we are maintaining our guidance for full-year fiscal 2021 GAAP income from continuing operations of $2.85 to $3.10 per diluted share, inclusive of a second quarter litigation reserve of $0.32.
At the same time, we are increasing our guidance for full-year 2021 adjusted income from continuing operations to $3.30 to $3.50 per diluted share, up from $3.00 to $3.25 previously. This includes additional investments in client-facing technology and workforce management. We're also increasing our outlook for adjusted EBITDA margin to a range of 7% to 7.3% from 6.6% to 7% previously.
We also ended the first half with robust new sales of $727 million, including $100 million associated with our EnhancedClean offerings, another first half record. This supports our confidence in the Company's organic second half performance. Additionally, we continue to explore acquisition opportunities where, as a strategic buyer, we would be able to drive meaningful revenue and operating synergies.
Before I turn the call over to Earl, I'd like to thank all of our ABM team members for their continued dedication and hard work. Over the past year, we have made tremendous operational progress and have proven our value as an essential partner to our clients during these dynamic and challenging times.
I've never been more inspired by our purpose, our team and our organization. I also want to thank our customers for their confidence in us. As we emerge from this difficult period, I am so pleased with our performance and are more confident than ever in our future potential.
I'll now turn the call over to Earl.
Earl Ellis -- Executive Vice President and Chief Financial Officer
Thanks, Scott, and good morning, everyone. Second quarter revenue was $1.5 billion, up 0.1% from last year. As Scott mentioned, revenue in four of our segments grew on a year-over-year basis, offsetting the continued pandemic-related softness we've experienced in the Aviation segment. Key revenue growth drivers in the quarter included higher disinfection related work orders and continued strong demand for our EnhancedClean services.
On a GAAP basis, income from continuing operations was $31.1 million or $0.46 per diluted share. By comparison, in last year's second quarter, we reported GAAP income from continuing operations of negative $136.8 million or negative $2.05 per diluted share.
As Scott mentioned, GAAP income from continuing operations in this year's second quarter includes a non-cash $30 million reserve for an ongoing litigation equivalent to $0.32 per diluted share. This non-cash reserve relates to litigation dating back 15 years, primarily relating to a legacy timekeeping system that was phased out in full by 2013. You will find additional information in our Form 10-Q, which will be filed later today.
The recorded reserve is based on a host of factors, considerations and judgments and the ultimate resolution of this matter could be significantly different. As this litigation remains ongoing, we are unable to disclose further information at this time.
As a reminder, last year's GAAP loss included a $2.55 per share impairment charge. Excluding these charges, our adjusted income from continuing operations in the second quarter of fiscal 2021 was $55.5 million, or $0.82 per diluted share compared to $40.4 million or $0.60 per diluted share in the second quarter of last year.
The increase in adjusted income from continuing operations was attributable to our strong operational performance, including growth in our higher margin services as well as efficient labor management and the recapture of bad debt.
In addition, we benefited from favorable business mix, particularly in our Technical Solutions segment where we executed on higher-margin projects. Excluding items impacting comparability, corporate expense for the second quarter increased by $26.6 million year-over-year. Approximately $10 million of the variation was due to increased stock-based compensation, with the remaining $16 million representing investments and other-related expenses. Thus, information technology and other strategic investments spend in the first half of fiscal 2021 was $20 million, in line with our expectations.
Now, turning to our segment results. Business & Industry revenue grew 1.4% year-over-year to $796.2 million, driven largely by strength in demand for higher-margin disinfection related work orders and EnhancedClean services. As a result, operating profit in this segment increased 44.1% to $85.3 million.
Our Technology & Manufacturing segment continue to see upside from demand for COVID-19 related services. Revenue here increased 5.4% year-over-year to $246.3 million, and operating profit margin improved to 10.9%, up from 8.4% last year. We benefit from the recapture of roughly $2 million of bad debt in this year's second quarter. But even adjusting for this, our profit margin still showed improvement. The growth in revenue and margin was fueled by a higher level of work orders and new customer contract wins for our services.
Education revenue grew 7% year-over-year to $214.2 million, representing the strongest growth rate among our segments in the second quarter. The acceleration in revenue growth primarily reflected the positive impact from the reopening of schools and other educational facilities in the second quarter and the shift toward more in-person learning.
Education operating profit totaled $13.6 million, representing a margin of 6.3%, slightly down year-over-year on an operating [Phonetic] basis as a result of labor challenges in our Southern U.S. operations.
Bad debt expense was roughly $1 million lower than last year, and this was a contributing factor to the operating profit improvement we experienced in this segment. Although the specific labor costs I mentioned will not recur in the third quarter, we anticipate that the return of students to school on a full-time basis will lead to some reduction in labor efficiency within this segment in the second half.
Aviation revenue declined 19.7% in the second quarter to $148.3 million. Although reduced global travel continues to weigh on this segment, revenue improved 3.6% on a sequential basis, marking the third consecutive quarter that Aviation segment revenue has improved sequentially. With industry data points indicating a progressive recovery in global travel, we are optimistic that revenue in our Aviation segment will continue to improve over the second half of fiscal 2021.
Aviation operating profit was $5.8 million, representing a margin of 3.9%. While our airline customers continue to request higher margin enhanced cleaning services such as electrostatic spraying, margin remain below normalized levels given reduced volumes.
As Scott mentioned, we are focused on securing more profitable overall business with airports and related facilities and have continued to de-emphasize our airline services work. This strategic shift in our Aviation segment business mix had a positive revenue and margin impact on our second quarter results and should benefit future periods as well.
Technical Solutions revenue increased 2.6% year-over-year to $125.5 million. Operating margin was 8.2% in the second quarter, up significantly from 5.3% in the first quarter of fiscal 2021 due to a favorable mix of higher-margin projects. As client site access improves, we remain positive on the growth trajectory of the Technical Solutions segment.
Shifting now to our cash and liquidity. We ended the second quarter with $435.7 million in cash and cash equivalents compared to $394.2 million at the end of fiscal 2020. With total debt of $797.9 million as of April 30th, 2021, our total debt to pro forma adjusted EBITDA, including standby letters of credit, was 1.7 times for the second quarter of fiscal 2021.
Second quarter operating cash flow from continuing operations was $125.9 million, down from $162.3 million in the same period last year. The decline in cash flow from continuing operations during the second quarter was primarily due to the timing of cash taxes.
For the six month period ending April 30th, 2021, operating cash flow from continuing operations totaled $171.2 million. Free cash flow from continuing operations was $117 million in the second quarter of fiscal 2021 and $156 million for this year's first half. As a reminder, cash flow is benefiting from payroll tax deferral related to the CARES Act. Beginning next year, the deferral will be paid at $66 million in each of the next two years.
We were pleased to pay our 220th consecutive quarterly dividend of $0.19 per common share during the second quarter, returning an additional $12.7 million to our shareholders. Our Board also declared our 221st consecutive quarterly dividend, which will be payable in August to shareholders of record on July 1st.
Supported by the strength of our balance sheet, we have the financial resources to support our capital allocation priority of adding additional growth by investing organically while pursuing potential acquisitions.
Now, I'll provide some additional color on our guidance and outlook. As mentioned, our increased guidance for full year fiscal 2021 adjusted income from continuing operations is now a range of $3.30 to $3.50 per diluted share compared to $3.00 to $3.25 previously.
Our upward revised adjusted earnings forecast reflects the strength of our first half as well as our positive view for the second half. As a reminder, our third quarter has one fewer day than last year, equivalent to about $6 million and reduced labor expense.
On a GAAP basis, we continue to expect EPS from continuing operations of $2.85 to $3.10, inclusive of the $0.32 litigation reserve in the second quarter. We continue to expect a 30% tax rate for fiscal 2021, excluding discrete items such as the Work Opportunity Tax Credits and the tax impact of stock-based compensation awards.
As we noted in our first quarter conference call in March, our expectation was to achieve cash flow above our historical range of $175 million to $200 million for fiscal 2021. Now having generated $171 million of operating cash flow in the first half alone, we are confident that we will achieve free cash flow for fiscal 2021 of $215 million to $240 million.
We are pleased with our positioning, as business across the country emerge from the pandemic and we look forward to helping our clients provide safe environment for their employees and customers. And I am personally looking forward to meeting with each of you in person, hopefully as soon as later this year and to connecting with you virtually until then.
Operator, we are now ready for questions.
Questions and Answers:
Operator
Thank you. At this time, we'll be conducting a question-and-answer session. [Operator Instructions] Our first question comes from the line of Tim Mulrooney with William Blair. Please proceed with your question.
Tim Mulrooney -- William Blair -- Analyst
Good morning, Scott. Good morning, Earl.
Scott Salmirs -- President and Chief Executive Officer
Good morning.
Earl Ellis -- Executive Vice President and Chief Financial Officer
Good morning.
Tim Mulrooney -- William Blair -- Analyst
Thank you guys for taking my questions. So, a couple of questions on labor; first labor cost and then labor availability. On the labor cost side, last quarter you said that you anticipated retaining most of your labor arbitrage through year-end. That is a big part of your margin expansion coming from labor savings. But here we are a couple of months later and inflation is on the rise and on the forefront of everyone's mind, do you think the piece of your margin expansion that came from labor savings over the last 12 months, is it your expectation that eventually gets inflated away in the coming periods?
Scott Salmirs -- President and Chief Executive Officer
Yeah, that's a good question. So, I mean the answer is yes and we've consistently said that. But I think it's important, Tim, to level set this. And just as a reminder, you know 50% of our revenues come from unionized labor, which is above market wage and having benefits. So, we never really see pressure there. So it's really on the other 50%. So, we have mitigation right there.
And for us, as we think about labor and what we're doing, we put together a pod for this just like we did during COVID when we talked about how we created these task forces. So, we have kind of a multi-discipline task force just focused on recruiting and labor efficiencies right now. And we're hyper targeting certain areas because not every area is built the same, right? There are places like Orlando and Dallas and Houston, which have a little bit more pressure than other areas. And again, we're only really mostly focused on the non-union areas.
So, I think it's something that's top of mind for us, but I always point people back to 2018 and 2019 when there were labor pressures as well and how we navigated there. And it is what we do, right? So eventually, we will see some of the efficiencies trail off, which is what we said because people will return to work and we'll be restaffing the buildings. But we are going to maintain some of those savings because of efficiencies of restaffing. So, we feel good about that.
And then, the last thing I'll say about the labor pressures is, we do ultimately get this back from our customers. It's not exactly elastic, but we pass through and we've shown in '18 and '19 that as labor costs rise, we're really good at recapturing those from customers because they get it, because they're facing the same thing. So it's not anything that's kind of just segmented to our industry. So again, top of mind, but we feel like we got this.
Tim Mulrooney -- William Blair -- Analyst
Okay. That's very reassuring. Thanks Scott. Any of the investments that you've made recently, is there anything there that would help you pass on this cost in a different way, new capabilities that you have -- that you hadn't had before? Or is that not really related to this piece of the business?
Scott Salmirs -- President and Chief Executive Officer
It's not necessarily related to this piece of business. But I will tell you, the first tranche of our technology path was a couple of years ago when we upgraded our HR system and went to the cloud and got a -- again, much better capability.
So it helps us have insight and information that we never had a couple of years ago. And in this kind of labor game, the key is having information, knowing where the pressure points are, knowing how to articulate and dynamically staff. So, I'd say the newer investments are not necessarily exactly related to labor because, fortunately, we got ahead of that fortuitously.
Tim Mulrooney -- William Blair -- Analyst
Understood. If I could just squeeze one more in. I wanted to ask about labor availability. I mean you guys had 114,000 employees toward the year end. And I know this was down from 2019, but still more employees than pretty much every other company on my coverage list. So my question here is not about labor cost, it's about labor availability. Most companies I talk to list labor availability as the prevailing issue right now even more so than inflation. So, is labor availability a major issue for you right now? And if so, has this affected service levels in any material way?
Scott Salmirs -- President and Chief Executive Officer
Yeah. So -- funny, I would say, probably for our 112-year history, labor availability is always top of mind, right, because of what we do, alright. But what I would say is this, I'd say it's still little early in the game, right? There was a federal stimulus out there of $300 a week, which we all know about, over and above unemployment.
And you do the math on that, you think about a $15,000 a year bump for people who are on unemployment. So that's something that keeps people at home and we're starting to see some of the states roll it off starting this month. And in September, the federal program rolls off.
So, I think it's a little early to see about what the labor availability will be in the fall when people return to work because that's when we'll really going to need it. But we don't have this massive need right now because, generally speaking, Tim, right now it's still very muted occupancy in office buildings, right, and travel, still only about 60% of where it was.
So, I think we'll have more to say on other companies. We're going to have more to say after the federal stimulus wears off and how many people reenter the workforce. So for now, we're navigating it well. But again, we'll acknowledge it's definitely at muted levels right now of lead, right? So, I think September is going to be the time where everybody is going to really understand what the availability pressures are. But I think anything before that is just speculation in our mind.
Tim Mulrooney -- William Blair -- Analyst
Okay.
Scott Salmirs -- President and Chief Executive Officer
Is that helpful? Does that make sense?
Tim Mulrooney -- William Blair -- Analyst
Yeah. That's very helpful. Understood. Thanks for taking my questions.
Scott Salmirs -- President and Chief Executive Officer
You bet, Tim.
Operator
Thank you. Our next question comes from the line of Sean Eastman with KeyBanc Capital Markets. Please proceed with your question.
Sean Eastman -- Keybanc Capital Markets -- Analyst
Hi, guys. Thanks for taking my questions and nice job, again, this quarter.
Scott Salmirs -- President and Chief Executive Officer
Thank you.
Sean Eastman -- Keybanc Capital Markets -- Analyst
I guess just going back to the margin discussion, the different moving parts there. I mean, we have an updated second half outlook, but it seems like the dynamic in the business doesn't really change too too much until the fall, September, October. So it's kind of right at the end of the fiscal year. I'm just wondering how much we can extrapolate from the second half about the updated margin guidance as we think about what's sustainable going into next year.
I mean, I could just go round and round in circles around the different moving parts between labor efficiencies and how these IT investments trend, ATS coming back and being a growth driver again. I mean, is this implied second-half run rate sustainable? What are the big moving parts we really need to consider in our models going into next year relative to that run rate?
Scott Salmirs -- President and Chief Executive Officer
Sure. So let's -- and obviously, we're not ready to guide yet for '22. So, I mean I have limited to say about that. But I could tell you, look, we feel super confident about the second half of this fiscal year for us. That's why we were able to raise guidance. And a lot of that honestly, Sean, has to do with having better line of sight. We've been really consistent about the fact that we want to be responsible and until we have line of sight, we're not going to get over our skis, right?
So, I think we have -- at this point in time, we feel like we have really good line of sight to the rest of this year and the dynamics looked really good. Between EnhancedClean and our work orders in the second half, they maintained at the levels of the first half. And we feel like it's going to be strong for the rest of this year. We believe there is going to be a return to work. Is it going to be a 100% of office occupancy? Absolutely not.
But we're probably seeing somewhere around 25% average across the country and probably more in the range of 40% in the Southern states and 16% on the Coast. So, we think that's going to tick up and return to work is going to be more revenues for us. It's going to be more disinfection services. We'll give a little bit of that back from the labor efficiencies because we'll have to restaff the buildings, but that's really a positive trend for us.
And the last thing and you mentioned is, Technical Solutions, we have a backlog of over $250 million in business, our strongest ever and more importantly, our churn rate is up. We -- typically, our churn rates for the second quarter was somewhere in the range of 12%. But sequentially, through the quarter got stronger and stronger and so we're excited about that to actually churn to work.
So, I think you're going to see -- you're going to see revenues go up in the second half. You're going to see disinfection strong. You'll see, again, the mitigation on the labor side, but you're also going to see ATS churn up as well. So, I think we feel really good about that and we'll see where it goes into '22 as we get closer to that.
And again, November 1st starts our '22, and I think that's still going to be at the time where people are returning to work. And so, I think we'll have a good start to '22 as well, but again, it's early to start guiding. Does that makes sense?
Sean Eastman -- Keybanc Capital Markets -- Analyst
Yeah. Yeah, it does. Okay. And obviously, the balance sheet is primed for some capital deployment here. Seems like you kind of stepped up your M&A commentary a little bit and your communications here this quarter. I mean, could you just talk -- speak to the velocity in the acquisition pipeline? I'm hearing from a lot of companies that sort of tell you the decision making is really accelerating here?
Scott Salmirs -- President and Chief Executive Officer
Yeah. So there is definitely more activity. And remember, for us, we were pretty consistent last year that until we get through this pandemic, until we feel like there is stabilized liquidity and what have you, we won't going start thinking about it. So, we've only been in the game for a very short period of time, but we have our teams out there. There is activity.
We'd like to think there is going to be opportunity for us. And the nice thing for us as -- and you -- I'm not going to tell you anything you haven't heard about private equity and having access to capital. But the nice thing for us is that we as a strategic buyer have synergies, both operating and revenue that helps make us competitive if there is an attractive asset out there. So it's definitely a priority for us, M&A, because growth is so important. So, we're excited about what we're starting to see.
Sean Eastman -- Keybanc Capital Markets -- Analyst
Okay. Excellent. I'll turn it over there. Thanks so much, Scott.
Scott Salmirs -- President and Chief Executive Officer
Thanks, Sean.
Operator
Thank you. Our next question comes from the line of Andy Wittmann with Robert W. Baird. Please proceed with your question.
Andrew Wittmann -- Robert W. Baird & Co., Inc. -- Analyst
Great. Good morning and thanks for taking my question. Scott, in your prepared remarks, you mentioned that your B&I customers and some of your manufacturing customers, they're going to keep cleaning. Do you think that some of the enhanced cleaning services might become part of the contract? And so I just want to understand that mechanism a little bit more.
Do you expect that those will be negotiated contracts? Or as they look to increase the size, do you think, generally speaking, that your customers, as they look to increase the amount of cleaning that they do, that they got to rebid with that? And what do you think, as these things become part of the base contract and less tag worker or work order work? What, if any, implications are there to the margins? What are your thoughts on that one?
Scott Salmirs -- President and Chief Executive Officer
Yeah, that's a great question. And I think -- you know what Andy, I think we've been really consistent for the past few quarters saying that the natural gravitation of this work will be to be embedded in scope because I mean, look, I was a former facility manager. That's what I would do, right?
And so, I think as clients start thinking about retendering contracts, which will probably happen over the next year or two, I do see them incorporating in. It's a smart thing to do. And I think we've talked about 30% margins on this work. We'll see that trail down a little bit. I don't know where it will end up landing. Will it land at 20%? Will it land at 25%?
But the reality is for us, there is -- it's a higher value service and you can build in a higher margin for a higher value service. There is training. There is equipment. There is all these protocols. So, I think we'll be able to retain a good amount of the margin. But absolutely, the expectation is that it will gravitate into the base contracts for the bigger clients. For the smaller tenants, I think it's still going to be kind of on a work order basis, which would make sense for them as well.
Andrew Wittmann -- Robert W. Baird & Co., Inc. -- Analyst
That makes sense. But as we sit here today in June, are you seeing those kinds of discussions happening or this is just still -- I mean, you've been saying this for a while, like you just said there, but are you seeing anything today that -- toward this trend here in June?
Scott Salmirs -- President and Chief Executive Officer
Not yet. You know why? Because people aren't really focused on rebidding contracts right now, right. I think if you think of the life of a facility manager right now, what's top of mind for them is preparing for return to work for all their workers, right. So they are looking at reoccupancy programs. They are looking at space planning for their offices, all the health and safety stuff.
Rebidding a janitorial contract is a pretty big deal and it takes a lot of focus and effort. So, my sense is that kind of thing is going to happen probably '22, '23 versus the back half of this year because we just haven't heard about any plans yet on scale to get in the market and rebid.
And I think the other part of it, the insight I have, Andy, and maybe this is helpful is, when you don't know -- when you are a facility manager and you don't know what's your ultimate occupancy is going to be or floor layout, you're getting ahead of yourself by bidding the contract because you can't really drill down on a good scope yet, because you just don't know how it's all going to land.
So kind of -- if I were in their shoes, I would think it's premature right now to start putting together a formal scoping for what the new ways of work look like because people haven't really returned yet. Does that make sense?
Andrew Wittmann -- Robert W. Baird & Co., Inc. -- Analyst
Yeah, it makes a lot of sense. And just on Technical Solutions here, you guys put in electric vehicle charging stations, you retrofit schools with all kinds of different systems. Both of these things are talked about as having -- actually, some of these have passed the $1.9 trillion thing had money directly for schools.
I'm wondering, I wouldn't expect that it's in the backlog yet, but are you bidding projects that you can kind of tie to these moneys that have been allocated already? You mentioned the record backlog, I'm just kind of curious as to -- if that's kind of before the stimulus here or after the stimulus and any comments that you have on that in particular?
Scott Salmirs -- President and Chief Executive Officer
Yeah. I think the good news is we haven't seen yet the direct effect of that because a lot of these programs haven't been formalized. But I can tell you that this kind of bundling of solutions and our energies, we call it BES, which is Bundled Energy Solutions, which is this project retrofit work. We're seeing a lot of activity on that because there are still other government programs out there and any of the school districts can raise capital, where they're getting the pressure is on their operating margin still.
So, we're just seeing an increase on pipeline side of clients, who were talking about ways to lower operating expenses and that plays right into the strength of what we do with our -- again, our bundled energy solution. And then you take on top of that, the administration's new focus with decarbonization and e-mobility.
Our easy charging is probably -- it's still a relatively small segment for us, but it's probably our fastest growing. And it's really turning into something that we're putting a lot of focus on. So, we think everything that's going on societally and with the administration is going to be a big tailwind for us in '22 and '23.
Andrew Wittmann -- Robert W. Baird & Co., Inc. -- Analyst
Okay. That's helpful. And then just last question quickly here for Earl. I wanted to talk about the unallocated corporate expense segment results. I mean, you guys -- you mentioned in the prepared remarks that your kind of $20 million of investments this year over last year, that's on track. You guys have been saying it's going to be $40 million for the year. Seems like that's kind of where you are on those investments.
But Earl, just wanted to make sure that for all of our models here that we're getting this right. [Indecipherable] last year's corporate and unallocated expense segment is going to be plus $40 million on these investments. But I also think that there is -- because the year is where it is, you mentioned in the press release even that the stock compensation is going to be up in addition to that.
So, I was just wondering if you just could help us a little bit as to how much the stock comp is up year-over-year as well, just so that we can kind of get a sense of what that line is. And then, obviously, the implications -- will it be rolled back into the implications for the operating segment margins as well? Just be kind of helpful to understand how you're thinking about that unallocated segment line?
Earl Ellis -- Executive Vice President and Chief Financial Officer
Sure, Andy, would love to do that. So just to start with, as we mentioned last quarter, we're continuing to invest in both our talent to support our future growth opportunities as well as the planning and design phase of our tech solutions rollout -- for the rollout of our tech transformation. And as we mentioned, that investment year-over-year is approximately a $40 million increase.
And when we look at the year-to-date, we've actually spent $20 million of that. Although if you recall in Q1, it was actually a little bit of a late start and that we actually spent probably about $3 million to $5 million of that, but caught up in the second quarter.
As we look to the back half of the year that $10 million clip we'll continue to spend over Q3 and Q4. Now having said that, however, when you look at it from a year-over-year perspective, it might look a little lumpy, in that if you look at Q3, you have to recall last year where we actually had the benefit of the furlough, you'll actually see as a result of that a tick up.
And then, when you look to Q4, although we'll still be spending that $10 million, that spending actually started last year in Q4. And therefore, Q4 year-over-year will look kind of flattish, but we are still on track with the $40 million spend for this year.
In addition to that, we are seeing an increase in our share-based compensation and that's to the tune of approximately $15 million year-over-year. And that's a product of a number of things, including special grants that came up last year, as well as just how we're actually tracking on the grants that will actually come to vesting this year.
Again, you're going to see some lumpiness in that that year-over-year increase, you'll see the vast majority of that impacting in this past quarter, Q2 year-over-year as last year we took a significant reduction in our reserve, as we were anticipating the impacts of the pandemic. We then started to ramp up that investment last year, that accruals last year. So as you look at the back half of this year, we anticipate more a smoothing year-over-year with regards to share-based compensation.
Andrew Wittmann -- Robert W. Baird & Co., Inc. -- Analyst
All right. That's very helpful. Thank you very much. Have a great day, guys.
Earl Ellis -- Executive Vice President and Chief Financial Officer
Thank you.
Scott Salmirs -- President and Chief Executive Officer
Thank you.
Operator
Thank you. Our next question comes from the line of David Silver with CL King & Associates. Please proceed with your question.
David Silver -- CL King & Associates, Inc. -- Analyst
Yeah. Hi, good morning. So, maybe if I could just ask Earl to follow up a tiny bit on the stock-based comp discussion that you just finished. Always a number of moving parts in these programs, but for our understanding purposes going forward, should we be tracking, let's say, the closing -- the point-to-point change in your share price. In other words, January 31 to April 30 led to the bulk of that expense this quarter or is it more of an accrual with time or an average share price? In other words, might there be a couple of rules of thumb you could share that might give us a little bit of a heads up going forwards to kind of adjust our expectations for that expense item? Thank you.
Earl Ellis -- Executive Vice President and Chief Financial Officer
Sure. Well, when you look at our share-based compensation, for the most part, there are a number of metrics, but the large percentage is really -- metric is really weighted on our financial performance. And that would be both revenue as well as our EBITDA. So one of the things that you can clearly track is how we're actually progressing on those two metrics.
And it's clear to say, especially, this year with regards to our EBITDA and our earnings that again, have been driven by the margin expansion; that really is the significant benefactor, if you will, to the increased accrual that we're actually seeing in the stock compensation plan.
David Silver -- CL King & Associates, Inc. -- Analyst
Okay, thank you for that. And then, Scott, I had a question about the project reserve that your company took couple of quarters ago. So, I think it was $18 million pre-tax. But my understanding was that was kind of tied to the inability of your customer to kind of open or begin operations.
With the -- I was just wondering if you could give us an update there on whether you think the current pace of, let's say, the reopening of workplaces and social venues and things? I mean, should we be thinking that, that reserve might be reversed in coming quarters? And what's your -- maybe just an update on that issue, please.
Scott Salmirs -- President and Chief Executive Officer
Yes. So, look, I'm an eternal optimist, right. So -- but I will tell you, David, like we're in active discussions and it's something it's really difficult to comment on because we are still -- it's still ongoing. So, just like any other kind of reserve we take, we don't give up and we go after it. And so I think, suffice to say, active conversations and more to come on that.
David Silver -- CL King & Associates, Inc. -- Analyst
Okay. And then, maybe just one more kind of bigger picture question. And this would have to do with branding, I guess, or your marketing strategies and your marketing programs to-date. So, you've mentioned in the past you have ramped up marketing efforts on a number of platforms and I've seen your national commercial on CNBC quite a bit. And two things. I mean, first, I was just wondering if you could point to any tangible results in particular, product lines or sub-sectors that where you think the greater awareness, the greater visibility has made a difference?
And then secondly, maybe just a longer-term perspective. In other words, your company has been in business for over a century. You already have a national footprint and yet you kind of have redoubled your marketing efforts here. Maybe if you could just point to, maybe from a one or two-year perspective. I mean, where do you think that that greater awareness, the branding efforts are going to have the biggest effect?
In other words, might it encourage people who had been using maybe a regional player or a mom and a pop to step up to a higher level of service that they associate with your name now or maybe regionally areas where you hadn't been as -- that you're looking to penetrate? Maybe that's a necessary pre-condition for success there? So, just overall branding success to-date and then where do you think -- where should we look for the greatest impact over the next year or two? Thank you.
Scott Salmirs -- President and Chief Executive Officer
Sure. Yeah. So look, I think, especially with what we're doing with the commercial, brand is so important. And what you're trying to do is create differentiation in the market. And you hit on it, right. There is like kind of ABM and then there is regionalized competitors and what we are attempting to do and I think the pandemic has done it is, really, say, like there is kind of us and our resources and our scale and there is everybody else.
And the way that that manifested itself is on our supply chain. We were never the ones that were without disinfectant or PPE for our people, electrostatic sprayers because of, again, our sourcing capability. And not every client that had a regional player can say that they fared as well. And then we had an advisory council that we put together of outside experts to synthesize what the CDC and the World Health Organization was saying, so our clients could get a better lens on that.
All these things, the small regional players couldn't do. And then you put on top of that commercials on CNBC, it's like -- it's just creating a choice differential that we think is going to be super impactful. Hopefully, that's going to have an impact on our retention over the next couple of years. We've been over 90%, a 1 percentage point tick up in retention is dramatic in our business. So, we're hoping that.
We've seen, last time I checked, and my information is a few weeks old, but I think it was something around a 10% increase in hits on our website. And our sales team is seeing tracking coming through digitally. So, I think it's a confluence of things, David, but again, it's elevating the brand between how we performed and the exposure now that we're doing on TV and through all the social channels. It's just -- it's going to -- all we're trying to do at ABM is create the separation between our platform and our small regional competitors.
David Silver -- CL King & Associates, Inc. -- Analyst
Okay, great. Thank you very much.
Scott Salmirs -- President and Chief Executive Officer
Thank you.
Operator
Thank you. [Operator Instructions] Our next question comes from the line of Marc Riddick with Sidoti & Company. Please proceed with your question.
Marc Riddick -- Sidoti & Co. -- Analyst
Good morning.
Scott Salmirs -- President and Chief Executive Officer
Good morning.
Earl Ellis -- Executive Vice President and Chief Financial Officer
Good morning.
Marc Riddick -- Sidoti & Co. -- Analyst
So, I wanted to just sort of fill in a few of the blanks that we've had from some of the other questions which were already answered. I wanted to start first with going back to the acquisition commentary in the press release and what you've talked about a little bit more recently. Just wanted to touch a little bit on whether or not there is any particular areas that you would view as priorities or things that are kind of top of the list that you'd like to see accomplish, whether it'd be a regional selling or a service line area. How should we think about your prioritization of potential acquisitions?
Scott Salmirs -- President and Chief Executive Officer
Sure. So, look, I think for us, we're very intent on sticking to our core, right? And the core of what we do is janitorial stationing, engineering, right? And that with the pandemic and what's happened through all virus protection and our credibility there, we think that's a great accelerator for us. So, we will look for scale there. And you know how much we love the ATS work, right? It's our fastest growing and most profitable segment. So, we have a high interest in growing that platform too.
So you know what Marc, I think before we start looking for adjacencies outside of the core of what we do, we're really going to stick within the core and scale is always better, right? Integrating a small company is as much work as integrating a big company. So, I think we're going to synthesize those. And then there are certain regions even with our -- with our ATS work, there are certain regions that we'd like to fill in, where we're maybe not as strong as others.
So, there'll be a little bit of a geographic dent when it comes to ATS. So, we have a really good metrics of what we're looking for. And what we said for the past few years is what I'd say now, we are not going to be reactive. We're going to be strategic and planful on how we go after acquisitions.
Marc Riddick -- Sidoti & Co. -- Analyst
Great. And then, I wanted to switch back to talking about some of the segment actively seen during the quarter because one of things that was interesting to me was the strongest segment growth was in Education. It seems as though of all the areas of your work, that seem to have been the biggest beneficiary of the strength of the rollout of vaccines and what have you.
I was wondering if you can talk a little bit more about some of the conversations that you're having within the education space and maybe some of the commentary there or maybe what you're seeing from the benefits of funding that kind of gives you -- it seems as though it gives you greater confidence for the upcoming school year.
But certainly, the vaccines seems to have accelerated activity at the very end of this school year. But it also seems to maybe have accelerated the timing of some of those conversations. So, just wondering if you can talk a little bit more about that?
Scott Salmirs -- President and Chief Executive Officer
Yeah. That's a good question. From the educators, we've been talking to within our client base and stuff we hear in the industry, it seems to be this very binary shift toward in-person learning and the whole remote when it comes to the fall, right? So that's really the next -- really piece of the puzzle right now that school is generally out right now. We're talking about in-person, which is great from a revenue standpoint for us.
Again, we'll give some of it back on the labor efficiency. But all the educators we talk to, healthy, clean, safe buildings is top of mind. And it's for them and the parents, right? Parents are very vocal about this. So, we're excited about the potential in education because we suspect, if you look at our different segments, right, our technology and manufacturing, which is really focused as much on manufacturing side, they never stop and our revenues always remained strong.
And then you had our B&I, which is office occupancy reduction, right. I think Aviation is one that's going to lag probably more than any other segment. But Education, I think it's going to have a strong come back in the fall, whereas when you look at B&I, I don't think anyone thinks that offices are going to be a 100% occupied in the fall, whereas it could be close to that for Education. So, I think you're going to see a pretty strong rebound.
Marc Riddick -- Sidoti & Co. -- Analyst
Right. Right. And then the last thing for me, totally different area, but I was wondering if you can give updated thoughts around -- given the strength of free cash flow generation, debt reduction was substantial than we were expecting. Certainly, nice to see there. Wanted to talk a little bit about views of future share repurchase and how we should think about, sort of given the strength of the business versus where your stock price is now, kind of how your thoughts are evolving there? Thanks.
Earl Ellis -- Executive Vice President and Chief Financial Officer
Yeah, it's Earl, Marc. Thanks for the questions. I would say that we're really pleased with the amount of cash that we're currently sitting on as well as our low leverage, which really gives us the opportunity now really to deploy that capital for the purposes of supporting our long-term growth strategy. And as such, we are going to be looking to invest in both organic as well as inorganic growth.
Now having said that, we're going to remain our flexibility with regards to capital allocation. As you know, we currently have authorization upwards of about $145 million from the Board to actually pursue share buybacks. So, we'll keep that flexibility as time proceeds. But at this point in time, the focus really is around allocating capital for growth purposes for long-term growth, Marc.
Marc Riddick -- Sidoti & Co. -- Analyst
Thank you very much.
Scott Salmirs -- President and Chief Executive Officer
Thank you, Marc.
Operator
Thank you. Ladies and gentlemen, this concludes our question-and-answer session. I'll turn the floor back to Mr. Salmirs for any final comments.
Scott Salmirs -- President and Chief Executive Officer
Yeah. I just want to take a moment to thank everyone for supporting us through this period. So proud of what our team members have done and appreciate the interest from our investor base and analysts based on what we're doing.
And you can tell that there is a strong level of enthusiasm about the future for ABM between the brand elevation, between our margin elevation and about societal reflections on virus protection going forward. We think we're just in a super good spot to continue to invest in and accelerate the platform.
And the most important thing is just, we're not out of this yet and I would just urge everybody to not let their guard down and stay safe through this. And we have good things coming. So, thank you all for the time today. Really appreciate it.
Operator
[Operator Closing Remarks]
Duration: 60 minutes
Call participants:
David Gold -- Investor Relations
Scott Salmirs -- President and Chief Executive Officer
Earl Ellis -- Executive Vice President and Chief Financial Officer
Tim Mulrooney -- William Blair -- Analyst
Sean Eastman -- Keybanc Capital Markets -- Analyst
Andrew Wittmann -- Robert W. Baird & Co., Inc. -- Analyst
David Silver -- CL King & Associates, Inc. -- Analyst
Marc Riddick -- Sidoti & Co. -- Analyst
More ABM analysis
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | ABM Industries Inc (NYSE: ABM) Q2 2021 Earnings Call Jun 9, 2021, 8:30 a.m. ET Contents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks: Operator Greetings and welcome to the ABM Industries' Second Quarter 2021 Earnings Call. I'd now like to turn the conference over to your host Mr. David Gold, Investor Relations for ABM Industries. | Operator [Operator Closing Remarks] Duration: 60 minutes Call participants: David Gold -- Investor Relations Scott Salmirs -- President and Chief Executive Officer Earl Ellis -- Executive Vice President and Chief Financial Officer Tim Mulrooney -- William Blair -- Analyst Sean Eastman -- Keybanc Capital Markets -- Analyst Andrew Wittmann -- Robert W. Baird & Co., Inc. -- Analyst David Silver -- CL King & Associates, Inc. -- Analyst Marc Riddick -- Sidoti & Co. -- Analyst More ABM analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. ABM Industries Inc (NYSE: ABM) Q2 2021 Earnings Call Jun 9, 2021, 8:30 a.m. ET Contents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks: Operator Greetings and welcome to the ABM Industries' Second Quarter 2021 Earnings Call. | Operator [Operator Closing Remarks] Duration: 60 minutes Call participants: David Gold -- Investor Relations Scott Salmirs -- President and Chief Executive Officer Earl Ellis -- Executive Vice President and Chief Financial Officer Tim Mulrooney -- William Blair -- Analyst Sean Eastman -- Keybanc Capital Markets -- Analyst Andrew Wittmann -- Robert W. Baird & Co., Inc. -- Analyst David Silver -- CL King & Associates, Inc. -- Analyst Marc Riddick -- Sidoti & Co. -- Analyst More ABM analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. ABM Industries Inc (NYSE: ABM) Q2 2021 Earnings Call Jun 9, 2021, 8:30 a.m. ET Contents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks: Operator Greetings and welcome to the ABM Industries' Second Quarter 2021 Earnings Call. | Operator [Operator Closing Remarks] Duration: 60 minutes Call participants: David Gold -- Investor Relations Scott Salmirs -- President and Chief Executive Officer Earl Ellis -- Executive Vice President and Chief Financial Officer Tim Mulrooney -- William Blair -- Analyst Sean Eastman -- Keybanc Capital Markets -- Analyst Andrew Wittmann -- Robert W. Baird & Co., Inc. -- Analyst David Silver -- CL King & Associates, Inc. -- Analyst Marc Riddick -- Sidoti & Co. -- Analyst More ABM analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. ABM Industries Inc (NYSE: ABM) Q2 2021 Earnings Call Jun 9, 2021, 8:30 a.m. ET Contents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks: Operator Greetings and welcome to the ABM Industries' Second Quarter 2021 Earnings Call. |
29324.0 | 2021-05-27 00:00:00 UTC | 5 Dividend Growth Stocks With Upside To Analyst Targets | ABM | https://www.nasdaq.com/articles/5-dividend-growth-stocks-with-upside-to-analyst-targets-2021-05-27 | nan | nan | To become a "Dividend Aristocrat," a dividend paying company must accomplish an incredible feat: consistently increase shareholder dividends every year for at least 20 consecutive years. Companies with this kind of track record tend to attract a lot of investor attention — and furthermore, "tracking" funds that follow the Dividend Aristocrats Index must own them. With all of this demand for shares, dividend growth stocks can sometimes become "fully priced," where there isn't much upside to analyst targets.
But we here at ETF Channel have looked through the underlying holdings of the SPDR S&P Dividend ETF (which tracks the S&P High Yield Dividend Aristocrats Index), and found these five dividend growth stocks that actually still have fairly substantial upside to the average analyst target price 12 months out. Which means, if the analysts are correct, these are five dividend growth stocks that could produce capital gains in addition to their growing dividend payments.
In the first table below, we present the five stocks. The recent share price, average analyst 12-month target price, and percentage upside to reach the analyst target are presented.
STOCK RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET
Telephone & Data Systems Inc (Symbol: TDS) $25.31 $31.38 23.96%
ABM Industries, Inc. (Symbol: ABM) $49.74 $58.33 17.28%
Black Hills Corporation (Symbol: BKH) $65.65 $75.20 14.55%
Abbott Laboratories (Symbol: ABT) $116.75 $132.50 13.49%
SEI Investments Co (Symbol: SEIC) $62.92 $71.00 12.84%
The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. To ballpark that total return potential, we have added the current yield to the analyst target price upside, in order to arrive at the 12-month total return potential:
STOCK DIVIDEND YIELD % UPSIDE TO ANALYST TARGET IMPLIED TOTAL RETURN POTENTIAL
Telephone & Data Systems Inc (Symbol: TDS) 2.77% 23.96% 26.73%
ABM Industries, Inc. (Symbol: ABM) 1.53% 17.28% 18.81%
Black Hills Corporation (Symbol: BKH) 3.44% 14.55% 17.99%
Abbott Laboratories (Symbol: ABT) 1.54% 13.49% 15.03%
SEI Investments Co (Symbol: SEIC) 1.18% 12.84% 14.02%
Another consideration with dividend growth stocks is just how much the dividend is growing. We looked up the trailing twelve months worth of dividends shareholders of each of the above five companies have collected, and then also looked up the same number for the prior trailing twelve months. This gives us a rough yardstick to see how much the dividend has grown, from one trailing twelve month period to another.
STOCK PRIOR TTM DIVIDEND TTM DIVIDEND % GROWTH
Telephone & Data Systems Inc (Symbol: TDS) $0.665 $0.685 3.01%
ABM Industries, Inc. (Symbol: ABM) $0.73 $0.75 2.74%
Black Hills Corporation (Symbol: BKH) $2.11 $2.23 5.69%
Abbott Laboratories (Symbol: ABT) $1.36 $1.62 19.12%
SEI Investments Co (Symbol: SEIC) $0.68 $0.72 5.88%
These five stocks are part of our full Dividend Aristocrats List. The average analyst target price data upon which this article was based, is courtesy of data provided by Zacks Investment Research via Quandl.com.
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Dividend Growth Stocks: 25 Aristocrats »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Telephone & Data Systems Inc (Symbol: TDS) $25.31 $31.38 23.96% ABM Industries, Inc. (Symbol: ABM) $49.74 $58.33 17.28% Black Hills Corporation (Symbol: BKH) $65.65 $75.20 14.55% Abbott Laboratories (Symbol: ABT) $116.75 $132.50 13.49% SEI Investments Co (Symbol: SEIC) $62.92 $71.00 12.84% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Telephone & Data Systems Inc (Symbol: TDS) 2.77% 23.96% 26.73% ABM Industries, Inc. (Symbol: ABM) 1.53% 17.28% 18.81% Black Hills Corporation (Symbol: BKH) 3.44% 14.55% 17.99% Abbott Laboratories (Symbol: ABT) 1.54% 13.49% 15.03% SEI Investments Co (Symbol: SEIC) 1.18% 12.84% 14.02% Another consideration with dividend growth stocks is just how much the dividend is growing. Telephone & Data Systems Inc (Symbol: TDS) $0.665 $0.685 3.01% ABM Industries, Inc. (Symbol: ABM) $0.73 $0.75 2.74% Black Hills Corporation (Symbol: BKH) $2.11 $2.23 5.69% Abbott Laboratories (Symbol: ABT) $1.36 $1.62 19.12% SEI Investments Co (Symbol: SEIC) $0.68 $0.72 5.88% These five stocks are part of our full Dividend Aristocrats List. | Telephone & Data Systems Inc (Symbol: TDS) $25.31 $31.38 23.96% ABM Industries, Inc. (Symbol: ABM) $49.74 $58.33 17.28% Black Hills Corporation (Symbol: BKH) $65.65 $75.20 14.55% Abbott Laboratories (Symbol: ABT) $116.75 $132.50 13.49% SEI Investments Co (Symbol: SEIC) $62.92 $71.00 12.84% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Telephone & Data Systems Inc (Symbol: TDS) 2.77% 23.96% 26.73% ABM Industries, Inc. (Symbol: ABM) 1.53% 17.28% 18.81% Black Hills Corporation (Symbol: BKH) 3.44% 14.55% 17.99% Abbott Laboratories (Symbol: ABT) 1.54% 13.49% 15.03% SEI Investments Co (Symbol: SEIC) 1.18% 12.84% 14.02% Another consideration with dividend growth stocks is just how much the dividend is growing. Telephone & Data Systems Inc (Symbol: TDS) $0.665 $0.685 3.01% ABM Industries, Inc. (Symbol: ABM) $0.73 $0.75 2.74% Black Hills Corporation (Symbol: BKH) $2.11 $2.23 5.69% Abbott Laboratories (Symbol: ABT) $1.36 $1.62 19.12% SEI Investments Co (Symbol: SEIC) $0.68 $0.72 5.88% These five stocks are part of our full Dividend Aristocrats List. | Telephone & Data Systems Inc (Symbol: TDS) $25.31 $31.38 23.96% ABM Industries, Inc. (Symbol: ABM) $49.74 $58.33 17.28% Black Hills Corporation (Symbol: BKH) $65.65 $75.20 14.55% Abbott Laboratories (Symbol: ABT) $116.75 $132.50 13.49% SEI Investments Co (Symbol: SEIC) $62.92 $71.00 12.84% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Telephone & Data Systems Inc (Symbol: TDS) 2.77% 23.96% 26.73% ABM Industries, Inc. (Symbol: ABM) 1.53% 17.28% 18.81% Black Hills Corporation (Symbol: BKH) 3.44% 14.55% 17.99% Abbott Laboratories (Symbol: ABT) 1.54% 13.49% 15.03% SEI Investments Co (Symbol: SEIC) 1.18% 12.84% 14.02% Another consideration with dividend growth stocks is just how much the dividend is growing. Telephone & Data Systems Inc (Symbol: TDS) $0.665 $0.685 3.01% ABM Industries, Inc. (Symbol: ABM) $0.73 $0.75 2.74% Black Hills Corporation (Symbol: BKH) $2.11 $2.23 5.69% Abbott Laboratories (Symbol: ABT) $1.36 $1.62 19.12% SEI Investments Co (Symbol: SEIC) $0.68 $0.72 5.88% These five stocks are part of our full Dividend Aristocrats List. | Telephone & Data Systems Inc (Symbol: TDS) $25.31 $31.38 23.96% ABM Industries, Inc. (Symbol: ABM) $49.74 $58.33 17.28% Black Hills Corporation (Symbol: BKH) $65.65 $75.20 14.55% Abbott Laboratories (Symbol: ABT) $116.75 $132.50 13.49% SEI Investments Co (Symbol: SEIC) $62.92 $71.00 12.84% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Telephone & Data Systems Inc (Symbol: TDS) 2.77% 23.96% 26.73% ABM Industries, Inc. (Symbol: ABM) 1.53% 17.28% 18.81% Black Hills Corporation (Symbol: BKH) 3.44% 14.55% 17.99% Abbott Laboratories (Symbol: ABT) 1.54% 13.49% 15.03% SEI Investments Co (Symbol: SEIC) 1.18% 12.84% 14.02% Another consideration with dividend growth stocks is just how much the dividend is growing. Telephone & Data Systems Inc (Symbol: TDS) $0.665 $0.685 3.01% ABM Industries, Inc. (Symbol: ABM) $0.73 $0.75 2.74% Black Hills Corporation (Symbol: BKH) $2.11 $2.23 5.69% Abbott Laboratories (Symbol: ABT) $1.36 $1.62 19.12% SEI Investments Co (Symbol: SEIC) $0.68 $0.72 5.88% These five stocks are part of our full Dividend Aristocrats List. |
29325.0 | 2021-05-26 00:00:00 UTC | Buy These 2 Stocks to Be Ready for the Market Crash | ABM | https://www.nasdaq.com/articles/buy-these-2-stocks-to-be-ready-for-the-market-crash-2021-05-26 | nan | nan | The stock market's plunge last year because of the global pandemic might not be noticeable in a few years' time. The bull run that began after the Great Recession has suffered a few hiccups over the past decade or so, but largely marches on.
That rightly makes some investors nervous, as the party must end sooner or later, the thinking goes, and the market's volatility lately, with wild swings in price, could be a harbinger that we're reaching a peak.
If you're worried, too, the two stocks below ought to help you to prepare now for any market crash.
Image source: Getty Images.
1. ABM Industries
Hardly the sort of sexy business many momentum investors seek out, ABM Industries (NYSE: ABM) is a leading janitorial services and facilities manager across commercial, technology, industrial, education, and aviation.
Founded in 1909 as a window washing company, ABM has over $6 billion in annual revenue from a diversified list of customers, yet it's that sort of mundane task completion that makes ABM an attractive investment in times of trouble.
Its long history also means it has survived and thrived through all kinds of market conditions, and while the COVID-19 pandemic did hurt its operations, there is also much greater awareness for the need for cleanliness and sanitation.
So although first-quarter revenue was down 7.5% year over year, adjusted profits of $68.3 million, or $1.01 per share, were more than 2.5 times greater than the $26.2 million, or $0.39 per share, it generated last year as clients took on more work orders and performed more profitable EnhancedClean jobs that include disinfection routines.
CEO Scott Salmirs said with the rollout of vaccines, ABM is looking forward to a time where "post-pandemic normalcy will reflect a heightened sensitivity to health and hygiene."
ABM Industries pays a dividend of $0.76 per share that currently yields 1.5% annually, which it has paid every quarter since 1965 and has raised for over 50 years, putting it in that rare group of companies known as Dividend Kings.
Trading at just about seven times the free cash flow it produces, ABM Industries carries a deeply discounted valuation that ought to continue generating substantial returns for investors in good times and bad.
2. Genuine Parts
Auto parts retailer Genuine Parts (NYSE: GPC) could be primed to capitalize on any market collapse, because when times get tough, consumers hold on to the cars they already own and do repair jobs themselves, rather than buy new.
Genuine Parts, which owns the NAPA Auto Parts brand of retail stores and generates two-thirds of its revenue from automotive sales, is already facing potential gains as a computer chip shortage impacts not only the tech sector, but the automotive industry as well.
Car makers are shutting production for weeks at a time because they can't get the necessary components to build vehicles. That means annual car production is going to drop, and buyers just might decide holding on to their existing rust buckets is a better option.
The retailer saw first-quarter sales jump over 9% on a 4.6% gain in comparable-store sales, helping adjusted earnings shoot nearly 90% higher year over year. Gross margins also expanded for the 14th consecutive quarter.
The robust quarterly performance is already causing Genuine Parts to raise its sales and earnings guidance for the rest of the year, and it expects to generate $700 million to $900 million in free cash flow.
With Genuine Parts' history of increasing its dividend payments even longer than ABM (over 60 years!), and a record of making a payout longer still, investors have a company that's been looking out for its shareholders for decades.
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*Stock Advisor returns as of May 11, 2021
Rich Duprey owns shares of ABM Industries and Genuine Parts Company. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | CEO Scott Salmirs said with the rollout of vaccines, ABM is looking forward to a time where "post-pandemic normalcy will reflect a heightened sensitivity to health and hygiene." ABM Industries Hardly the sort of sexy business many momentum investors seek out, ABM Industries (NYSE: ABM) is a leading janitorial services and facilities manager across commercial, technology, industrial, education, and aviation. Founded in 1909 as a window washing company, ABM has over $6 billion in annual revenue from a diversified list of customers, yet it's that sort of mundane task completion that makes ABM an attractive investment in times of trouble. | See the 10 stocks *Stock Advisor returns as of May 11, 2021 Rich Duprey owns shares of ABM Industries and Genuine Parts Company. ABM Industries Hardly the sort of sexy business many momentum investors seek out, ABM Industries (NYSE: ABM) is a leading janitorial services and facilities manager across commercial, technology, industrial, education, and aviation. Founded in 1909 as a window washing company, ABM has over $6 billion in annual revenue from a diversified list of customers, yet it's that sort of mundane task completion that makes ABM an attractive investment in times of trouble. | See the 10 stocks *Stock Advisor returns as of May 11, 2021 Rich Duprey owns shares of ABM Industries and Genuine Parts Company. ABM Industries Hardly the sort of sexy business many momentum investors seek out, ABM Industries (NYSE: ABM) is a leading janitorial services and facilities manager across commercial, technology, industrial, education, and aviation. Founded in 1909 as a window washing company, ABM has over $6 billion in annual revenue from a diversified list of customers, yet it's that sort of mundane task completion that makes ABM an attractive investment in times of trouble. | See the 10 stocks *Stock Advisor returns as of May 11, 2021 Rich Duprey owns shares of ABM Industries and Genuine Parts Company. ABM Industries Hardly the sort of sexy business many momentum investors seek out, ABM Industries (NYSE: ABM) is a leading janitorial services and facilities manager across commercial, technology, industrial, education, and aviation. Founded in 1909 as a window washing company, ABM has over $6 billion in annual revenue from a diversified list of customers, yet it's that sort of mundane task completion that makes ABM an attractive investment in times of trouble. |
29326.0 | 2021-05-17 00:00:00 UTC | Is There Now An Opportunity In ABM Industries Incorporated (NYSE:ABM)? | ABM | https://www.nasdaq.com/articles/is-there-now-an-opportunity-in-abm-industries-incorporated-nyse%3Aabm-2021-05-17 | nan | nan | While ABM Industries Incorporated (NYSE:ABM) might not be the most widely known stock at the moment, it led the NYSE gainers with a relatively large price hike in the past couple of weeks. As a mid-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. But what if there is still an opportunity to buy? Let’s take a look at ABM Industries’s outlook and value based on the most recent financial data to see if the opportunity still exists.
Is ABM Industries still cheap?
According to my valuation model, ABM Industries seems to be fairly priced at around 9.1% below my intrinsic value, which means if you buy ABM Industries today, you’d be paying a reasonable price for it. And if you believe that the stock is really worth $58.80, then there’s not much of an upside to gain from mispricing. So, is there another chance to buy low in the future? Given that ABM Industries’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us an opportunity to buy later on. This is based on its high beta, which is a good indicator for share price volatility.
What kind of growth will ABM Industries generate?
NYSE:ABM Earnings and Revenue Growth May 17th 2021
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. In ABM Industries' case, its earnings over the next year are expected to double, indicating an incredibly optimistic future ahead. This should lead to stronger cash flows, feeding into a higher share value.
What this means for you:
Are you a shareholder? ABM’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?
Are you a potential investor? If you’ve been keeping an eye on ABM, now may not be the most optimal time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for the company, which means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.
So if you'd like to dive deeper into this stock, it's crucial to consider any risks it's facing. For example - ABM Industries has 6 warning signs we think you should be aware of.
If you are no longer interested in ABM Industries, you can use our free platform to see our list of over 50 other stocks with a high growth potential.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In ABM Industries' case, its earnings over the next year are expected to double, indicating an incredibly optimistic future ahead. If you are no longer interested in ABM Industries, you can use our free platform to see our list of over 50 other stocks with a high growth potential. While ABM Industries Incorporated (NYSE:ABM) might not be the most widely known stock at the moment, it led the NYSE gainers with a relatively large price hike in the past couple of weeks. | Let’s take a look at ABM Industries’s outlook and value based on the most recent financial data to see if the opportunity still exists. According to my valuation model, ABM Industries seems to be fairly priced at around 9.1% below my intrinsic value, which means if you buy ABM Industries today, you’d be paying a reasonable price for it. Given that ABM Industries’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us an opportunity to buy later on. | While ABM Industries Incorporated (NYSE:ABM) might not be the most widely known stock at the moment, it led the NYSE gainers with a relatively large price hike in the past couple of weeks. According to my valuation model, ABM Industries seems to be fairly priced at around 9.1% below my intrinsic value, which means if you buy ABM Industries today, you’d be paying a reasonable price for it. Given that ABM Industries’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us an opportunity to buy later on. | According to my valuation model, ABM Industries seems to be fairly priced at around 9.1% below my intrinsic value, which means if you buy ABM Industries today, you’d be paying a reasonable price for it. ABM’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. While ABM Industries Incorporated (NYSE:ABM) might not be the most widely known stock at the moment, it led the NYSE gainers with a relatively large price hike in the past couple of weeks. |
29327.0 | 2021-05-06 00:00:00 UTC | Validea Joel Greenblatt Strategy Daily Upgrade Report - 5/6/2021 | ABM | https://www.nasdaq.com/articles/validea-joel-greenblatt-strategy-daily-upgrade-report-5-6-2021-2021-05-06 | nan | nan | The following are today's upgrades for Validea's Earnings Yield Investor model based on the published strategy of Joel Greenblatt. This value model looks for companies with high return on capital and earnings yields.
ABM INDUSTRIES, INC. (ABM) is a mid-cap growth stock in the Business Services industry. The rating according to our strategy based on Joel Greenblatt changed from 80% to 90% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: ABM Industries Incorporated is a provider of integrated facility solutions. The Company operates through five segments: Janitorial, Facility Services, Parking, Building & Energy Solutions, and other. Its Janitorial segment provides a range of cleaning services for commercial office buildings, data centers, educational institutions, government buildings, health facilities, industrial buildings, retail stores, sport event facilities and transportation hubs. Its Facility Services segment provides onsite mechanical engineering and technical services and solutions relating to a range of facilities and infrastructure systems. Its Parking segment provides parking and transportation services. Its Building & Energy Solutions segment provides energy solutions; electrical; heating, ventilation and air conditioning; lighting, and other general maintenance and repair services for clients. Its other segment provides facility solutions to airlines and airports.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
EARNINGS YIELD: NEUTRAL
RETURN ON TANGIBLE CAPITAL: NEUTRAL
FINAL RANKING: PASS
Detailed Analysis of ABM INDUSTRIES, INC.
Full Guru Analysis for ABM
Full Factor Report for ABM
BEST BUY CO INC (BBY) is a large-cap growth stock in the Retail (Technology) industry. The rating according to our strategy based on Joel Greenblatt changed from 80% to 90% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Best Buy Co., Inc. is a provider of technology products, services and solutions. The Company offers products and services to the customers visiting its stores, engaging with Geek Squad agents, or using its Websites or mobile applications. It has operations in the United States, Canada and Mexico. The Company operates through two segments: Domestic and International. The Domestic segment consists of the operations in all states, districts and territories of the United States, under various brand names, including Best Buy, bestbuy.com, Best Buy Mobile, Best Buy Direct, Best Buy Express, Geek Squad, Magnolia Home Theater, and Pacific Kitchen and Home. The International segment consists of all operations in Canada and Mexico under the brand names, Best Buy, bestbuy.com.ca, bestbuy.com.mx, Best Buy Express, Best Buy Mobile and Geek Squad. As of December 31, 2016, the Company operated 1,200 large-format and 400 small-format stores throughout its Domestic and International segments.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
EARNINGS YIELD: NEUTRAL
RETURN ON TANGIBLE CAPITAL: NEUTRAL
FINAL RANKING: PASS
Detailed Analysis of BEST BUY CO INC
Full Guru Analysis for BBY
Full Factor Report for BBY
AUTONATION, INC. (AN) is a mid-cap value stock in the Retail (Specialty) industry. The rating according to our strategy based on Joel Greenblatt changed from 70% to 80% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: AutoNation, Inc. (AutoNation) is an automotive retailer in the United States. The Company offers a range of automotive products and services, including new vehicles, used vehicles, parts and service, which includes automotive repair and maintenance services, as well as wholesale parts and collision businesses, and automotive finance and insurance products, including vehicle service and other protection products, as well as the arranging of financing for vehicle purchases through third-party finance sources. It operates through three segments: Domestic, Import and Premium Luxury. Its Domestic segment consists of retail automotive franchises that sell new vehicles manufactured by General Motors, Ford and FCA US. The Import segment consists of retail automotive franchises that sell new vehicles manufactured primarily by Toyota, Honda and Nissan. The Premium Luxury segment consists of retail automotive franchises that sell new vehicles manufactured by Mercedes-Benz, BMW, Audi and Lexus.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
EARNINGS YIELD: NEUTRAL
RETURN ON TANGIBLE CAPITAL: NEUTRAL
FINAL RANKING: FAIL
Detailed Analysis of AUTONATION, INC.
Full Guru Analysis for AN
Full Factor Report for AN
More details on Validea's Joel Greenblatt strategy
Joel Greenblatt Stock Ideas
About Joel Greenblatt: In his 2005 bestseller The Little Book That Beats The Market, hedge fund manager Joel Greenblatt laid out a stunningly simple way to beat the market using two -- and only two -- fundamental variables. The "Magic Formula," as he called it, produced back-tested returns of 30.8 percent per year from 1988 through 2004, more than doubling the S&P 500's 12.4 percent return during that time. Greenblatt also produced exceptional returns as managing partner at Gotham Capital, a New York City-based hedge fund he founded. The firm averaged a remarkable 40 percent annualized return over more than two decades.
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | ABM INDUSTRIES, INC. (ABM) is a mid-cap growth stock in the Business Services industry. Company Description: ABM Industries Incorporated is a provider of integrated facility solutions. Detailed Analysis of ABM INDUSTRIES, INC. Full Guru Analysis for ABM Full Factor Report for ABM BEST BUY CO INC (BBY) is a large-cap growth stock in the Retail (Technology) industry. | Detailed Analysis of ABM INDUSTRIES, INC. Full Guru Analysis for ABM Full Factor Report for ABM BEST BUY CO INC (BBY) is a large-cap growth stock in the Retail (Technology) industry. ABM INDUSTRIES, INC. (ABM) is a mid-cap growth stock in the Business Services industry. Company Description: ABM Industries Incorporated is a provider of integrated facility solutions. | ABM INDUSTRIES, INC. (ABM) is a mid-cap growth stock in the Business Services industry. Company Description: ABM Industries Incorporated is a provider of integrated facility solutions. Detailed Analysis of ABM INDUSTRIES, INC. Full Guru Analysis for ABM Full Factor Report for ABM BEST BUY CO INC (BBY) is a large-cap growth stock in the Retail (Technology) industry. | ABM INDUSTRIES, INC. (ABM) is a mid-cap growth stock in the Business Services industry. Company Description: ABM Industries Incorporated is a provider of integrated facility solutions. Detailed Analysis of ABM INDUSTRIES, INC. Full Guru Analysis for ABM Full Factor Report for ABM BEST BUY CO INC (BBY) is a large-cap growth stock in the Retail (Technology) industry. |
29328.0 | 2021-04-26 00:00:00 UTC | 5 Dividend Growth Stocks With Upside To Analyst Targets | ABM | https://www.nasdaq.com/articles/5-dividend-growth-stocks-with-upside-to-analyst-targets-2021-04-26 | nan | nan | To become a "Dividend Aristocrat," a dividend paying company must accomplish an incredible feat: consistently increase shareholder dividends every year for at least 20 consecutive years. Companies with this kind of track record tend to attract a lot of investor attention — and furthermore, "tracking" funds that follow the Dividend Aristocrats Index must own them. With all of this demand for shares, dividend growth stocks can sometimes become "fully priced," where there isn't much upside to analyst targets.
But we here at ETF Channel have looked through the underlying holdings of the SPDR S&P Dividend ETF (which tracks the S&P High Yield Dividend Aristocrats Index), and found these five dividend growth stocks that actually still have fairly substantial upside to the average analyst target price 12 months out. Which means, if the analysts are correct, these are five dividend growth stocks that could produce capital gains in addition to their growing dividend payments.
In the first table below, we present the five stocks. The recent share price, average analyst 12-month target price, and percentage upside to reach the analyst target are presented.
STOCK RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET
Telephone & Data Systems Inc (Symbol: TDS) $23.78 $30.12 26.68%
SEI Investments Co (Symbol: SEIC) $57.85 $71.00 22.73%
ABM Industries, Inc. (Symbol: ABM) $53.52 $58.33 8.99%
Abbott Laboratories (Symbol: ABT) $123.31 $132.50 7.45%
Black Hills Corporation (Symbol: BKH) $69.56 $74.50 7.10%
The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. To ballpark that total return potential, we have added the current yield to the analyst target price upside, in order to arrive at the 12-month total return potential:
STOCK DIVIDEND YIELD % UPSIDE TO ANALYST TARGET IMPLIED TOTAL RETURN POTENTIAL
Telephone & Data Systems Inc (Symbol: TDS) 2.94% 26.68% 29.62%
SEI Investments Co (Symbol: SEIC) 1.28% 22.73% 24.01%
ABM Industries, Inc. (Symbol: ABM) 1.42% 8.99% 10.41%
Abbott Laboratories (Symbol: ABT) 1.46% 7.45% 8.91%
Black Hills Corporation (Symbol: BKH) 3.25% 7.10% 10.35%
Another consideration with dividend growth stocks is just how much the dividend is growing. We looked up the trailing twelve months worth of dividends shareholders of each of the above five companies have collected, and then also looked up the same number for the prior trailing twelve months. This gives us a rough yardstick to see how much the dividend has grown, from one trailing twelve month period to another.
STOCK PRIOR TTM DIVIDEND TTM DIVIDEND % GROWTH
Telephone & Data Systems Inc (Symbol: TDS) $0.665 $0.685 3.01%
SEI Investments Co (Symbol: SEIC) $0.68 $0.72 5.88%
ABM Industries, Inc. (Symbol: ABM) $0.73 $0.75 2.74%
Abbott Laboratories (Symbol: ABT) $1.36 $1.62 19.12%
Black Hills Corporation (Symbol: BKH) $2.08 $2.2 5.77%
These five stocks are part of our full Dividend Aristocrats List. The average analyst target price data upon which this article was based, is courtesy of data provided by Zacks Investment Research via Quandl.com.
Get the latest Zacks research report on ABT — FREE
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Dividend Growth Stocks: 25 Aristocrats »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Telephone & Data Systems Inc (Symbol: TDS) $23.78 $30.12 26.68% SEI Investments Co (Symbol: SEIC) $57.85 $71.00 22.73% ABM Industries, Inc. (Symbol: ABM) $53.52 $58.33 8.99% Abbott Laboratories (Symbol: ABT) $123.31 $132.50 7.45% Black Hills Corporation (Symbol: BKH) $69.56 $74.50 7.10% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Telephone & Data Systems Inc (Symbol: TDS) 2.94% 26.68% 29.62% SEI Investments Co (Symbol: SEIC) 1.28% 22.73% 24.01% ABM Industries, Inc. (Symbol: ABM) 1.42% 8.99% 10.41% Abbott Laboratories (Symbol: ABT) 1.46% 7.45% 8.91% Black Hills Corporation (Symbol: BKH) 3.25% 7.10% 10.35% Another consideration with dividend growth stocks is just how much the dividend is growing. Telephone & Data Systems Inc (Symbol: TDS) $0.665 $0.685 3.01% SEI Investments Co (Symbol: SEIC) $0.68 $0.72 5.88% ABM Industries, Inc. (Symbol: ABM) $0.73 $0.75 2.74% Abbott Laboratories (Symbol: ABT) $1.36 $1.62 19.12% Black Hills Corporation (Symbol: BKH) $2.08 $2.2 5.77% These five stocks are part of our full Dividend Aristocrats List. | Telephone & Data Systems Inc (Symbol: TDS) $23.78 $30.12 26.68% SEI Investments Co (Symbol: SEIC) $57.85 $71.00 22.73% ABM Industries, Inc. (Symbol: ABM) $53.52 $58.33 8.99% Abbott Laboratories (Symbol: ABT) $123.31 $132.50 7.45% Black Hills Corporation (Symbol: BKH) $69.56 $74.50 7.10% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Telephone & Data Systems Inc (Symbol: TDS) 2.94% 26.68% 29.62% SEI Investments Co (Symbol: SEIC) 1.28% 22.73% 24.01% ABM Industries, Inc. (Symbol: ABM) 1.42% 8.99% 10.41% Abbott Laboratories (Symbol: ABT) 1.46% 7.45% 8.91% Black Hills Corporation (Symbol: BKH) 3.25% 7.10% 10.35% Another consideration with dividend growth stocks is just how much the dividend is growing. Telephone & Data Systems Inc (Symbol: TDS) $0.665 $0.685 3.01% SEI Investments Co (Symbol: SEIC) $0.68 $0.72 5.88% ABM Industries, Inc. (Symbol: ABM) $0.73 $0.75 2.74% Abbott Laboratories (Symbol: ABT) $1.36 $1.62 19.12% Black Hills Corporation (Symbol: BKH) $2.08 $2.2 5.77% These five stocks are part of our full Dividend Aristocrats List. | Telephone & Data Systems Inc (Symbol: TDS) $23.78 $30.12 26.68% SEI Investments Co (Symbol: SEIC) $57.85 $71.00 22.73% ABM Industries, Inc. (Symbol: ABM) $53.52 $58.33 8.99% Abbott Laboratories (Symbol: ABT) $123.31 $132.50 7.45% Black Hills Corporation (Symbol: BKH) $69.56 $74.50 7.10% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Telephone & Data Systems Inc (Symbol: TDS) 2.94% 26.68% 29.62% SEI Investments Co (Symbol: SEIC) 1.28% 22.73% 24.01% ABM Industries, Inc. (Symbol: ABM) 1.42% 8.99% 10.41% Abbott Laboratories (Symbol: ABT) 1.46% 7.45% 8.91% Black Hills Corporation (Symbol: BKH) 3.25% 7.10% 10.35% Another consideration with dividend growth stocks is just how much the dividend is growing. Telephone & Data Systems Inc (Symbol: TDS) $0.665 $0.685 3.01% SEI Investments Co (Symbol: SEIC) $0.68 $0.72 5.88% ABM Industries, Inc. (Symbol: ABM) $0.73 $0.75 2.74% Abbott Laboratories (Symbol: ABT) $1.36 $1.62 19.12% Black Hills Corporation (Symbol: BKH) $2.08 $2.2 5.77% These five stocks are part of our full Dividend Aristocrats List. | Telephone & Data Systems Inc (Symbol: TDS) $23.78 $30.12 26.68% SEI Investments Co (Symbol: SEIC) $57.85 $71.00 22.73% ABM Industries, Inc. (Symbol: ABM) $53.52 $58.33 8.99% Abbott Laboratories (Symbol: ABT) $123.31 $132.50 7.45% Black Hills Corporation (Symbol: BKH) $69.56 $74.50 7.10% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Telephone & Data Systems Inc (Symbol: TDS) 2.94% 26.68% 29.62% SEI Investments Co (Symbol: SEIC) 1.28% 22.73% 24.01% ABM Industries, Inc. (Symbol: ABM) 1.42% 8.99% 10.41% Abbott Laboratories (Symbol: ABT) 1.46% 7.45% 8.91% Black Hills Corporation (Symbol: BKH) 3.25% 7.10% 10.35% Another consideration with dividend growth stocks is just how much the dividend is growing. Telephone & Data Systems Inc (Symbol: TDS) $0.665 $0.685 3.01% SEI Investments Co (Symbol: SEIC) $0.68 $0.72 5.88% ABM Industries, Inc. (Symbol: ABM) $0.73 $0.75 2.74% Abbott Laboratories (Symbol: ABT) $1.36 $1.62 19.12% Black Hills Corporation (Symbol: BKH) $2.08 $2.2 5.77% These five stocks are part of our full Dividend Aristocrats List. |
29329.0 | 2021-04-21 00:00:00 UTC | Update: ABM Industries (NYSE:ABM) Stock Gained 71% In The Last Year | ABM | https://www.nasdaq.com/articles/update%3A-abm-industries-nyse%3Aabm-stock-gained-71-in-the-last-year-2021-04-21 | nan | nan | These days it's easy to simply buy an index fund, and your returns should (roughly) match the market. But if you pick the right individual stocks, you could make more than that. For example, the ABM Industries Incorporated (NYSE:ABM) share price is up 71% in the last year, clearly besting the market return of around 58% (not including dividends). So that should have shareholders smiling. And shareholders have also done well over the long term, with an increase of 61% in the last three years.
To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.
ABM Industries went from making a loss to reporting a profit, in the last year.
When a company has just transitioned to profitability, earnings per share growth is not always the best way to look at the share price action.
We doubt the modest 1.5% dividend yield is doing much to support the share price. ABM Industries' revenue actually dropped 9.8% over last year. So using a snapshot of key business metrics doesn't give us a good picture of why the market is bidding up the stock.
The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).
NYSE:ABM Earnings and Revenue Growth April 21st 2021
You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.
What About Dividends?
As well as measuring the share price return, investors should also consider the total shareholder return (TSR). The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. We note that for ABM Industries the TSR over the last year was 74%, which is better than the share price return mentioned above. The dividends paid by the company have thusly boosted the total shareholder return.
A Different Perspective
We're pleased to report that ABM Industries shareholders have received a total shareholder return of 74% over one year. And that does include the dividend. That's better than the annualised return of 12% over half a decade, implying that the company is doing better recently. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. It's always interesting to track share price performance over the longer term. But to understand ABM Industries better, we need to consider many other factors. For example, we've discovered 6 warning signs for ABM Industries that you should be aware of before investing here.
We will like ABM Industries better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | NYSE:ABM Earnings and Revenue Growth April 21st 2021 You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic. For example, the ABM Industries Incorporated (NYSE:ABM) share price is up 71% in the last year, clearly besting the market return of around 58% (not including dividends). ABM Industries went from making a loss to reporting a profit, in the last year. | For example, the ABM Industries Incorporated (NYSE:ABM) share price is up 71% in the last year, clearly besting the market return of around 58% (not including dividends). A Different Perspective We're pleased to report that ABM Industries shareholders have received a total shareholder return of 74% over one year. ABM Industries went from making a loss to reporting a profit, in the last year. | For example, the ABM Industries Incorporated (NYSE:ABM) share price is up 71% in the last year, clearly besting the market return of around 58% (not including dividends). We note that for ABM Industries the TSR over the last year was 74%, which is better than the share price return mentioned above. A Different Perspective We're pleased to report that ABM Industries shareholders have received a total shareholder return of 74% over one year. | For example, the ABM Industries Incorporated (NYSE:ABM) share price is up 71% in the last year, clearly besting the market return of around 58% (not including dividends). We note that for ABM Industries the TSR over the last year was 74%, which is better than the share price return mentioned above. We will like ABM Industries better if we see some big insider buys. |
29330.0 | 2021-03-30 00:00:00 UTC | ABM Industries Incorporated (ABM) Ex-Dividend Date Scheduled for March 31, 2021 | ABM | https://www.nasdaq.com/articles/abm-industries-incorporated-abm-ex-dividend-date-scheduled-for-march-31-2021-2021-03-30 | nan | nan | ABM Industries Incorporated (ABM) will begin trading ex-dividend on March 31, 2021. A cash dividend payment of $0.19 per share is scheduled to be paid on May 03, 2021. Shareholders who purchased ABM prior to the ex-dividend date are eligible for the cash dividend payment. At the current stock price of $50.09, the dividend yield is 1.52%.
The previous trading day's last sale of ABM was $50.09, representing a -9.72% decrease from the 52 week high of $55.48 and a 131.9% increase over the 52 week low of $21.60.
ABM is a part of the Finance sector, which includes companies such as Airbnb, Inc. (ABNB) and Paychex, Inc. (PAYX). ABM's current earnings per share, an indicator of a company's profitability, is $.66. Zacks Investment Research reports ABM's forecasted earnings growth in 2021 as 33.33%, compared to an industry average of 17.8%.
For more information on the declaration, record and payment dates, visit the ABM Dividend History page. Our Dividend Calendar has the full list of stocks that have an ex-dividend today.
Interested in gaining exposure to ABM through an Exchange Traded Fund [ETF]?
The following ETF(s) have ABM as a top-10 holding:
VanEck Vectors Environmental Services ETF (EVX)
Pacer Funds (CALF)
Invesco S&P SmallCap Industrials ETF (PSCI)
SPDR S&P 600 Small Cap Value ETF (based on S&P SmallCap Value (SLYV)
iShares S&P SmallCap 600 Value ETF (IJS).
The top-performing ETF of this group is CALF with an increase of 54.77% over the last 100 days. EVX has the highest percent weighting of ABM at 4.15%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | ABM is a part of the Finance sector, which includes companies such as Airbnb, Inc. (ABNB) and Paychex, Inc. (PAYX). Zacks Investment Research reports ABM's forecasted earnings growth in 2021 as 33.33%, compared to an industry average of 17.8%. For more information on the declaration, record and payment dates, visit the ABM Dividend History page. | ABM Industries Incorporated (ABM) will begin trading ex-dividend on March 31, 2021. ABM's current earnings per share, an indicator of a company's profitability, is $.66. The following ETF(s) have ABM as a top-10 holding: VanEck Vectors Environmental Services ETF (EVX) Pacer Funds (CALF) Invesco S&P SmallCap Industrials ETF (PSCI) SPDR S&P 600 Small Cap Value ETF (based on S&P SmallCap Value (SLYV) iShares S&P SmallCap 600 Value ETF (IJS). | ABM Industries Incorporated (ABM) will begin trading ex-dividend on March 31, 2021. Shareholders who purchased ABM prior to the ex-dividend date are eligible for the cash dividend payment. The following ETF(s) have ABM as a top-10 holding: VanEck Vectors Environmental Services ETF (EVX) Pacer Funds (CALF) Invesco S&P SmallCap Industrials ETF (PSCI) SPDR S&P 600 Small Cap Value ETF (based on S&P SmallCap Value (SLYV) iShares S&P SmallCap 600 Value ETF (IJS). | Shareholders who purchased ABM prior to the ex-dividend date are eligible for the cash dividend payment. ABM's current earnings per share, an indicator of a company's profitability, is $.66. The following ETF(s) have ABM as a top-10 holding: VanEck Vectors Environmental Services ETF (EVX) Pacer Funds (CALF) Invesco S&P SmallCap Industrials ETF (PSCI) SPDR S&P 600 Small Cap Value ETF (based on S&P SmallCap Value (SLYV) iShares S&P SmallCap 600 Value ETF (IJS). |
29331.0 | 2021-03-26 00:00:00 UTC | Dividend Investors: Don't Be Too Quick To Buy ABM Industries Incorporated (NYSE:ABM) For Its Upcoming Dividend | ABM | https://www.nasdaq.com/articles/dividend-investors%3A-dont-be-too-quick-to-buy-abm-industries-incorporated-nyse%3Aabm-for-its | nan | nan | Regular readers will know that we love our dividends at Simply Wall St, which is why it's exciting to see ABM Industries Incorporated (NYSE:ABM) is about to trade ex-dividend in the next four days. Investors can purchase shares before the 31st of March in order to be eligible for this dividend, which will be paid on the 3rd of May.
ABM Industries's next dividend payment will be US$0.19 per share. Last year, in total, the company distributed US$0.76 to shareholders. Calculating the last year's worth of payments shows that ABM Industries has a trailing yield of 1.5% on the current share price of $49.98. Dividends are an important source of income to many shareholders, but the health of the business is crucial to maintaining those dividends. So we need to check whether the dividend payments are covered, and if earnings are growing.
Dividends are typically paid out of company income, so if a company pays out more than it earned, its dividend is usually at a higher risk of being cut. Last year ABM Industries paid out 106% of its profits as dividends to shareholders, suggesting the dividend is not well covered by earnings. Yet cash flow is typically more important than profit for assessing dividend sustainability, so we should always check if the company generated enough cash to afford its dividend. What's good is that dividends were well covered by free cash flow, with the company paying out 9.9% of its cash flow last year.
It's disappointing to see that the dividend was not covered by profits, but cash is more important from a dividend sustainability perspective, and ABM Industries fortunately did generate enough cash to fund its dividend. If executives were to continue paying more in dividends than the company reported in profits, we'd view this as a warning sign. Very few companies are able to sustainably pay dividends larger than their reported earnings.
Click here to see the company's payout ratio, plus analyst estimates of its future dividends.
NYSE:ABM Historic Dividend March 26th 2021
Have Earnings And Dividends Been Growing?
Businesses with shrinking earnings are tricky from a dividend perspective. If earnings fall far enough, the company could be forced to cut its dividend. ABM Industries's earnings per share have fallen at approximately 6.0% a year over the previous five years. Ultimately, when earnings per share decline, the size of the pie from which dividends can be paid, shrinks.
The main way most investors will assess a company's dividend prospects is by checking the historical rate of dividend growth. ABM Industries has delivered an average of 3.5% per year annual increase in its dividend, based on the past 10 years of dividend payments. That's intriguing, but the combination of growing dividends despite declining earnings can typically only be achieved by paying out a larger percentage of profits. ABM Industries is already paying out 106% of its profits, and with shrinking earnings we think it's unlikely that this dividend will grow quickly in the future.
To Sum It Up
From a dividend perspective, should investors buy or avoid ABM Industries? It's never great to see earnings per share declining, especially when a company is paying out 106% of its profit as dividends, which we feel is uncomfortably high. Yet cashflow was much stronger, which makes us wonder if there are some large timing issues in ABM Industries's cash flows, or perhaps the company has written down some assets aggressively, reducing its income. With the way things are shaping up from a dividend perspective, we'd be inclined to steer clear of ABM Industries.
Although, if you're still interested in ABM Industries and want to know more, you'll find it very useful to know what risks this stock faces. For example, we've found 6 warning signs for ABM Industries that we recommend you consider before investing in the business.
A common investment mistake is buying the first interesting stock you see. Here you can find a list of promising dividend stocks with a greater than 2% yield and an upcoming dividend.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Calculating the last year's worth of payments shows that ABM Industries has a trailing yield of 1.5% on the current share price of $49.98. Yet cashflow was much stronger, which makes us wonder if there are some large timing issues in ABM Industries's cash flows, or perhaps the company has written down some assets aggressively, reducing its income. Regular readers will know that we love our dividends at Simply Wall St, which is why it's exciting to see ABM Industries Incorporated (NYSE:ABM) is about to trade ex-dividend in the next four days. | It's disappointing to see that the dividend was not covered by profits, but cash is more important from a dividend sustainability perspective, and ABM Industries fortunately did generate enough cash to fund its dividend. NYSE:ABM Historic Dividend March 26th 2021 Have Earnings And Dividends Been Growing? Regular readers will know that we love our dividends at Simply Wall St, which is why it's exciting to see ABM Industries Incorporated (NYSE:ABM) is about to trade ex-dividend in the next four days. | Last year ABM Industries paid out 106% of its profits as dividends to shareholders, suggesting the dividend is not well covered by earnings. It's disappointing to see that the dividend was not covered by profits, but cash is more important from a dividend sustainability perspective, and ABM Industries fortunately did generate enough cash to fund its dividend. Regular readers will know that we love our dividends at Simply Wall St, which is why it's exciting to see ABM Industries Incorporated (NYSE:ABM) is about to trade ex-dividend in the next four days. | ABM Industries's next dividend payment will be US$0.19 per share. Last year ABM Industries paid out 106% of its profits as dividends to shareholders, suggesting the dividend is not well covered by earnings. Regular readers will know that we love our dividends at Simply Wall St, which is why it's exciting to see ABM Industries Incorporated (NYSE:ABM) is about to trade ex-dividend in the next four days. |
29332.0 | 2021-03-19 00:00:00 UTC | 5 Dividend Aristocrats Where Analysts See Capital Gains | ABM | https://www.nasdaq.com/articles/5-dividend-aristocrats-where-analysts-see-capital-gains-2021-03-19 | nan | nan | To become a "Dividend Aristocrat," a dividend paying company must accomplish an incredible feat: consistently increase shareholder dividends every year for at least 20 consecutive years. Companies with this kind of track record tend to attract a lot of investor attention — and furthermore, "tracking" funds that follow the Dividend Aristocrats Index must own them. With all of this demand for shares, dividend growth stocks can sometimes become "fully priced," where there isn't much upside to analyst targets.
But we here at ETF Channel have looked through the underlying holdings of the SPDR S&P Dividend ETF (which tracks the S&P High Yield Dividend Aristocrats Index), and found these five dividend growth stocks that actually still have fairly substantial upside to the average analyst target price 12 months out. Which means, if the analysts are correct, these are five dividend growth stocks that could produce capital gains in addition to their growing dividend payments.
In the first table below, we present the five stocks. The recent share price, average analyst 12-month target price, and percentage upside to reach the analyst target are presented.
STOCK RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET
South Jersey Industries Inc (Symbol: SJI) $21.51 $25.14 16.89%
Chevron Corporation (Symbol: CVX) $104.12 $112.72 8.26%
ABM Industries, Inc. (Symbol: ABM) $50.26 $53.33 6.11%
Sherwin-Williams Co (Symbol: SHW) $710.13 $753.27 6.07%
Sysco Corp (Symbol: SYY) $78.82 $82.83 5.09%
The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. To ballpark that total return potential, we have added the current yield to the analyst target price upside, in order to arrive at the 12-month total return potential:
STOCK DIVIDEND YIELD % UPSIDE TO ANALYST TARGET IMPLIED TOTAL RETURN POTENTIAL
South Jersey Industries Inc (Symbol: SJI) 5.63% 16.89% 22.52%
Chevron Corporation (Symbol: CVX) 4.96% 8.26% 13.22%
ABM Industries, Inc. (Symbol: ABM) 1.51% 6.11% 7.62%
Sherwin-Williams Co (Symbol: SHW) 0.93% 6.07% 7%
Sysco Corp (Symbol: SYY) 2.28% 5.09% 7.37%
Another consideration with dividend growth stocks is just how much the dividend is growing. We looked up the trailing twelve months worth of dividends shareholders of each of the above five companies have collected, and then also looked up the same number for the prior trailing twelve months. This gives us a rough yardstick to see how much the dividend has grown, from one trailing twelve month period to another.
STOCK PRIOR TTM DIVIDEND TTM DIVIDEND % GROWTH
South Jersey Industries Inc (Symbol: SJI) $1.166 $1.196 2.57%
Chevron Corporation (Symbol: CVX) $4.86 $5.16 6.17%
ABM Industries, Inc. (Symbol: ABM) $0.725 $0.745 2.76%
Sherwin-Williams Co (Symbol: SHW) $4.73 $5.67 19.87%
Sysco Corp (Symbol: SYY) $1.62 $1.8 11.11%
These five stocks are part of our full Dividend Aristocrats List. The average analyst target price data upon which this article was based, is courtesy of data provided by Zacks Investment Research via Quandl.com.
Get the latest Zacks research report on SHW — FREE
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Dividend Growth Stocks: 25 Aristocrats »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | South Jersey Industries Inc (Symbol: SJI) $21.51 $25.14 16.89% Chevron Corporation (Symbol: CVX) $104.12 $112.72 8.26% ABM Industries, Inc. (Symbol: ABM) $50.26 $53.33 6.11% Sherwin-Williams Co (Symbol: SHW) $710.13 $753.27 6.07% Sysco Corp (Symbol: SYY) $78.82 $82.83 5.09% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. South Jersey Industries Inc (Symbol: SJI) 5.63% 16.89% 22.52% Chevron Corporation (Symbol: CVX) 4.96% 8.26% 13.22% ABM Industries, Inc. (Symbol: ABM) 1.51% 6.11% 7.62% Sherwin-Williams Co (Symbol: SHW) 0.93% 6.07% 7% Sysco Corp (Symbol: SYY) 2.28% 5.09% 7.37% Another consideration with dividend growth stocks is just how much the dividend is growing. South Jersey Industries Inc (Symbol: SJI) $1.166 $1.196 2.57% Chevron Corporation (Symbol: CVX) $4.86 $5.16 6.17% ABM Industries, Inc. (Symbol: ABM) $0.725 $0.745 2.76% Sherwin-Williams Co (Symbol: SHW) $4.73 $5.67 19.87% Sysco Corp (Symbol: SYY) $1.62 $1.8 11.11% These five stocks are part of our full Dividend Aristocrats List. | South Jersey Industries Inc (Symbol: SJI) $21.51 $25.14 16.89% Chevron Corporation (Symbol: CVX) $104.12 $112.72 8.26% ABM Industries, Inc. (Symbol: ABM) $50.26 $53.33 6.11% Sherwin-Williams Co (Symbol: SHW) $710.13 $753.27 6.07% Sysco Corp (Symbol: SYY) $78.82 $82.83 5.09% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. South Jersey Industries Inc (Symbol: SJI) 5.63% 16.89% 22.52% Chevron Corporation (Symbol: CVX) 4.96% 8.26% 13.22% ABM Industries, Inc. (Symbol: ABM) 1.51% 6.11% 7.62% Sherwin-Williams Co (Symbol: SHW) 0.93% 6.07% 7% Sysco Corp (Symbol: SYY) 2.28% 5.09% 7.37% Another consideration with dividend growth stocks is just how much the dividend is growing. South Jersey Industries Inc (Symbol: SJI) $1.166 $1.196 2.57% Chevron Corporation (Symbol: CVX) $4.86 $5.16 6.17% ABM Industries, Inc. (Symbol: ABM) $0.725 $0.745 2.76% Sherwin-Williams Co (Symbol: SHW) $4.73 $5.67 19.87% Sysco Corp (Symbol: SYY) $1.62 $1.8 11.11% These five stocks are part of our full Dividend Aristocrats List. | South Jersey Industries Inc (Symbol: SJI) $21.51 $25.14 16.89% Chevron Corporation (Symbol: CVX) $104.12 $112.72 8.26% ABM Industries, Inc. (Symbol: ABM) $50.26 $53.33 6.11% Sherwin-Williams Co (Symbol: SHW) $710.13 $753.27 6.07% Sysco Corp (Symbol: SYY) $78.82 $82.83 5.09% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. South Jersey Industries Inc (Symbol: SJI) 5.63% 16.89% 22.52% Chevron Corporation (Symbol: CVX) 4.96% 8.26% 13.22% ABM Industries, Inc. (Symbol: ABM) 1.51% 6.11% 7.62% Sherwin-Williams Co (Symbol: SHW) 0.93% 6.07% 7% Sysco Corp (Symbol: SYY) 2.28% 5.09% 7.37% Another consideration with dividend growth stocks is just how much the dividend is growing. South Jersey Industries Inc (Symbol: SJI) $1.166 $1.196 2.57% Chevron Corporation (Symbol: CVX) $4.86 $5.16 6.17% ABM Industries, Inc. (Symbol: ABM) $0.725 $0.745 2.76% Sherwin-Williams Co (Symbol: SHW) $4.73 $5.67 19.87% Sysco Corp (Symbol: SYY) $1.62 $1.8 11.11% These five stocks are part of our full Dividend Aristocrats List. | South Jersey Industries Inc (Symbol: SJI) $21.51 $25.14 16.89% Chevron Corporation (Symbol: CVX) $104.12 $112.72 8.26% ABM Industries, Inc. (Symbol: ABM) $50.26 $53.33 6.11% Sherwin-Williams Co (Symbol: SHW) $710.13 $753.27 6.07% Sysco Corp (Symbol: SYY) $78.82 $82.83 5.09% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. South Jersey Industries Inc (Symbol: SJI) 5.63% 16.89% 22.52% Chevron Corporation (Symbol: CVX) 4.96% 8.26% 13.22% ABM Industries, Inc. (Symbol: ABM) 1.51% 6.11% 7.62% Sherwin-Williams Co (Symbol: SHW) 0.93% 6.07% 7% Sysco Corp (Symbol: SYY) 2.28% 5.09% 7.37% Another consideration with dividend growth stocks is just how much the dividend is growing. South Jersey Industries Inc (Symbol: SJI) $1.166 $1.196 2.57% Chevron Corporation (Symbol: CVX) $4.86 $5.16 6.17% ABM Industries, Inc. (Symbol: ABM) $0.725 $0.745 2.76% Sherwin-Williams Co (Symbol: SHW) $4.73 $5.67 19.87% Sysco Corp (Symbol: SYY) $1.62 $1.8 11.11% These five stocks are part of our full Dividend Aristocrats List. |
29333.0 | 2021-03-19 00:00:00 UTC | Have ABM Industries Incorporated (NYSE:ABM) Insiders Been Selling Their Stock? | ABM | https://www.nasdaq.com/articles/have-abm-industries-incorporated-nyse%3Aabm-insiders-been-selling-their-stock-2021-03-19 | nan | nan | Anyone interested in ABM Industries Incorporated (NYSE:ABM) should probably be aware that the Senior VP, Dean Chin, recently divested US$145k worth of shares in the company, at an average price of US$50.60 each. That sale was 18% of their holding, so it does make us raise an eyebrow.
ABM Industries Insider Transactions Over The Last Year
In fact, the recent sale by Dean Chin was the biggest sale of ABM Industries shares made by an insider individual in the last twelve months, according to our records. So we know that an insider sold shares at around the present share price of US$50.26. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).
In the last year ABM Industries insiders didn't buy any company stock. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
NYSE:ABM Insider Trading Volume March 19th 2021
I will like ABM Industries better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Does ABM Industries Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that ABM Industries insiders own 0.5% of the company, worth about US$16m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Does This Data Suggest About ABM Industries Insiders?
Insiders haven't bought ABM Industries stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 5 warning signs for ABM Industries you should know about.
But note: ABM Industries may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | ABM Industries Insider Transactions Over The Last Year In fact, the recent sale by Dean Chin was the biggest sale of ABM Industries shares made by an insider individual in the last twelve months, according to our records. Anyone interested in ABM Industries Incorporated (NYSE:ABM) should probably be aware that the Senior VP, Dean Chin, recently divested US$145k worth of shares in the company, at an average price of US$50.60 each. In the last year ABM Industries insiders didn't buy any company stock. | ABM Industries Insider Transactions Over The Last Year In fact, the recent sale by Dean Chin was the biggest sale of ABM Industries shares made by an insider individual in the last twelve months, according to our records. In the last year ABM Industries insiders didn't buy any company stock. Does ABM Industries Boast High Insider Ownership? | ABM Industries Insider Transactions Over The Last Year In fact, the recent sale by Dean Chin was the biggest sale of ABM Industries shares made by an insider individual in the last twelve months, according to our records. In the last year ABM Industries insiders didn't buy any company stock. NYSE:ABM Insider Trading Volume March 19th 2021 I will like ABM Industries better if I see some big insider buys. | ABM Industries Insider Transactions Over The Last Year In fact, the recent sale by Dean Chin was the biggest sale of ABM Industries shares made by an insider individual in the last twelve months, according to our records. In the last year ABM Industries insiders didn't buy any company stock. But note: ABM Industries may not be the best stock to buy. |
29334.0 | 2021-03-12 00:00:00 UTC | Validea Joel Greenblatt Strategy Daily Upgrade Report - 3/12/2021 | ABM | https://www.nasdaq.com/articles/validea-joel-greenblatt-strategy-daily-upgrade-report-3-12-2021-2021-03-12 | nan | nan | The following are today's upgrades for Validea's Earnings Yield Investor model based on the published strategy of Joel Greenblatt. This value model looks for companies with high return on capital and earnings yields.
BIODELIVERY SCIENCES INTERNATIONAL, INC. (BDSI) is a small-cap growth stock in the Biotechnology & Drugs industry. The rating according to our strategy based on Joel Greenblatt changed from 0% to 80% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: BioDelivery Sciences International, Inc. is a specialty pharmaceutical company. The Company develops and commercializes, either on its own or in partnerships with third parties, applications of approved therapeutics to address unmet medical needs using drug delivery technologies. The Company develops pharmaceutical products aimed principally in the areas of pain management and addiction. The Company's products utilize the BioErodible MucoAdhesive (BEMA) drug delivery technology, a small, erodible polymer film for application to the buccal mucosa (the lining inside the cheek). The Company's United Sates Food and Drug Administration (FDA) approved product, ONSOLIS (fentanyl buccal soluble film), as well as its approved products BUNAVAIL (buprenorphine and naloxone buccal film) buccal film and BELBUCA (buprenorphine) buccal film, utilize BEMA technology.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
EARNINGS YIELD: NEUTRAL
RETURN ON TANGIBLE CAPITAL: NEUTRAL
FINAL RANKING: FAIL
Detailed Analysis of BIODELIVERY SCIENCES INTERNATIONAL, INC.
Full Guru Analysis for BDSI
Full Factor Report for BDSI
ABM INDUSTRIES, INC. (ABM) is a mid-cap growth stock in the Business Services industry. The rating according to our strategy based on Joel Greenblatt changed from 50% to 90% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: ABM Industries Incorporated is a provider of integrated facility solutions. The Company operates through five segments: Janitorial, Facility Services, Parking, Building & Energy Solutions, and other. Its Janitorial segment provides a range of cleaning services for commercial office buildings, data centers, educational institutions, government buildings, health facilities, industrial buildings, retail stores, sport event facilities and transportation hubs. Its Facility Services segment provides onsite mechanical engineering and technical services and solutions relating to a range of facilities and infrastructure systems. Its Parking segment provides parking and transportation services. Its Building & Energy Solutions segment provides energy solutions; electrical; heating, ventilation and air conditioning; lighting, and other general maintenance and repair services for clients. Its other segment provides facility solutions to airlines and airports.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
EARNINGS YIELD: NEUTRAL
RETURN ON TANGIBLE CAPITAL: NEUTRAL
FINAL RANKING: PASS
Detailed Analysis of ABM INDUSTRIES, INC.
Full Guru Analysis for ABM
Full Factor Report for ABM
SURFACE ONCOLOGY INC (SURF) is a small-cap value stock in the Biotechnology & Drugs industry. The rating according to our strategy based on Joel Greenblatt changed from 0% to 90% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Detailed Analysis of BIODELIVERY SCIENCES INTERNATIONAL, INC. Full Guru Analysis for BDSI Full Factor Report for BDSI ABM INDUSTRIES, INC. (ABM) is a mid-cap growth stock in the Business Services industry. Company Description: ABM Industries Incorporated is a provider of integrated facility solutions. Detailed Analysis of ABM INDUSTRIES, INC. Full Guru Analysis for ABM Full Factor Report for ABM SURFACE ONCOLOGY INC (SURF) is a small-cap value stock in the Biotechnology & Drugs industry. | Detailed Analysis of BIODELIVERY SCIENCES INTERNATIONAL, INC. Full Guru Analysis for BDSI Full Factor Report for BDSI ABM INDUSTRIES, INC. (ABM) is a mid-cap growth stock in the Business Services industry. Detailed Analysis of ABM INDUSTRIES, INC. Full Guru Analysis for ABM Full Factor Report for ABM SURFACE ONCOLOGY INC (SURF) is a small-cap value stock in the Biotechnology & Drugs industry. Company Description: ABM Industries Incorporated is a provider of integrated facility solutions. | Detailed Analysis of BIODELIVERY SCIENCES INTERNATIONAL, INC. Full Guru Analysis for BDSI Full Factor Report for BDSI ABM INDUSTRIES, INC. (ABM) is a mid-cap growth stock in the Business Services industry. Company Description: ABM Industries Incorporated is a provider of integrated facility solutions. Detailed Analysis of ABM INDUSTRIES, INC. Full Guru Analysis for ABM Full Factor Report for ABM SURFACE ONCOLOGY INC (SURF) is a small-cap value stock in the Biotechnology & Drugs industry. | Company Description: ABM Industries Incorporated is a provider of integrated facility solutions. Detailed Analysis of BIODELIVERY SCIENCES INTERNATIONAL, INC. Full Guru Analysis for BDSI Full Factor Report for BDSI ABM INDUSTRIES, INC. (ABM) is a mid-cap growth stock in the Business Services industry. Detailed Analysis of ABM INDUSTRIES, INC. Full Guru Analysis for ABM Full Factor Report for ABM SURFACE ONCOLOGY INC (SURF) is a small-cap value stock in the Biotechnology & Drugs industry. |
29335.0 | 2021-03-10 00:00:00 UTC | ABM Industries Inc (ABM) Q1 2021 Earnings Call Transcript | ABM | https://www.nasdaq.com/articles/abm-industries-inc-abm-q1-2021-earnings-call-transcript-2021-03-10 | nan | nan | Image source: The Motley Fool.
ABM Industries Inc (NYSE: ABM)
Q1 2021 Earnings Call
Mar 10, 2021, 8:30 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Greetings. Welcome to ABM Industries First Quarter 2021 Earnings Call.
[Operator Instructions]
I will now turn the conference over to Susie Kim, Vice President of Investor Relations and Treasurer. Thank you. You may begin.
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Susie Kim -- Treasurer & Vice President of Investor Relations
Thank you all for joining us this morning. With us today are Scott Salmirs, our President and Chief Executive Officer and Earl Ellis, our Executive Vice President and Chief Financial Officer. We issued our press release yesterday afternoon, announcing our first quarter fiscal 2021 financial results. A copy of this release and an accompanying slide presentation can be found on our corporate website.
Before we begin, I would like to remind you that our call and presentation today contain predictions, estimates and other forward-looking statements. Our use of the words estimate, expect and similar expressions are intended to identify these statements. These statements represent our current judgment of what the future holds. While we believe them to be reasonable, these statements are subject to risks and uncertainties that could cause our actual results to differ materially. These factors are described in a slide that accompanies our presentation as well as our filings with the SEC. During the course of this call, certain non-GAAP financial information will be presented. A reconciliation of those numbers to GAAP financial measures is available at the end of the presentation and on the company's website under the Investor tab.
I would now like to turn the call over to Scott.
Scott Salmirs -- President and Chief Executive Officer
Thanks, Susie. Good morning and thank you all for joining us today to discuss our first quarter results. As you read in yesterday's press release, 2021 is off to a tremendous start. Total revenue was approximately $1.5 billion, representing a 7.5% decline versus last year, which exceeded our expectation and reflects continued sequential improvement. As anticipated, our Aviation segment remains the primary driver behind the revenue decrease. On both the GAAP and an adjusted basis, earnings grew by a 160% or more year-over-year. GAAP continuing EPS grew to a $1.10 per share or $1.01 per share on an adjusted basis.
Adjusted EBITDA margins expanded more than 400 basis points to 8.3% compared to last year. Anchoring these results was elevated demand for higher margin Work Orders for virus protection as well as our EnhancedClean services which are longer term in nature. Effective labor management continued to be a lever for profitability. As you may remember, the majority of our contracts are performance based, so any efficiencies we find in staffing as occupancy drops or schools are in a hybrid situation [Phonetic] in order to our benefit. This is the advantage of having a flexible labor model. Earl, will discuss our segments in more detail, but overall, our industry group drivers are similar to what we saw during the balance of last year.
Not surprisingly our Aviation and Technical Solutions segments were challenged by the pandemic due to decreased global travel and limited site access for retrofit projects and educational facilities. Education as the segment though grew top and bottom line during the quarter, which shows how well our team has adapted operationally to the hybrid learning system and Business & Industry and Technology & Manufacturing are still strong outperformers. We've been able to offset COVID related revenue compression with higher margin Work Orders, EnhancedClean contracts and labor management.
We're now almost at the one-year mark since the start of the pandemic and I've just summarized our fourth consecutive quarter of strong results. This sustained performance suggests that we have reached a level of consistency in our results and stabilization across our client portfolio. Let me now provide some thoughts on where we believe the operating environment is headed, especially in light of our full year guidance. Before I dive into what momentum to normalcy looks like in 2021, I want to underscore that normalcy does not imply less vigilance around virus protection. Over the past several months, there have been countless news and scientific journals reminding us that COVID-19 and its after effects will continue to linger over the foreseeable future. Many believe it will be a permanent fact of life with people getting regularly vaccinated similar to how we handle flu vaccinations. We are so enthusiastic that vaccine rollouts are under way across the country. Most importantly, the vaccines will save lives, but the rollouts will also lead to momentum back to work, school, travel and attending entertainment venues. However vaccine rollouts have not been uniformed on a state by state basis nor have stayed policies on masking, public gatherings and other factors that impact infections and new cases.
These factors as well as the ongoing discovery of new variants highlight how societies need to respond to COVID-19 on an elevated level, will not end in the near-term. This is why it's so critical for us to partner with our clients and assess their evolving needs and engage our expert advisory panel. In B&I, the vaccines will spur momentum back to work, which for us means a return of more traditional janitorial work as well as the continuation of disinfecting given higher occupancy. Currently, average occupancy across the country is approximately 15%. We anticipate this could increase to 25% by Labor Day and grow to 50% plus through calendar year-end. As clients begin to plan their returns, they are focusing on building trust in their facilities through health and safety protocols, rigor around cleaning, disinfecting and especially physical spacing will be incorporated into their plans. For this reason, we do not anticipate a near-term reduction space utilization across commercial real estate, especially with Class A buildings and blue-chip clients.
For a sector like education, we believe the hybrid models will be in effect for at least the rest of the school year. Soon, if not already, institutions will start planning for the fall 2021 semester with a push for more in-person learning in the K through 12 segment and higher ed. How this unfolds could vary by region. We should have a better line of sight when we speak to you after Q2 earnings. And I'm sure as vaccine adoption continues to expand, there's probably no sector more poised for a robust volume recovery than Aviation. We are definitely hearing about pent-up demand for personal travel and minimally a modest return of business travel. For ABM, our business portfolio consists of both airlines and airports. As airports were opened during the pandemic, operations in areas like terminal cleaning, transportation and shuttle service enabled us to mitigate reduced volumes on the airline side. And ultimately, this diversification helped us breakeven last year, which was a major achievement.
On the airline side, current travel volumes are approximately 50% of pre-COVID levels. Assuming vaccine rollouts gain traction, we believe we could see that grow moderately by year-end. As both airlines and airports see increased traffic, the need for disinfection, virus protection and EnhancedClean will grow.
On an enterprise level, we conducted a Pulse Survey of approximately 200 clients last month that largely aligned to our own full year expectations. Most respondents are expecting their facilities to more fully reopen and their companies to be endorsing reoccupancy in varying forms by September and they plan to continue taking multiple measures to protect spaces against COVID-19 as they reopen primarily in the areas of surface and air disinfection. And even with the increase in flexible work schedules and work from home protocols, the vast majority of our clients say that they expect the total amount of space utilization to remain largely the same. Now, the size of our survey, it's just a subset of our client base, but it supports what we are hearing more broadly as we communicate with our customers on their future plans. It also speaks to our confidence in providing full year guidance today. For fiscal 2021, we are introducing full year guidance of earnings per diluted share of $2.85 to $3.10 or $3.00 to $3.25 on an adjusted basis. Our outlook for adjusted EBITDA margins is 6.6% to 7%, which compares to 6% last year. We also expect to return to growth by the second half of this year and consistent demand for high margin Work Orders and EnhancedClean services through year-end. We also anticipate retaining most of our labor arbitrage through year-end.
Our success will not translate to complacency. Based on how the pandemic has changed our trajectory, we have been capitalizing on our momentum to elevate our brand and business. At the end of February, we launched ABM's first national TV commercial. It was a celebratory moment for the entire firm and we could not be proud of. If you've not seen it on CNBC or Bloomberg TV, you can find it on our IR website today.
As we discussed last year, we are going to be investing in our clients, team members, and infrastructure. We're focused on providing technology and data analytics capabilities to enhance client and team member experiences. We are also prioritizing areas like talent development to further empower our people and create even more consequential relationships with our clients. We are committed to building upon our strong culture and fostering a community of belonging where team members feel connected, valued, and inspired. This reinforces our mission and vision as an organization and will have significant long-term commercial outcomes for us. Internal initiatives such as our culture and inclusion council are dedicated to driving meaningful social change and cultivating an inclusive environment for everyone at ABM and we are taking active steps to turn this vision into reality. I'm excited to share that we have entered into partnerships with organizations that are focused on building a more equitable society. ABM has made a commitment to support the NAACP Legal Defense and Educational Funds, the Hispanic Scholarship Fund, the Afterschool Alliance, and the Thurgood Marshall College Fund. We are partnering with these organizations in an effort to make a difference in the areas of advocacy and civil rights, basic human needs, education, and workforce development.
Before I turn the call over to Earl, I wanted to look back at this time last year during our first quarterearnings callof 2020. We were just starting to discuss the coronavirus and its impact on the economy. At that time I reiterated how our diversified portfolio coupled with our nimble operating model or hallmarks of our long-term success over the past 110 years. Our results over the past 12 months has proven this beyond a doubt and with our solid liquidity and leverage, we are better positioned than ever to pursue growth and profitability that will unlock even greater shareholder value. I want to thank our employees for another quarter of absolutely incredible execution, particularly those who were impacted by the recent winter storms in the South.
The dedication of the ABM team continues to fuel our performance quarter-after-quarter. We have a culture like no other in our industry. In addition to our team members, I'd like to thank our Board of Directors, including our newest Director, Quincy Allen for their guidance and encouragement. I also thank you, our analysts and shareholders, for your support during a time when the environment was particularly opaque. I'm proud that our results have been the greatest proof point of our resilience, agility and excellence.
I'll now turn the call over to Earl.
Earl Ellis -- Executive Vice President and Chief Financial Officer
Thanks Scott, and good morning, everyone. Let me start by thanking all of my fellow ABM team members for the warm welcome I've experienced since joining the organization. Today marks my 100th day at ABM and my early impressions about the organization's drive to collaborate and execute have only grown. As I continue to evaluate and assess our business needs, my main area of focus will be on helping to determine the appropriate enablers for both strategic growth and continuous improvement. As I will discuss in more detail shortly, our strong results over the past several quarters coupled with our leadership position in the marketplace provides us with great opportunity to invest in our future growth potential. I look forward to finalizing our thoughts on areas such as our internal investment strategy and sharing with all of you over the course of the year.
Now onto the results. Revenue for the quarter was $1.5 billion, a decrease of 7.5% compared to last year. The decrease in revenue reflects the continued impact COVID-19 has had across our business segments. As a reminder, the pandemic had not yet impacted operations significantly until our second quarter last year and as such this quarter reflects the full year-over-year impact. Partially offsetting this revenue decline was the ongoing demand for higher margin disinfection related Work Orders and EnhancedClean services.
Work Orders were particularly strong within our Business & Industry and Technology & Manufacturing industry groups. On a GAAP basis, our income from continuing operations was $74.6 million or $1.10 per diluted share compared to $27.9 million or $0.41 last year. In addition to our strong operational performance, the increase versus last year was driven by favorable development in prior year self-insurance adjustments. We saw an $11.4 million benefit this year compared to $6.6 million in the first quarter of fiscal 2020. Additionally, we saw our second consecutive quarter of current year positive insurance trend recording a benefit of approximately $3 million. On an adjusted basis, income from continuing operations for the quarter increased to $68.3 million or $1.01 per diluted share compared to $26.2 million or $0.39 last year.
Our GAAP and adjusted earnings growth versus last year continued to be driven by significant increases in higher margin Work Orders and EnhancedClean services. As our clients have incorporated health and hygiene services such as disinfection into their operation at higher levels, we continue to experience higher margin as a result of direct labor efficiencies, as our operators proactively manage the deployment of labor commensurate with COVID-19 related revenue decline. Additionally, results also reflect one less working day, which amounted to labor expense savings of approximately $6 million. Other items such as corporate discretionary expense, amortization, and interest were also lower compared to last year. These results were partially offset by our planned infrastructure and organizational investment in areas such as IT. However, I want to note that our investment spend for the quarter was approximately $4 million, which was lower than originally anticipated. During the quarter, we generated adjusted EBITDA of approximately $124 million for a margin rate of 8.3% compared to $68.8 million or 4.3% last year.
I will now discuss our segment results. As I referenced earlier, these results reflect the ongoing impact of COVID-19, which has resulted in revenue compression across our services. As Scott discussed, our diversified segment structure has been a strength for us during the pandemic and each segment has been impacted by the pandemic in different ways, both positively and negatively.
In most cases though with perhaps the exception of Technical Solutions, our segment results reflect some combination of a mix shift toward higher Work Orders and EnhancedClean services. Labor modulation on lower service demand as well as operational investments in areas such as EnhancedClean. B&I revenue was $809.4 million, which was down just $11.5 million or 1.4% versus last year. The parking and sports and entertainment businesses were the predominant drivers of the revenue decline due to the ongoing pandemic. Almost entirely offsetting this decline was increased demand for higher margin Work Orders and EnhancedClean services at our national accounts and certain client in corporate sectors such as financial institutions. Operating profit for the quarter reflected this more favorable mix of business resulting an $85.7 million or a margin of 10.6% compared to last year's $38.2 million and 4.7% respectively.
Technology & Manufacturing remains one of our most resilient segments. T&M produced solid results for the quarter as it has since the beginning of the pandemic. The segment reported revenue of $249.2 million, an increase of 6.5% versus last year with an operating profit of $26.9 million or a margin rate of 10.8%. Work orders and EnhancedClean services drove demand for T&M particularly within the industrial manufacturing, pharmaceuticals, and high-tech sectors. We also experienced growth with our logistic clients as we supported them during the peak holiday season. Our Education segment grew revenues of $209.4 million with operating profit of $21.5 million or 10.2% margin. We believe these results reflect some stabilization as schools have continued the hybrid learning model that has been in effect since the back half of last year. Performance was primarily attributable to direct labor management due to modified staffing levels and other expense savings as well as demand for disinfection and COVID related Work Orders. Looking ahead, we anticipate some reinstitution of a traditional selling season in 2021, which did not really exist last year due to the pandemic. We continue to monitor how schools are going to evolve their approach to teaching in the current environment particularly as vaccination rollouts progress.
Aviation reported revenue of approximately $143 million with operating profit of $3.2 million. As anticipated, this segment remain most impacted by COVID-19 and its effect on global travel. The quarter saw a modest sequential increase in travel due to the holiday, but also reverted quickly due to lockdowns in areas such as the UK. We continue to operate according to flight and passenger demand, providing higher tech services such as electrostatic spraying as we managed variable costs and expenses on a real time basis to match demand. Finally, Technical Solutions reported revenue of $113 million versus $142 million last year. This decline was driven by site access issues as clients such as an education continue to limit traffic into their facilities in order to protect administrative staff, teachers and students. However backlog remains healthy above $150 million and we remain focused on churning through these projects as soon as possible. Operating profit was $6 million or 5.3% on a margin basis.
Turning to cash and liquidity. We reported positive cash flow during the first quarter despite this traditionally being a cash flow negative period. This even includes the deferral of approximately $31 million in payroll taxes from the CARES Act. We generated more than $45 million in cash flow from operations and free cash flow of approximately $39 million for the quarter.
Our strong performance enabled us to end this quarter with total debt including standby letters of credit of $851 million and a bank adjusted leverage ratio of 1.8 times. Additionally, we ended the quarter with cash and cash equivalents of $378 million. Given the consistency of our leverage and cash position over the last several quarters, we believe we have reached a point of stability both operationally and financially. As a result, we are evaluating our capital allocation priorities. In addition to organic investments in our business, we are also exploring the M&A market for potential targets to drive growth and build on our current momentum. While remaining cognizant of our reentry into M&A, we will also consider share repurchases opportunistically. We currently have approximately $145 million remaining in our authorized share repurchase program and we'll balance any potential activity with our M&A efforts to ensure maximum flexibility.
During the quarter we paid our 219th consecutive quarterly cash dividend of $0.19 per common share for a total distribution of $12.7 million to shareholders. And as stated in our earnings release, our Board of Directors approved our 220th consecutive quarterly cash dividend.
Now turning to our guidance outlook. We are introducing a fiscal 2021 GAAP guidance outlook range of $2.85 to $3.10 and on an adjusted basis $3.00 to $3.25 per share. Scott shared with you some great context from an operating perspective that supports our guidance. So let me now provide some additional assumptions behind our guidance. Given our performance during the first quarter, we believe revenue will continue to improve sequentially with a return to growth in the back half of the year. And as growth improves and turn positive we will have to staff back up accordingly. Therefore there may be a partial reduction in the level of labor efficiencies we have experienced over the past year, but make no mistake, we do expect to retain a portion of these savings based on new opportunities and labor management practices we have adopted during COVID. And as it relates to higher margin Work Orders and EnhancedClean services, we do not anticipate a material slowdown in demand for the balance of the fiscal year. We expect our investments to pick up throughout the remainder of the year as we support the strategic initiatives namely in our IT transformation. On a year-over-year basis, we do expect an increase in corporate expenses for the year although timing may vary from quarter-to-quarter as you saw in the first quarter.
Additionally, as a reminder, we undertook furlough and expense reduction efforts during the third quarter of last year. And as such, expect to see year-over-year increase in expenses as we have resumed a portion of those expenditures. We are still in the planning and design phase of our technology roadmap and we will update you as we finalize our plans. I'd also like to remind everyone that we will see an extra working day in Q2 and one less working day in Q3. Each working day should represent approximately $6 million of labor expense similar to Q1.
Moving to taxes. We continue to expect an effective tax rate of approximately 30% for 2021. This tax rate does not include discrete tax items such as the work opportunity tax credit and the tax impact of stock-based compensation awards. At the end of December, WOTC was formally extended by Congress through 2025 and current estimate suggest a $5 million or $0.07 impact on 2020. And finally, while we are not guiding to free cash flow, until we can finalize the impact of our tech transformation on capital expenditures. I want to express my enthusiasm for the strong start to the year. Given our strong cash flow performance to-date, we believe we'll be able to achieve a range above our historical $175 million to $200 million and look forward to updating you as we finalize our longer-term plan.
In closing, we're excited about our performance for the quarter as well as our outlook for the year and we look forward to updating you on our continued progress next quarter. Operator, we are now ready for questions.
Questions and Answers:
Operator
[Operator Instructions]
Our first question is from Sean Eastman with KeyBanc Capital Markets. Please proceed.
Sean Eastman -- KeyBanc Capital Markets -- Analyst
Hi, team. Certainly a strong start to the year. Pretty impressive. I guess along those lines. My first question is, if we just look at the annual guidance, you guys are off to a head start here with the first quarter, implying around over 30% of earnings in the first quarter versus kind of a high-teens number on average over the last 10 years in the first quarter. So I'm just curious where you think you might need to have some conservatism in there given this head start, I mean is it really just the labor efficiency dynamic as revenue recovers is it the technology investments ramping up. Any color around that cadence would be helpful?
Earl Ellis -- Executive Vice President and Chief Financial Officer
Yeah, I mean, I think you hit it right on the head and I think predominantly. We have to remember it's early, right. We just finished Q1 and we have some nice line of sight into Q2 but it's early in the year and we want to be responsible, right. So I think we always have an opportunity as we go along to update if we need to Sean. But for now I think we feel real comfortable where we are.
Sean Eastman -- KeyBanc Capital Markets -- Analyst
Okay, got it. And the capital allocation comments are interesting just around the stability and where leverage is. I'm just curious what an acquisition could look like for you guys. Maybe it's early there as well, but just a bit of a flavor for what you guys are looking at what kind of supplement to the organic growth recovery you envision, it would be helpful to understand that?
Earl Ellis -- Executive Vice President and Chief Financial Officer
Sure, I mean, look for us we're looking in two primary areas. First, building into our core, which is janitorial and if anything COVID-19 has really elevated that core. So that's something that we're excited to look at, and then also our ATS group, we love that division. We love where society is heading toward energy efficiency, sustainability, electric vehicle charging. These are all our major work streams there. So we've talked about in the past that we want to build our geographic footprint across the US. So I could see us doing some fill-in acquisitions there as well. So that's kind of where our focus is at the moment, those two areas, core janitorial and ATS.
Sean Eastman -- KeyBanc Capital Markets -- Analyst
Okay. And then one last quick one from me. On ATS I mean you guys have exposure to EV charging, you have exposure to energy efficiency and buildings. Two clear priority areas from the new administration. I mean, have you seen the ATS bid pipeline firm or is that sort of a stay tune too early.
Scott Salmirs -- President and Chief Executive Officer
Look, we have a really strong pipeline and a strong backlog. And I think the new administration's attitudes toward the things I just talked about sustainability and energy management are great and it really goes beyond the administration, right. It really goes to society, right. And it's just -- it's playing into all the right trends and if you remember the ATS group also there's a fair amount of work in educational facilities and you all know how strained budgets are for schools K through 12 and frankly higher ed and so we come in with really good energy saving solutions and you've heard us talk before about proof points of literally saving teachers jobs, saving after school programs. So we think that there is going to be good momentum toward selling energy projects into schools as well. So everything is pointing up for us in ATS. It's just for us right now the impediment has been access to facilities right with COVID and we suspect we'll see a lot more traction in the back half of the year as the vaccines rollout and also as schools close, we'll have a chance to get access and start churning that backlog and turning it into real revenue and the number of backlog have signed contracts. So we're super confident. We have a very strong backlog. We just have to turn it into revenue by actually starting the project.
Sean Eastman -- KeyBanc Capital Markets -- Analyst
Okay. Thanks, Scott. I appreciate it. I'll turn it over.
Scott Salmirs -- President and Chief Executive Officer
Thanks, Sean.
Operator
Our next question is from Andy Wittmann with Robert W. Baird. Please proceed.
Andy Wittmann -- Robert W. Baird -- Analyst
Great, and good morning, everyone. Thank you for taking my questions. I was just hoping to just understand a little bit more again this quarter the driver of the year-over-year margin improvement. Last quarter I guess you said it was kind of roughly half mixed benefit from TEG and EnhancedClean and the other half was the benefit of labor management. Was there any different in the character of that particularly considering that some of those corporate investments also came in and we're going to offset the other way?
Scott Salmirs -- President and Chief Executive Officer
Thanks, Andy for the question. You're spot on. Very similar to what we saw last quarter, this year-over-year uptick that we're seeing in margin is driven by those two components. So firstly the labor efficiencies that we've been receiving as well as the higher margins associated with both Work Orders and EnhancedClean services and that really attributed to 400 basis points of the year-over -year accretion really again split 50-50. In addition to that, we saw the one less working day, which attributed to about 40 basis points, which was offset by incremental investments that you'll see in the corporate expense line.
Andy Wittmann -- Robert W. Baird -- Analyst
Got it. Okay. Well given that and I appreciate the physical occupancy data that you guys shared the 15 going to 25 by Labor Day. I guess you said and then by calendar year-end getting a lot more normal than that. I mean that is a recovery in physical occupancy of the space, but I wouldn't say that's any kind of sharp snapback or major change very quickly and in fact that Labor Day represents most of the rest of your fiscal year. So given that and just doing some math on your guidance here, using your EPS guidance and some of the other known quantities here, it looks like the balance of the year, EBITDA margins are down pretty significantly not down up year-over-year up to historic levels, down sequentially from a great performance in 1Q is what I mean. I'm calculating something in the mid '60s for the balance of the year. So that's a pretty big change. So I was hoping that you could give a little bit more meat on the bone other than kind of what you said or in addition to what you said to get us comfortable with the fact that this is the right margin level to be thinking about for the balance of the year.
Scott Salmirs -- President and Chief Executive Officer
Look again, we want to be responsible, Andy. We are and we look at the remainder of the year and we do think there is going to be momentum back, which will cause us to lose some of the labor efficiencies we get in the hybrid model predominantly in commercial as this momentum back to the office. So that and that's it and then we are going to be starting the corporate investments. We had a slow start at Q1 because we wanted to be super cautious with -- we wanted to be super cautious with the pandemic still remember our quarters like November, December, January right. So we will be starting to build in those investments in our strategy and IT area and it's all for long-term growth. This we are going into a growth mode ABM and we need to support it with those investments.
Andy Wittmann -- Robert W. Baird -- Analyst
Got it. I have just one last question to follow up on kind of on the fundamentals of the business and demand. Last year I think it was defined by very, very low customer loss, very high retention rate, just kind of wanted to hunker down not change anything, make sure that they did this, you guys have talked a lot about how ABM has been well positioned with your processes and your leadership in the industry as the ability to take share. I was wondering, Scott, if you could talk a little bit about the dynamics now that we're starting to think about reopen, are there more customers looking to switch providers going forward now that the world is a little bit more stable and just given that -- as they look to switch are they also looking to bake into the base contract, some of the Work Order that becomes so consistent as part of what their processes, you're offering EnhancedClean is basically the deeper level of cleaning, but our customers looking to switch and if they switch are they looking to bake in more content and what are the implications of that if they do on margins. Thanks. Sorry there's a lot of questions, but you can talk about that. Thanks.
Scott Salmirs -- President and Chief Executive Officer
Yeah, I got the essence of this. Sure, look, Q1 was a great retention for us. We were in that 92%, 93% zone. And I think earlier on, we were more cautious about a lot of rebids happening. I think certainly if there is one area probably the education because the one thing we know there is the school budgets still all constrained right and they'll be looking for opportunities. So we will expect to see a higher level of bids and education, but there's a plus side to that too, right, because all this other work is going to get bit out that we don't have, right, and we do love our platform now with our EnhancedClean. So where we may get a little pressure on retention. We may pick it up on the sales side and with EnhancedClean it's not in the scope of work and we don't as things get rebid for the first couple of years. I'm not so sure how robust the bidding activity is going to be and what makes me think about that Andy is not only we talk to clients, but on top of that so many of our clients have this space needs in flux in terms of how they're going to lay out the floors for distancing and the different use cases that are going to have when people come back.
So I don't think there's going to be this rush to go bid right away until they understand the occupancy. But even still when it does get baked in over the next couple of years, I don't think we're going to have too much of the deterioration on margin because if you think about EnhancedClean, it is the people are better trained because they're using different types of chemicals, they're using expensive equipment. So we believe between that and all the resources we're putting in with our advisory panel that we're going to be able to maintain a good portion of our margins when eventually does get but again. I just don't think it's going to be immediate because there's too many other drivers that are going to inhibit them from having this all out bidding.
Andy Wittmann -- Robert W. Baird -- Analyst
All right. Thank you for the comments. Have a good day.
Scott Salmirs -- President and Chief Executive Officer
You too.
Operator
Our next question is from Sam Kusswurm with William Blair. Please proceed.
Sam Kusswurm -- William Blair -- Analyst
Good morning Scott and Earl. Hope you are both doing well.
Scott Salmirs -- President and Chief Executive Officer
Good morning.
Earl Ellis -- Executive Vice President and Chief Financial Officer
Good morning.
Sam Kusswurm -- William Blair -- Analyst
I'll add another one to the margin side. Do you think that 2021 adjusted EBITDA margin is where profitability kind of peaked out for you guys. I know you mentioned some cost will be coming back throughout the year here. Basically, I'm curious if your long-term margin outlook of 5.5%, 6% is kind of irrelevant now because the business is changing. 6% plus the new normal given customers on this high margin virus protection going forward.
Susie Kim -- Treasurer & Vice President of Investor Relations
Yeah, I mean, that's a good question. So I think for us, if you remember pre-COVID that 5.5% to 6% zone was where we were trying to gravitate to over the next two years or three years. But certainly we believe that COVID and kind of the virus awareness in society has squarely put us into that 5.5% to 6% zone and we're going to be thinking about investing into our business over the next five years. We're going to do the things that we need to do to break out of that zone that is our ultimate goal, we always want to overachieve. But I think for now what we're really comfortable saying is we start we've landed into that zone a couple of years ahead of where we want it to be. And the next phase we're finishing up 2020 vision now. I think the next phase of our five year journey is going to outline the path to get out of that zone.
Sam Kusswurm -- William Blair -- Analyst
Great. That's helpful commentary. Maybe switching gears I have a quick one on B&I that I assume there is a lot of disinfection work that must be done preparation for some of these folks going back to work this fall. I'm kind of wondering as far as early to your guidance, are you contemplating a significant step up in B&I related reopening revenue in your fiscal fourth quarter this year?
Scott Salmirs -- President and Chief Executive Officer
Yes so we do believe there will be increased volume, as there is a return to work and the offsetting factor to that is we're going to have to step up, right. So we look at those two in conjunction with one another, but there will definitely be elevated volumes as people return back. But if you remember like with our fiscal year we end October 31 and we think at that time we're going to be somewhere between that 25% to 50% of occupancy. So it's probably going to be more like '22 when you're going to have a robust return to the office, where those levels will be even elevated past what we'll see in '21.
Sam Kusswurm -- William Blair -- Analyst
Got you. Thanks for the answer guys.
Scott Salmirs -- President and Chief Executive Officer
Have a great day.
Operator
Our next question is from David Silver with CL King. Please proceed.
David Silver -- CL King -- Analyst
Yeah, hi, good morning. Thanks. Scott I wanted to follow-up maybe on one of your answers here regarding retention rates. So I mean historically you've been very clear about pursuing high retention rates on your annual contracts. I'm just wondering if you have any early data thus far like on a couple of things. First off, the six month EnhancedClean contracts. My sense is, a lot of those are coming up for renewal. And I'm just wondering if you have some early read on retention rates there and then maybe a more qualitative comment regarding the tag work or the Work Orders that you're seeing. So I mean very hard to generalize, but is there seemingly a customer strategy evolving where maybe they have a work order every couple of weeks or so or once a month to supplement the standard annual contract. So just some idea of the cadence there on EnhancedClean and the Work Orders? Thank you.
Scott Salmirs -- President and Chief Executive Officer
Yeah sure no problem. So look I think for us again it's been sustained, right and if you look at our Work Orders and EnhancedClean we did $150 million of that in the first quarter as compared to 300 million all of last year. So we're excited about that and then our renewals have been very strong on EnhancedClean so far, which is a really good time. But I think what was even more powerful for us is when we surveyed our clients, 90% of our clients said on reopening they're going to do the same, if not more virus-protection, which is pretty incredible and then take that to the next level 85% of our clients said when they look out two years past the pandemic or more, they're going to continue to be doing virus protection. So it kind of proves the thesis that we've been saying all along that on some in some extent pandora's box has been opened around virus protection and awareness and then confirm and not only through the survey results but as you can imagine we're constantly communicating with our clients about reopen plans and it just confirms what we're hearing in the survey. So really optimistic. Is that helpful?
David Silver -- CL King -- Analyst
Yeah, that's great. Just one quick one and then one strategic question, but the quick one would be on the CARES Act and I believe last year the CARES Act will allowed you to differ roughly I think 100 million or so of employment taxes. Can you just maybe remind me what, can you update us on how that is going, how that went in the first quarter and then maybe from a fiscal year '21 basis. Will any of that accumulated kind of deferral need to be repaid. So maybe the fiscal year '21 cash flow impact puts and takes on the CARES Act will be great. Thank you.
Earl Ellis -- Executive Vice President and Chief Financial Officer
Yeah, David, it's Earl. Let me address that. So if we start, if you look at the cash flow operations this quarter we landed at about $40 million, which if you think about Q1, this is probably the first time in recent history that Q1 is actually generated positive cash as opposed to actually being a net draw on cash. $31 million of that cash flow came from the CARES Act so if you look at what we did last year 130 and 131 this year, it's about $161 million that will be repaid in two half -- the first-half being next fiscal, which is really December at the end of December 2021 and then the following fiscal or the following fiscal, the balance of that amount.
David Silver -- CL King -- Analyst
Okay, all right, great. I appreciate that. And then last question would be more I guess just to it's a multi-tasking, question for you, Scott. But when I think in your company here. I think you have this big new opportunity or newish opportunity that you're moving aggressively to invest in and to exploit regarding the post-pandemic business environment and then are you also would say that within the last year, you've also initiated another significant kind of longer term strategic effort regarding your transformation programs. And I'm just wondering as you kind of steer the ship here, can those two very significant high priority efforts can they continue on without interruption is there some competition internally for resources, how does human resources view filling senior openings on one project or one effort versus the other? Just and of course your time to management attention. So how do you kind of manage I guess those parallel tracks on two high priority and frankly newer efforts relative to how your company has been positioned over the past several years. Thank you.
Scott Salmirs -- President and Chief Executive Officer
That's a good question I don't think they're out of line, to be honest, I think they all are online together into kind of one vision going forward. And the way I think about this we're going to have this work stream and investing into the business organically and that's the EnhancedClean enhanced facilities and continuing to build excellence around that. So you can have that but at on a parallel path that we're going to be investing in our tech, right, and part of the tech is infrastructure and that's kind of table stakes right getting your data right forming a framework around new technology, but that's really to accelerate and grow the business through client-facing technology, right. So we get stickier with clients and that client-facing technology can intersect with EnhancedClean, right in terms of tracking systems and dashboard. So I think that's really important and then also to accelerate the business, the technology is going to work toward workforce management getting our people more efficient, getting our people more data more touch points with our clients because we're informing them and enriching them with the data that we're capturing.
So I think it really aligns well and we will lay out in detail the next five years in the coming months. But we're really excited about our ability to invest in our people and to invest in technology and again it's just going to come together beautifully in online. So we're really excited to talk about it over the next couple of months.
David Silver -- CL King -- Analyst
All right. Just one final comment, but I did want to call out. I thought the slide deck that you put together for this call was exceptionally useful and helpful and the opportunity to go through at last night was an added plus. So thanks for the extra effort. I appreciate it.
Scott Salmirs -- President and Chief Executive Officer
That's great. Thanks.
Operator
And we do you have time for one more question. Our final question will be from Marc Riddick with Sidoti & Company. Please proceed.
Marc Riddick -- Sidoti & Company -- Analyst
Hi. Good morning, everyone.
Scott Salmirs -- President and Chief Executive Officer
Good morning, Marc.
Marc Riddick -- Sidoti & Company -- Analyst
So let me also echo the last comments the slide deck for those who haven't had a chance to see it so far. I thought was exceptional and had a lot of great detail on that. Really appreciate that. Really appreciate all the commentary that you've already given. But I wanted to touch a little bit on the investment commentary because in addition to the investments that you've talked about. I want to circle back to the idea that you've begun a national commercial campaign and I don't think that's a small thing for a company that's a century old for the first time have a commercial. So I was wondering if you can sort of talk a little bit about that thought process, what the branding opportunity that you see is and what it kind of means for ABM as well as what it means for EnhancedClean in general?
Scott Salmirs -- President and Chief Executive Officer
Sure. I mean, look, we were you can imagine the pride we had right to have a national TV commercial for a company like us and it was so well done and we get such great comments on it and I think it's multipurpose, right, Marc. Part of it is just the commercial side of it meaning the commercial business side of it and we're already seeing web traffic up over 10% just from the commercial, which is so that the payback is incredible. And just from a branding standpoint, it's just repositions our brand and elevates our brand and especially what we're doing with EnhancedClean and making sure people understand Marc that like we're in essential service with first responders and we even say like with healthcare professionals, they can even -- hospital can open till we've cleaned it right. So I think it's just so much for us on so many different levels, but it doesn't hurt when you get a pure financial payback and you start seeing web traffic up and that turning into actual business.
Marc Riddick -- Sidoti & Company -- Analyst
And then just to be clear the commercial hasn't been out for very long right, right, I mean when did that hit the air?
Scott Salmirs -- President and Chief Executive Officer
It was just been out for like two weeks, yeah.
Marc Riddick -- Sidoti & Company -- Analyst
I was sort of thinking about on top of the investment commentary that you've made. So as you sort of thinking through the technology investments or what have you. From a timing perspective I would imagine that some of that we'll see later this year and then flowing into next year and obviously you still got some big decisions to make around that, but is that a reasonable way to think about the technology spend that you have in front of you?
Earl Ellis -- Executive Vice President and Chief Financial Officer
Yes. So, Marc, just let me address that. So when we look at the technology spend -- part of it is that planning and design that we currently are investing against our future IT infrastructure, which again will start with a rollout of the ERP system across the enterprise. Again the decision right now we're not going to do that in kind of like a big bang approach, but rather will be a series of rollout. So presumably you could see some deployment at the end of this year and then flowing into FY'22.
Marc Riddick -- Sidoti & Company -- Analyst
Okay, that's helpful. And so the -- so one of the surprises I guess of the follow-ups the commentary around the acquisitions and looking at acquisitions as a more maybe more near-term potential use of cash and there may be some sort of thinking about and I appreciate you including the commentary on the prioritization of what you might be looking at with from an acquisition pipeline perspective. Is it too early to have begun to look at sort of what that pricing for those types of assets might look like or how should we think about that the potential range of opportunities that might be in front of you?
Scott Salmirs -- President and Chief Executive Officer
Yeah, it's probably a little early and different assets have different ranges right like the ATS stuff is a little bit more prizy than janitorial and it's because it's higher growth, higher margin, right. So I think we have to synthesize all that and there is other things that we take into consideration just besides multiple and pure financials, it's like, is there a strategic component to it like with ATS where I talked about expanding our footprint and filling in gaps that we don't have or that we do have rather around the country. So we put all those together and bake it into our analysis, but it's kind of early right now for us. But hopefully, we'll have more to report on soon.
Marc Riddick -- Sidoti & Company -- Analyst
Okay and then the last thing for me is a year ago EnhancedClean didn't exist and we were obviously in a different place, right. So I wanted to sort of get a sense of whether we begin to sort of look at longer term, what EnhancedClean to be and it seems as though there is a certain this going to be a certain flow based on the types of customers that you have, but it certainly seems to be encouraging from the survey data that you had in your slides and the like. I wanted to get a sense of that survey work and the feedback that you're getting how recent was that and do you get a sense that maybe some of the bigger picture issues like the stimulus plan like has -- is that beginning to be reflected back in the commentary that you're getting from customers. Thanks.
Scott Salmirs -- President and Chief Executive Officer
Yeah, I think that one of the biggest knock-on effects to this Marc has been the elevation of our brand, right, because you know what our competitors are doing a lot of the same stuff that we're doing, but they're basically coming in and saying we can electrostatic spray, right. Well, we could do that too, but when you take on the EnhancedClean program, you get a different level of training, you get signage with it, right, you get a different level of the way you communicate to clients, you can even have evidence based testing when we're done to show whether or not we've been successful in eradicating the COVID in the space. So and it all ends with kind of the proverbial seal in the window that says this facility has been EnhancedClean certified because you remember we talked about the fact that we put together an advisory panel. So it's like I think the biggest push about this Marc is that it kind of it separates us from the pack. It really differentiates us as we've talked about before, a lot of our competitors are small and regional companies, they don't have the resources that we have with the scale that we have with the supply chain. All those things are coming to floor now that we're in this pandemic and as really in order to our benefit.
Marc Riddick -- Sidoti & Company -- Analyst
Appreciate all the time. Thank you.
Scott Salmirs -- President and Chief Executive Officer
Thanks, Marc.
Operator
We have reached the end of our question-and-answer session. I would like to turn the conference back over to management for closing remarks.
Scott Salmirs -- President and Chief Executive Officer
Yeah. Thank you. I just want to thank everybody sort of being on the call and all the support and again want to thank our teammates for this incredible performance. And again culture like no other really enthusiastic and we look forward to being back in Q2 to update you. And in the meantime just stay safe and don't let your guard down, we're getting out of this. So let's continue on everybody. Thank you.
Earl Ellis -- Executive Vice President and Chief Financial Officer
Thank you.
Operator
[Operator Closing Remarks]
Duration: 59 minutes
Call participants:
Susie Kim -- Treasurer & Vice President of Investor Relations
Scott Salmirs -- President and Chief Executive Officer
Earl Ellis -- Executive Vice President and Chief Financial Officer
Sean Eastman -- KeyBanc Capital Markets -- Analyst
Andy Wittmann -- Robert W. Baird -- Analyst
Sam Kusswurm -- William Blair -- Analyst
David Silver -- CL King -- Analyst
Marc Riddick -- Sidoti & Company -- Analyst
More ABM analysis
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Last year I think it was defined by very, very low customer loss, very high retention rate, just kind of wanted to hunker down not change anything, make sure that they did this, you guys have talked a lot about how ABM has been well positioned with your processes and your leadership in the industry as the ability to take share. ABM Industries Inc (NYSE: ABM) Q1 2021 Earnings Call Mar 10, 2021, 8:30 a.m. Welcome to ABM Industries First Quarter 2021 Earnings Call. | Operator [Operator Closing Remarks] Duration: 59 minutes Call participants: Susie Kim -- Treasurer & Vice President of Investor Relations Scott Salmirs -- President and Chief Executive Officer Earl Ellis -- Executive Vice President and Chief Financial Officer Sean Eastman -- KeyBanc Capital Markets -- Analyst Andy Wittmann -- Robert W. Baird -- Analyst Sam Kusswurm -- William Blair -- Analyst David Silver -- CL King -- Analyst Marc Riddick -- Sidoti & Company -- Analyst More ABM analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. ABM Industries Inc (NYSE: ABM) Q1 2021 Earnings Call Mar 10, 2021, 8:30 a.m. Welcome to ABM Industries First Quarter 2021 Earnings Call. | Operator [Operator Closing Remarks] Duration: 59 minutes Call participants: Susie Kim -- Treasurer & Vice President of Investor Relations Scott Salmirs -- President and Chief Executive Officer Earl Ellis -- Executive Vice President and Chief Financial Officer Sean Eastman -- KeyBanc Capital Markets -- Analyst Andy Wittmann -- Robert W. Baird -- Analyst Sam Kusswurm -- William Blair -- Analyst David Silver -- CL King -- Analyst Marc Riddick -- Sidoti & Company -- Analyst More ABM analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. ABM Industries Inc (NYSE: ABM) Q1 2021 Earnings Call Mar 10, 2021, 8:30 a.m. Welcome to ABM Industries First Quarter 2021 Earnings Call. | Operator [Operator Closing Remarks] Duration: 59 minutes Call participants: Susie Kim -- Treasurer & Vice President of Investor Relations Scott Salmirs -- President and Chief Executive Officer Earl Ellis -- Executive Vice President and Chief Financial Officer Sean Eastman -- KeyBanc Capital Markets -- Analyst Andy Wittmann -- Robert W. Baird -- Analyst Sam Kusswurm -- William Blair -- Analyst David Silver -- CL King -- Analyst Marc Riddick -- Sidoti & Company -- Analyst More ABM analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. ABM Industries Inc (NYSE: ABM) Q1 2021 Earnings Call Mar 10, 2021, 8:30 a.m. Welcome to ABM Industries First Quarter 2021 Earnings Call. |
29336.0 | 2021-03-10 00:00:00 UTC | Daily Dividend Report: ABM,AXP,WAB,TOL,EPRT | ABM | https://www.nasdaq.com/articles/daily-dividend-report%3A-abmaxpwabtoleprt-2021-03-10 | nan | nan | ABM also announced that the Board of Directors has declared a cash dividend of $0.190 per common share payable on May 3, 2021 to shareholders of record on April 1, 2021. This will be the Company's 220th consecutive quarterly cash dividend.
The Board of Directors of American Express has declared a regular quarterly dividend of $0.43 per common share, payable on May 10, 2021, to shareholders of record on April 2, 2021.
Wabtec announced today that its Board of Directors declared a regular quarterly common dividend of 12 cents per share, payable on May 21, 2021 to holders of record on May 7, 2021.
Toll Brothers, the nation's leading builder of luxury homes, today announced that its Board of Directors approved an increase to its quarterly cash dividend to $0.17 per share, or a rate of $0.68 per share on an annualized basis. This represents an increase of 54% from the prior quarterly cash dividend of $0.11 per share. The dividend will be payable on April 23, 2021 to stockholders of record on the close of business on April 9, 2021. The Company initiated its dividend at $0.08 per share in April 2017 and last increased it to $0.11 per share in April 2018.
Essential Properties Realty Trust, announced today that its Board of Directors declared a quarterly cash dividend of $0.24 per share of common stock for the first quarter of 2021. This represents an annualized dividend of $0.96 per share of common stock. The dividend is payable on April 15, 2021 to stockholders of record as of the close of business on March 31, 2021.
VIDEO: Daily Dividend Report: ABM,AXP,WAB,TOL,EPRT
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | ABM also announced that the Board of Directors has declared a cash dividend of $0.190 per common share payable on May 3, 2021 to shareholders of record on April 1, 2021. VIDEO: Daily Dividend Report: ABM,AXP,WAB,TOL,EPRT The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The Board of Directors of American Express has declared a regular quarterly dividend of $0.43 per common share, payable on May 10, 2021, to shareholders of record on April 2, 2021. | ABM also announced that the Board of Directors has declared a cash dividend of $0.190 per common share payable on May 3, 2021 to shareholders of record on April 1, 2021. VIDEO: Daily Dividend Report: ABM,AXP,WAB,TOL,EPRT The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The Board of Directors of American Express has declared a regular quarterly dividend of $0.43 per common share, payable on May 10, 2021, to shareholders of record on April 2, 2021. | ABM also announced that the Board of Directors has declared a cash dividend of $0.190 per common share payable on May 3, 2021 to shareholders of record on April 1, 2021. VIDEO: Daily Dividend Report: ABM,AXP,WAB,TOL,EPRT The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The Board of Directors of American Express has declared a regular quarterly dividend of $0.43 per common share, payable on May 10, 2021, to shareholders of record on April 2, 2021. | ABM also announced that the Board of Directors has declared a cash dividend of $0.190 per common share payable on May 3, 2021 to shareholders of record on April 1, 2021. VIDEO: Daily Dividend Report: ABM,AXP,WAB,TOL,EPRT The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The Board of Directors of American Express has declared a regular quarterly dividend of $0.43 per common share, payable on May 10, 2021, to shareholders of record on April 2, 2021. |
29337.0 | 2021-03-05 00:00:00 UTC | These 3 Rock-Solid Dividend Stocks Just Set All-Time Highs | ABM | https://www.nasdaq.com/articles/these-3-rock-solid-dividend-stocks-just-set-all-time-highs-2021-03-05 | nan | nan | The stock market has changed gears in the past few weeks. The high-growth stocks that led the market higher in 2020 have gone through a significant correction. Yet the broader market hasn't given up much ground.
That's largely because market leadership is changing. Dividend stocks are picking up momentum, and investors especially like companies that have consistently boosted their annual payouts to shareholders. Getting more cash in shareholders' pockets has been a top priority for many dividend payers.
Three stocks, in particular, have given shareholders annual increases for 50 straight years or more and just set new record highs. Let's look more closely at these Dividend Kings to see why investors like them so much.
Image source: Getty Images.
1. Emerson Electric
Emerson Electric (NYSE: EMR) is one of the most impressive dividend stocks of all time. It's raised its dividend in 64 straight years, including a modest 1% rise last November. That brought the stock's dividend yield up to 2.3%.
Emerson concentrates on providing companies in several different industries with ways to automate their business processes. From automakers and energy producers to miners and food and beverage companies, Emerson's clients benefit from the increased efficiency that automation provides.
In recent years, investors had been nervous about Emerson's exposure to the oil and gas industry. However, with crude oil prices rebounding, shareholders have higher hopes that capital spending among customers in that area will pick back up again. That could provide another nice boost for a business that has been a big winner over the long run.
2. Parker-Hannifin
Parker-Hannifin (NYSE: PH) hasn't been quite as generous with its payouts, with a current yield of just 1.2%. However, its dividend streak is just as impressive, with 64 years of annual raises for shareholders counting on dividend income.
Parker-Hannifin is a leading manufacturer of motion and control systems, including systems providing climate control, filtration, electromechanical, and fluid and gas handling. You'll find its industrial clients working in areas such as manufacturing and aerospace.
Investors in the company have been wary of its aerospace exposure recently, given problems with major commercial aircraft models in 2019 and the severe downturn in the airline industry in 2020 due to the COVID-19 pandemic. However, with coronavirus vaccines being deployed, shareholders have higher hopes that Parker-Hannifin can benefit from a cyclical rebound.
3. ABM Industries
Finally, ABM Industries (NYSE: ABM) is the short-timer on this list. Its streak of annual dividend increases is "only" 54 years, including a 3% boost in January. The stock's yield is a respectable 1.8%.
ABM's facilities-management business encompasses nearly every aspect of handling clients' building maintenance needs. From janitorial services and landscaping to electric and HVAC systems, ABM provides a one-stop shop for businesses of all kinds looking for efficient handling of their infrastructure.
ABM employs a huge workforce given its relatively small size, and the fact that many businesses have shut down or curtailed in-person work has had a negative impact on ABM's sales in 2020. However, with the pandemic potentially coming under control in 2021, investors are getting more excited about ABM's ability to bounce back and take advantage of an upsurge in in-person industrial and business activity.
Dividend stocks are taking charge
After lagging behind high-growth stocks for a long time, dividend stocks are in the ascendancy. Many investors are discovering the powerful combination of income and growth prospects that the best dividend-paying stocks offer, and that could keep ABM, Parker-Hannifin, and Emerson Electric setting all-time highs for the foreseeable future.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | However, with the pandemic potentially coming under control in 2021, investors are getting more excited about ABM's ability to bounce back and take advantage of an upsurge in in-person industrial and business activity. Many investors are discovering the powerful combination of income and growth prospects that the best dividend-paying stocks offer, and that could keep ABM, Parker-Hannifin, and Emerson Electric setting all-time highs for the foreseeable future. ABM Industries Finally, ABM Industries (NYSE: ABM) is the short-timer on this list. | ABM Industries Finally, ABM Industries (NYSE: ABM) is the short-timer on this list. ABM's facilities-management business encompasses nearly every aspect of handling clients' building maintenance needs. From janitorial services and landscaping to electric and HVAC systems, ABM provides a one-stop shop for businesses of all kinds looking for efficient handling of their infrastructure. | ABM Industries Finally, ABM Industries (NYSE: ABM) is the short-timer on this list. ABM's facilities-management business encompasses nearly every aspect of handling clients' building maintenance needs. From janitorial services and landscaping to electric and HVAC systems, ABM provides a one-stop shop for businesses of all kinds looking for efficient handling of their infrastructure. | ABM Industries Finally, ABM Industries (NYSE: ABM) is the short-timer on this list. ABM's facilities-management business encompasses nearly every aspect of handling clients' building maintenance needs. From janitorial services and landscaping to electric and HVAC systems, ABM provides a one-stop shop for businesses of all kinds looking for efficient handling of their infrastructure. |
29338.0 | 2021-01-31 00:00:00 UTC | Don’t Overlook These 3 Dividend Kings | ABM | https://www.nasdaq.com/articles/dont-overlook-these-3-dividend-kings-2021-01-31 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The average investor is probably very familiar with some of the more well-known dividend growth stocks like 3M Company (NYSE:MMM), The Coca-Cola Company (NYSE:KO) and Johnson & Johnson (NYSE:JNJ). But when it comes to Dividend Kings, those stocks with at least 50 consecutive years of dividend growth, there are many names with smaller market capitalizations that fly under the radar.
But even small-caps can offer market-beating dividend yields along with continued dividend growth in the future. So don’t let these potentially unfamiliar names stop you in your tracks. There’s a lot to like about these companies, both now and for years to come.
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This article will discuss three Dividend Kings that income investors should not overlook just because they have smaller market caps than the more familiar mega-caps.
My top three picks are:
ABM Industries (NYSE:ABM)
Black Hills Corporation (NYSE:BKH)
Lancaster Colony (NASDAQ:LANC)
Under-The-Radar Dividend Kings: ABM Industries (ABM)
Source: Maridav/ShutterStock.com
ABM Industries (ABM) is a leading provider of facility solutions, including in the areas of janitorial, energy, parking, landscape and turf, and electrical and lighting. The company has offices in both the U.S. and Canada.
ABM Industries has a market capitalization of $2.6 billion and generated sales of almost $6 billion in fiscal 2020 (the company’s fiscal year ends Oct. 31).
ABM Industries has grown over the years through acquisitions. Although the company’s international presence is mostly confined to Canada, ABM has entered the United Kingdom market in recent years with its 2014 purchase of GBM Support Services and its 2015 purchase of Westway Services. We feel that international markets are a good source of future growth going forward.
In addition, as one of the largest companies in its industry, ABM Industries has a scale that can’t be matched by peers. This allows the company to go after national accounts, which allows it to acquire a significant amount of business all at once.
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ABM Industries benefits from an excellent reputation in its industry which gives it an advantage when competing for accounts. This also allows the company to expand its services for different work with clients it already has.
The industry is also very low-margin which helps to keep smaller competitors at bay. All of these competitive advantages helped ABM Industries see a 34% increase in earnings-per-share from 2007 to 2009, an excellent return considering the economic environment at the time.
This performance during the last recession has us believing that the company is recession-proof. Riding out recessions helped ABM Industries increase its dividend for 53 consecutive years, one of the longest dividend growth streaks among all industrial companies.
The company pays a current dividend of $0.76, which equates to a current yield of 1.9%. For context, the S&P 500 yields an average of 1.5%. With an expected earnings-per-share of $2.40 for fiscal 2021, ABM Industries has a projected payout ratio of 32%.
With a low payout ratio and a business model that can be extremely successful during tough economic times, it is likely that ABM Industries will continue to grow its dividend and remain among the dividend kings for years to come.
Black Hills Corporation (BKH)
Source: Shutterstock
Black Hills Corporation provides electricity and natural gas to customers in seven U.S. states, including Colorado, Iowa, Kansas and South Dakota. The company has been in business for since the early 1940s. Black Hills Corporation is valued at $4.9 billion and produced sales of $1.7 billion in 2019.
Black Hills Corporation has had some volatility over the last decade but has plans to help ensure future growth through new projects. For example, the company has an investment backlog of almost $3 billion for the 2020-2024 timeframe. Given its market capitalization and annual sales, this is a pretty aggressive investment strategy. The company also exited its oil business in 2018, avoiding looming commodity prices.
Demand for natural gas and electricity doesn’t change all that much regardless of how strong or weak the economy is. Black Hills Corporation doesn’t operate in many densely populated states. but it does enjoy rate reviews that allow it to recover its investments, all but guaranteeing that revenues will rise in the future.
Black Hills Corporation’s earnings-per-share declined 94% from 2007 to 2008 but resumed growth the very next year. It did take the company until 2014 to make a new earnings-per-share high. While this may seem to undermine the notion that utility companies are recession proof, Black Hills Corporation has raised its dividend through several recessions, including the most recent.
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Following a dividend increase at the end of 2020, Black Hills Corporation has now increased its dividend for 50 consecutive years, making the company one of the newer Dividend Kings.
The stock pays an annualized dividend of $2.26 and yields 3.8% at the moment. The payout ratio did move above 100% during the last recession, but has declined greatly since then. We expect that the payout ratio will be 62% in 2021 based off of our expected earnings-per-share of $3.65 for the year.
Black Hills Corporation is a more focused utility company since divesting its oil business. This should help smooth out earnings-per-share growth over the long-term. With a payout ratio in solid shape and operating in an industry that has fairly consistent demand for services, Black Hills Corporation should continue to grow its dividend.
Lancaster Colony (LANC)
Source: Shutterstock.com
Lancaster Colony Corporation has been making housewares and food products since the early 1960s, but the company has shifted towards food products primarily.
Landcaster makes meal accessories, such as croutons and bread products, in both the frozen and non-frozen categories.
Key products include Marzetti and New York brands. Lancaster has a market capitalization of $4.9 billion and produced revenue of $1.3 billion in fiscal 2020 (the company’s fiscal year ends June 30). Annual revenues are almost split evenly between foodservice and retail.
Lancaster is another company that has found growth through acquisitions. This has helped the company diversify away from foodservice sales, which have struggled significantly since the onset of the COVID-19 pandemic and the resulting social distancing restrictions.
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Fortunately, acquisitions and product lines related to the retail consumer already in-house have helped to offset these challenges.
The company’s key competitive advantages are that it has distribution partnerships with big box stores, such as Walmart (WMT), and McLane Company, a leading restaurant distributor. This gives Lancaster access to a nationwide customer pool of both retail and restaurant clients.
Lancaster performed well during the last recession as earnings-per-share grew almost 119% from 2007 to 2009, showing that its products remain in high demand even under adverse conditions. Restaurant demand certainly wains during recessionary times, but consumers still need to eat and Lancaster’s national brands have loyalty amongst shoppers.
Lancaster has increased its dividend for 58 consecutive years as the company has navigated a wide variety of economic environments. With an annualized dividend of $3.00, shares offer a 1.7% yield. Despite nearly six decades of dividend growth, the projected payout ratio for the current year is just 57% using our expected earnings-per-share of $5.20.
The company has definitely felt pain from its foodservice business related to the COVID-19 pandemic, but consumer sales made up for this headwind. This helps to show the strength of Lancaster’s business. If the company can hold up decently during this unprecedented time then it is likely to continue to thrive in almost any other economic environment.
The Bottom Line on the Dividend Kings
The Dividend Kings are full of well-known large-cap stocks, but they also contain some smaller names that have equally impressive dividend growth streaks. ABM Industries, Black Hills Corporation and Lancaster Colony are three such companies. Each has encountered difficult operating environments and still managed to raise their dividend payments to shareholders for at least 50 consecutive years.
On the date of publication, Bob Ciura did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Bob Ciura has worked at Sure Dividend since 2016. He oversees all content for Sure Dividend and its partner sites. Prior to joining Sure Dividend, Bob was an independent equity analyst. His articles have been published on major financial websites such as The Motley Fool, Seeking Alpha, Business Insider and more. Bob received a bachelor’s degree in Finance from DePaul University and an MBA with a concentration in investments from the University of Notre Dame.
The post Don’t Overlook These 3 Dividend Kings appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | My top three picks are: ABM Industries (NYSE:ABM) Black Hills Corporation (NYSE:BKH) Lancaster Colony (NASDAQ:LANC) Under-The-Radar Dividend Kings: ABM Industries (ABM) Source: Maridav/ShutterStock.com ABM Industries (ABM) is a leading provider of facility solutions, including in the areas of janitorial, energy, parking, landscape and turf, and electrical and lighting. ABM Industries has a market capitalization of $2.6 billion and generated sales of almost $6 billion in fiscal 2020 (the company’s fiscal year ends Oct. 31). ABM Industries has grown over the years through acquisitions. | My top three picks are: ABM Industries (NYSE:ABM) Black Hills Corporation (NYSE:BKH) Lancaster Colony (NASDAQ:LANC) Under-The-Radar Dividend Kings: ABM Industries (ABM) Source: Maridav/ShutterStock.com ABM Industries (ABM) is a leading provider of facility solutions, including in the areas of janitorial, energy, parking, landscape and turf, and electrical and lighting. ABM Industries has a market capitalization of $2.6 billion and generated sales of almost $6 billion in fiscal 2020 (the company’s fiscal year ends Oct. 31). ABM Industries has grown over the years through acquisitions. | My top three picks are: ABM Industries (NYSE:ABM) Black Hills Corporation (NYSE:BKH) Lancaster Colony (NASDAQ:LANC) Under-The-Radar Dividend Kings: ABM Industries (ABM) Source: Maridav/ShutterStock.com ABM Industries (ABM) is a leading provider of facility solutions, including in the areas of janitorial, energy, parking, landscape and turf, and electrical and lighting. Riding out recessions helped ABM Industries increase its dividend for 53 consecutive years, one of the longest dividend growth streaks among all industrial companies. ABM Industries has a market capitalization of $2.6 billion and generated sales of almost $6 billion in fiscal 2020 (the company’s fiscal year ends Oct. 31). | Riding out recessions helped ABM Industries increase its dividend for 53 consecutive years, one of the longest dividend growth streaks among all industrial companies. ABM Industries, Black Hills Corporation and Lancaster Colony are three such companies. My top three picks are: ABM Industries (NYSE:ABM) Black Hills Corporation (NYSE:BKH) Lancaster Colony (NASDAQ:LANC) Under-The-Radar Dividend Kings: ABM Industries (ABM) Source: Maridav/ShutterStock.com ABM Industries (ABM) is a leading provider of facility solutions, including in the areas of janitorial, energy, parking, landscape and turf, and electrical and lighting. |
29339.0 | 2021-01-05 00:00:00 UTC | ABM Industries Incorporated (ABM) Ex-Dividend Date Scheduled for January 06, 2021 | ABM | https://www.nasdaq.com/articles/abm-industries-incorporated-abm-ex-dividend-date-scheduled-for-january-06-2021-2021-01-05 | nan | nan | ABM Industries Incorporated (ABM) will begin trading ex-dividend on January 06, 2021. A cash dividend payment of $0.19 per share is scheduled to be paid on February 01, 2021. Shareholders who purchased ABM prior to the ex-dividend date are eligible for the cash dividend payment. This represents an 2.7% increase over prior dividend payment.
The previous trading day's last sale of ABM was $36.92, representing a -11.65% decrease from the 52 week high of $41.79 and a 86.55% increase over the 52 week low of $19.79.
ABM is a part of the Finance sector, which includes companies such as Airbnb, Inc. (ABNB) and Paychex, Inc. (PAYX). ABM's current earnings per share, an indicator of a company's profitability, is -$.02. Zacks Investment Research reports ABM's forecasted earnings growth in 2021 as -.21%, compared to an industry average of 3.3%.
For more information on the declaration, record and payment dates, visit the ABM Dividend History page. Our Dividend Calendar has the full list of stocks that have an ex-dividend today.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | ABM is a part of the Finance sector, which includes companies such as Airbnb, Inc. (ABNB) and Paychex, Inc. (PAYX). Zacks Investment Research reports ABM's forecasted earnings growth in 2021 as -.21%, compared to an industry average of 3.3%. For more information on the declaration, record and payment dates, visit the ABM Dividend History page. | ABM Industries Incorporated (ABM) will begin trading ex-dividend on January 06, 2021. Shareholders who purchased ABM prior to the ex-dividend date are eligible for the cash dividend payment. The previous trading day's last sale of ABM was $36.92, representing a -11.65% decrease from the 52 week high of $41.79 and a 86.55% increase over the 52 week low of $19.79. | ABM Industries Incorporated (ABM) will begin trading ex-dividend on January 06, 2021. Shareholders who purchased ABM prior to the ex-dividend date are eligible for the cash dividend payment. For more information on the declaration, record and payment dates, visit the ABM Dividend History page. | Shareholders who purchased ABM prior to the ex-dividend date are eligible for the cash dividend payment. ABM Industries Incorporated (ABM) will begin trading ex-dividend on January 06, 2021. The previous trading day's last sale of ABM was $36.92, representing a -11.65% decrease from the 52 week high of $41.79 and a 86.55% increase over the 52 week low of $19.79. |
29340.0 | 2021-01-04 00:00:00 UTC | ABM Industries About To Put More Money In Your Pocket (ABM) | ABM | https://www.nasdaq.com/articles/abm-industries-about-to-put-more-money-in-your-pocket-abm-2021-01-04 | nan | nan | Looking at the universe of stocks we cover at Dividend Channel, on 1/6/21, ABM Industries, Inc. (Symbol: ABM) will trade ex-dividend, for its quarterly dividend of $0.19, payable on 2/1/21. As a percentage of ABM's recent stock price of $37.99, this dividend works out to approximately 0.50%.
In general, dividends are not always predictable; but looking at the history above can help in judging whether the most recent dividend from ABM is likely to continue, and whether the current estimated yield of 2.00% on annualized basis is a reasonable expectation of annual yield going forward. The chart below shows the one year performance of ABM shares, versus its 200 day moving average:
Looking at the chart above, ABM's low point in its 52 week range is $19.7906 per share, with $41.79 as the 52 week high point — that compares with a last trade of $38.02.
Free Report: Top 7%+ Dividends (paid monthly)
In Monday trading, ABM Industries, Inc. shares are currently up about 0.4% on the day.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In general, dividends are not always predictable; but looking at the history above can help in judging whether the most recent dividend from ABM is likely to continue, and whether the current estimated yield of 2.00% on annualized basis is a reasonable expectation of annual yield going forward. The chart below shows the one year performance of ABM shares, versus its 200 day moving average: Looking at the chart above, ABM's low point in its 52 week range is $19.7906 per share, with $41.79 as the 52 week high point — that compares with a last trade of $38.02. Free Report: Top 7%+ Dividends (paid monthly) In Monday trading, ABM Industries, Inc. shares are currently up about 0.4% on the day. | Looking at the universe of stocks we cover at Dividend Channel, on 1/6/21, ABM Industries, Inc. (Symbol: ABM) will trade ex-dividend, for its quarterly dividend of $0.19, payable on 2/1/21. The chart below shows the one year performance of ABM shares, versus its 200 day moving average: Looking at the chart above, ABM's low point in its 52 week range is $19.7906 per share, with $41.79 as the 52 week high point — that compares with a last trade of $38.02. Free Report: Top 7%+ Dividends (paid monthly) In Monday trading, ABM Industries, Inc. shares are currently up about 0.4% on the day. | Looking at the universe of stocks we cover at Dividend Channel, on 1/6/21, ABM Industries, Inc. (Symbol: ABM) will trade ex-dividend, for its quarterly dividend of $0.19, payable on 2/1/21. In general, dividends are not always predictable; but looking at the history above can help in judging whether the most recent dividend from ABM is likely to continue, and whether the current estimated yield of 2.00% on annualized basis is a reasonable expectation of annual yield going forward. The chart below shows the one year performance of ABM shares, versus its 200 day moving average: Looking at the chart above, ABM's low point in its 52 week range is $19.7906 per share, with $41.79 as the 52 week high point — that compares with a last trade of $38.02. | Looking at the universe of stocks we cover at Dividend Channel, on 1/6/21, ABM Industries, Inc. (Symbol: ABM) will trade ex-dividend, for its quarterly dividend of $0.19, payable on 2/1/21. As a percentage of ABM's recent stock price of $37.99, this dividend works out to approximately 0.50%. In general, dividends are not always predictable; but looking at the history above can help in judging whether the most recent dividend from ABM is likely to continue, and whether the current estimated yield of 2.00% on annualized basis is a reasonable expectation of annual yield going forward. |
29341.0 | 2020-12-20 00:00:00 UTC | ABM Industries Incorporated (NYSE:ABM) Full-Year Results: Here's What Analysts Are Forecasting For This Year | ABM | https://www.nasdaq.com/articles/abm-industries-incorporated-nyse%3Aabm-full-year-results%3A-heres-what-analysts-are | nan | nan | As you might know, ABM Industries Incorporated (NYSE:ABM) recently reported its full-year numbers. Results were overall in line with expectations, with the company breaking even at the statutory earnings per share (EPS) level on US$6.0b in revenue. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
NYSE:ABM Earnings and Revenue Growth December 20th 2020
Following last week's earnings report, ABM Industries' four analysts are forecasting 2021 revenues to be US$5.87b, approximately in line with the last 12 months. Per-share earnings are expected to bounce 82,787% to US$2.48. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$5.91b and earnings per share (EPS) of US$2.31 in 2021. So the consensus seems to have become somewhat more optimistic on ABM Industries' earnings potential following these results.
The consensus price target was unchanged at US$49.00, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on ABM Industries, with the most bullish analyst valuing it at US$58.00 and the most bearish at US$45.00 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. These estimates imply that sales are expected to slow, with a forecast revenue decline of 2.0%, a significant reduction from annual growth of 6.1% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 6.6% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - ABM Industries is expected to lag the wider industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around ABM Industries' earnings potential next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply revenues will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for ABM Industries going out to 2022, and you can see them free on our platform here..
Before you take the next step you should know about the 5 warning signs for ABM Industries that we have uncovered.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | As you might know, ABM Industries Incorporated (NYSE:ABM) recently reported its full-year numbers. NYSE:ABM Earnings and Revenue Growth December 20th 2020 Following last week's earnings report, ABM Industries' four analysts are forecasting 2021 revenues to be US$5.87b, approximately in line with the last 12 months. So the consensus seems to have become somewhat more optimistic on ABM Industries' earnings potential following these results. | NYSE:ABM Earnings and Revenue Growth December 20th 2020 Following last week's earnings report, ABM Industries' four analysts are forecasting 2021 revenues to be US$5.87b, approximately in line with the last 12 months. The Bottom Line The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around ABM Industries' earnings potential next year. As you might know, ABM Industries Incorporated (NYSE:ABM) recently reported its full-year numbers. | NYSE:ABM Earnings and Revenue Growth December 20th 2020 Following last week's earnings report, ABM Industries' four analysts are forecasting 2021 revenues to be US$5.87b, approximately in line with the last 12 months. The Bottom Line The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around ABM Industries' earnings potential next year. At Simply Wall St, we have a full range of analyst estimates for ABM Industries going out to 2022, and you can see them free on our platform here.. Before you take the next step you should know about the 5 warning signs for ABM Industries that we have uncovered. | NYSE:ABM Earnings and Revenue Growth December 20th 2020 Following last week's earnings report, ABM Industries' four analysts are forecasting 2021 revenues to be US$5.87b, approximately in line with the last 12 months. The Bottom Line The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around ABM Industries' earnings potential next year. As you might know, ABM Industries Incorporated (NYSE:ABM) recently reported its full-year numbers. |
29342.0 | 2020-12-18 00:00:00 UTC | Validea Joel Greenblatt Strategy Daily Upgrade Report - 12/18/2020 | ABM | https://www.nasdaq.com/articles/validea-joel-greenblatt-strategy-daily-upgrade-report-12-18-2020-2020-12-18 | nan | nan | The following are today's upgrades for Validea's Earnings Yield Investor model based on the published strategy of Joel Greenblatt. This value model looks for companies with high return on capital and earnings yields.
ABM INDUSTRIES, INC. (ABM) is a mid-cap growth stock in the Business Services industry. The rating according to our strategy based on Joel Greenblatt changed from 0% to 80% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: ABM Industries Incorporated is a provider of integrated facility solutions. The Company operates through five segments: Janitorial, Facility Services, Parking, Building & Energy Solutions, and other. Its Janitorial segment provides a range of cleaning services for commercial office buildings, data centers, educational institutions, government buildings, health facilities, industrial buildings, retail stores, sport event facilities and transportation hubs. Its Facility Services segment provides onsite mechanical engineering and technical services and solutions relating to a range of facilities and infrastructure systems. Its Parking segment provides parking and transportation services. Its Building & Energy Solutions segment provides energy solutions; electrical; heating, ventilation and air conditioning; lighting, and other general maintenance and repair services for clients. Its other segment provides facility solutions to airlines and airports.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
EARNINGS YIELD: NEUTRAL
RETURN ON TANGIBLE CAPITAL: NEUTRAL
FINAL RANKING: FAIL
Detailed Analysis of ABM INDUSTRIES, INC.
Full Guru Analysis for ABM
Full Factor Report for ABM
More details on Validea's Joel Greenblatt strategy
Joel Greenblatt Stock Ideas
About Joel Greenblatt: In his 2005 bestseller The Little Book That Beats The Market, hedge fund manager Joel Greenblatt laid out a stunningly simple way to beat the market using two -- and only two -- fundamental variables. The "Magic Formula," as he called it, produced back-tested returns of 30.8 percent per year from 1988 through 2004, more than doubling the S&P 500's 12.4 percent return during that time. Greenblatt also produced exceptional returns as managing partner at Gotham Capital, a New York City-based hedge fund he founded. The firm averaged a remarkable 40 percent annualized return over more than two decades.
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | ABM INDUSTRIES, INC. (ABM) is a mid-cap growth stock in the Business Services industry. Company Description: ABM Industries Incorporated is a provider of integrated facility solutions. Detailed Analysis of ABM INDUSTRIES, INC. Full Guru Analysis for ABM Full Factor Report for ABM More details on Validea's Joel Greenblatt strategy Joel Greenblatt Stock Ideas About Joel Greenblatt: In his 2005 bestseller The Little Book That Beats The Market, hedge fund manager Joel Greenblatt laid out a stunningly simple way to beat the market using two -- and only two -- fundamental variables. | Detailed Analysis of ABM INDUSTRIES, INC. Full Guru Analysis for ABM Full Factor Report for ABM More details on Validea's Joel Greenblatt strategy Joel Greenblatt Stock Ideas About Joel Greenblatt: In his 2005 bestseller The Little Book That Beats The Market, hedge fund manager Joel Greenblatt laid out a stunningly simple way to beat the market using two -- and only two -- fundamental variables. ABM INDUSTRIES, INC. (ABM) is a mid-cap growth stock in the Business Services industry. Company Description: ABM Industries Incorporated is a provider of integrated facility solutions. | Detailed Analysis of ABM INDUSTRIES, INC. Full Guru Analysis for ABM Full Factor Report for ABM More details on Validea's Joel Greenblatt strategy Joel Greenblatt Stock Ideas About Joel Greenblatt: In his 2005 bestseller The Little Book That Beats The Market, hedge fund manager Joel Greenblatt laid out a stunningly simple way to beat the market using two -- and only two -- fundamental variables. ABM INDUSTRIES, INC. (ABM) is a mid-cap growth stock in the Business Services industry. Company Description: ABM Industries Incorporated is a provider of integrated facility solutions. | Detailed Analysis of ABM INDUSTRIES, INC. Full Guru Analysis for ABM Full Factor Report for ABM More details on Validea's Joel Greenblatt strategy Joel Greenblatt Stock Ideas About Joel Greenblatt: In his 2005 bestseller The Little Book That Beats The Market, hedge fund manager Joel Greenblatt laid out a stunningly simple way to beat the market using two -- and only two -- fundamental variables. ABM INDUSTRIES, INC. (ABM) is a mid-cap growth stock in the Business Services industry. Company Description: ABM Industries Incorporated is a provider of integrated facility solutions. |
29343.0 | 2020-12-17 00:00:00 UTC | ABM Industries Inc (ABM) Q4 2020 Earnings Call Transcript | ABM | https://www.nasdaq.com/articles/abm-industries-inc-abm-q4-2020-earnings-call-transcript-2020-12-17 | nan | nan | Image source: The Motley Fool.
ABM Industries Inc (NYSE: ABM)
Q4 2020 Earnings Call
Dec 17, 2020, 8:30 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Greetings. Welcome to ABM Industries Fourth Quarter 2020 Earnings Call. [Operator Instructions] Please note, this conference is being recorded.
I will now turn the conference over to Susie Kim, Vice President of Investor Relations and Treasurer. Thank you. You may begin.
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Susie A. Kim -- Vice President of Investor Relations and Treasurer
Thank you all for joining us this morning. With us today are Scott Salmirs, our President and Chief Executive Officer; and Earl Ellis, our New Executive Vice President and Chief Financial Officer.
We issued our press release yesterday afternoon, announcing our fourth quarter and fiscal 2020 financial results. A copy of this release and an accompanying slide presentation can be found on our corporate website.
Before we begin, I would like to remind you that our call and presentation today contain predictions, estimates and other forward-looking statements. Our use of the words estimates, expect and similar expressions are intended to identify these statements. These statements represent our current judgment of what the future holds. While we believe them to be reasonable, these statements are subject to risks and uncertainties that could cause our actual results to differ materially. These factors are described in a slide that accompanies our presentation, as well as in our filings with the SEC.
During the course of this call, certain non-GAAP financial information will be presented. A reconciliation of those numbers to GAAP financial measures is available at the end of the presentation and on the company's website under the Investor tab.
Before we begin, I'd like to remind everyone that Earl joined less than a month ago after the fiscal year end; and although quickly acclimating himself to the business, should you have any questions after today's call, please follow-up with Investor Relations accordingly.
I would now like to turn the call over to Scott.
Scott Salmirs -- President and Chief Executive Officer
Thanks, Susie, and good morning, everyone. Thank you for joining us on today's call and we hope you and your families are safe and healthy. It's hard to believe we're already at the close of 2020 and covering our fourth quarter results. On the other hand, we're about to discuss only the second full quarter of COVID-19's impact on our financials.
In Q4, we reported revenues of approximately $1.5 billion for the quarter. This represents a 9.9% decline versus last year and a considerable sequential improvement when comparing to our more than 15% decline in Q3. Once again, our diversified client base demonstrates the resilience of our business.
Our Technology & Manufacturing industry group grew almost 7% and Business & Industry as well as Education posted revenue results that were only slightly down. As one would expect, our Aviation segment drove the majority of our organic decline versus last year.
Technical Solutions also saw a large revenue decline and continued to see challenges in site access, which affected churn rates. Positively, the backlog of committed work in Technical Solutions is healthy and the pipeline for '21 is robust.
So all things considered, it was a good revenue story for the quarter. From a profit perspective, there was sustained demand for higher margin COVID-related work orders and our enhanced cleaning program, particularly in Business & Industry and Technology & Manufacturing.
Our financial performance was protected by our variable labor model and our ability to dynamically adjust staffing based on demand, and we continue to see profit arbitrage by efficiently managing labor as we scaled and consolidated staff during the quarter. This has been one of the key contributors of our financial performance through the pandemic.
As a result of all of these factors, we grew earnings on both the GAAP and an adjusted basis versus last year. Income from continued operations grew to $53.1 million or $0.78 per share. On an adjusted basis, we delivered $46.7 million or $0.69 per share. Adjusted EBITDA margin rose to 6.2% versus 5.6% last year.
Even more compelling, these results incorporate a non-cash reserve we took for an entertainment-related project within our Technical Solutions segment. This was a unique circumstance in client, and not a reflection of our broader project portfolio within Technical Solutions. This had 120 basis point impact on our adjusted EBITDA margin as well as our earnings. So even when including this distinctive event, quarter-after-quarter, our performance continues to demonstrate consistent strength and execution.
In so many ways, 2020 will stand out as a pivotal year for ABM. The pandemic has created a shift in the public mindset as professional Class A janitorial services are now unquestionably viewed as an essential and non-discretionary service. Facility owners must demonstrate that they are providing clean, healthy and safe spaces that their occupants can trust. Not only will this be required, but it will be a reflection of their brand.
Our response with our EnhancedClean service, gives our clients the peace of mind that comes with studied protocols and practices that keep facilities safe, and this offering creates even more distance between us and our competitors.
As a company that's been around for more than 110 years, ABM has withstood and grown during many global events. But 2020 tested us in historic ways and I've never been more inspired by our organization.
I want to take a moment to recap some of our team's accomplishments more specifically. Since March, we have been on the frontlines battling a pandemic that has disrupted nearly every industry. While navigating a constantly evolving environment as we learn more about the virus, we prioritized the health and safety of our employees and our clients above all. And when it came to PPE and our global supply chain, our procurement team did not disappoint when others in our space did, as they couldn't accommodate surging demands.
Also, we partnered with large cleaning contractors to form the Cleaning Coalition of America to represent our industry which played a critical role in restoring our country. The Coalition plans to press for vaccine priority for our industry and developed a focused campaign on awareness around what differentiates best-in-class providers.
At ABM, we were particularly proud of how we proactively developed our own expert-backed certified programs to answer our client's needs with disinfection protocols, such as specialized training and signage, electrostatic spraying of disinfectant and air filtration. And all of this is being supported by one of the most comprehensive marketing campaigns we've ever developed. What shouldn't be minimized is the fact that we mobilized multiple cross-functional task forces across all the critical areas of our business that elevated our adeptness and will endure long past the pandemic.
These task forces led to improved operating procedures for labor management, sales and financial activities. As an example, our approach to collections led us to generate more than $450 million in cash flow from operations and $420 million in free cash flow, both records for the firm. This translates to nearly $1 billion of liquidity, including $400 million of cash, which is an extremely powerful position to be in during still uncertain times.
As we move into 2021, our intention is to capitalize on the momentum and shift from defense to offense. Beginning with our executive team, we recently announced several appointments to further align our internal organizational structure to our business strategies.
First, I'm pleased to introduce our new CFO, Earl Ellis, on this morning's call. Earl is a seasoned finance executive joining us from Best Buy, a leading Fortune 500 provider of consumer technology products and services with 125,000 employees in North America. Earl held several executive positions across finance and most recently he was responsible for leading enterprise capital project planning plus transformation and procurement as well as supporting digital and technology and global real estate. During his tenure at Best Buy, Earl also spearheaded several strategic initiatives targeting labor and logistics. Earl joined less than three weeks ago but is quickly immersing himself in our business.
I'm also excited that Rene Jacobsen has been promoted to Chief Operating Officer and will lead all of our client-facing industry groups. Since joining ABM eight years ago, Rene has consistently driven our operational performance and service excellence and his leadership was unquestionably instrumental in our successful navigation of 2020. As COO, he will provide strategic guidance for our operations and drive our financial results across all of our platforms.
Rene will also continue to work with Sean Mahoney our new President of Sales and Marketing. Since Sean's arrival in ABM in 2017, we've broken sales records each succeeding year and we achieved another record in 2020 with new sales at $1.2 billion, an amazing accomplishment for any year but especially in a year when so much of the economy was paused.
With both Rene and Sean's leadership, our operations and sales teams proved to be a powerful combination in 2020 and will undoubtedly exceed our expectations in 2021.
Speaking of 2021, later in the year, we will be sharing our refresh business strategy which builds on the positive changes and the acceleration we saw with our 2020 vision. At that time, we will be reviewing our technology plan and path toward a digital platform for our employees and clients.
In fact, just as I discussed last quarter, some of our near-term investments are reengagements of IT projects that were put on hold due to the pandemic, like our ERP system and data management roadmap. Other investments will be new given the opportunities that arose as a result of the pandemic such as EnhancedClean and the associated build of that program.
On that front, from a payback standpoint, we concluded the year with over $300 million in sales for our EnhancedClean program and COVID-related activities. And we have some really exciting sales and marketing plans lined up over the next few months to continue accelerating and differentiating ourselves in the marketplace. Of course, we will be responsible for our investment approach given how smooth the operating environment is but we recognize that we must plan for the long-term while also keeping our maniacal focus on what the near term may bring.
There's no doubt that conditions remain uncertain, particularly as we operate over the winter months. COVID cases continue to rise throughout the country and I'm sure you've seen or experienced various stages of closures in your own communities. Unfortunately, the operating environment isn't any more predictable than it was last quarter.
Clients are still generally managing for the shorter term as they react to resurgences, which caused occupancy volatility and they don't yet have the ability to predict when the workforce at large will return. While vaccine news is encouraging, the widespread availability and use is also unknown today, which could impact the timing of recoveries and reopenings. Therefore, our visibility remains limited and, as you would expect, we are not providing guidance for the full fiscal year in 2021.
However, we are going to share our near-term expectations for the first fiscal quarter. This is the only time we anticipate guiding to such a short-term view, given the uniqueness of the moment. For the first quarter, we expect GAAP EPS of $0.53 to $0.58 in earnings per diluted share or adjusted EPS of $0.60 to $0.65 per diluted share. These ranges compare to last year's $0.41 and $0.39 respectively, both considerable increases on a year-over-year basis. We also expect adjusted EBITDA margin in the range of 6.1% to 6.4%, expanding from 4.3% last year.
At this time, we believe we may have seen the bottom in revenue compression as a result of COVID-19. Sequentially, we could see similar to slightly better organic declines than what we saw in Q4. We also anticipate good demand for pandemic-related work orders and EnhancedClean to continue throughout Q1.
The investments I discussed earlier should also continue into Q1, which you will see in both our segment profit and corporate lines. In general, investments will continue throughout fiscal 2021 but the magnitude and cadence will be determined by both our long-term strategy and where we see the broader recovery going.
Earl will go through more detail on some of the assumptions for the quarter and year, which is obviously still dynamic. Should we have better line of sight for the full year by Q2, we would anticipate providing full year guidance at that time.
Before I turn the call over to Earl, I want to thank all our team members again for their dedication to our purpose as a company to take care of the people, spaces and places that are important to you. This purpose has never meant more than it does today. Our value to clients has risen because our teams have been the ambassadors of our brands and demonstrated the operational excellence that sets ABM apart from our competitors.
Nine months ago, we couldn't have imagined how 2020 would culminate for ABM. We not only exceeded our pre-COVID expectations, but actually accelerated into a long-term EBITDA margin range of 5.5% to 6%. Our 2020 vision journey has come to a climactic transition, leading us into the next phase of growth and excellence and building on a strong foundation to propel us into the future.
Next year, we'll also mark our 50th anniversary on the New York Stock Exchange and we look forward to celebrating this milestone at ABM's history. So, while last year was certainly a memorable one for our organization, I'm now looking forward to the opportunities that lie ahead and I am more excited than ever.
Now, to Earl, who'll cover our financial results.
Earl Ellis -- Executive Vice President and Chief Financial Officer
Thanks for the warm welcome, Scott. I am so excited to be part of the ABM team. I recognized early on that the culture here is so special and unique. Even in just my first few weeks here, I have witnessed an exceptional drive to collaborate and execute that clearly sets ABM apart.
As I spend the next several months diving into the business, I look forward to developing and sharing my perspectives on our financial strategies over future calls.
Now, onto our quarterly results. Revenue for the quarter were $1.5 billion, a total decrease of approximately 9.9% compared to last year, reflecting our second full quarter of COVID-19 revenue declines, particularly in the Aviation and Technical Solutions segment. Partially offsetting this revenue decline was continued demand for higher margin work orders that we have been providing for our clients through the pandemic, particularly within business and industry and technology and manufacturing.
GAAP income from continuing operations was $53.1 million or $0.78 per diluted share compared to $48.1 million or $0.71 last year. These results reflect the continuation of favorable claims trend related to health insurance reserves. We saw a benefit of $21.3 million in self-insurance adjustments, of which $6.2 million was related to the current year.
On an adjusted basis, income from continued operations for the quarter increased to $46.7 million or $0.69 per diluted share compared to $44.7 million or $0.66 last year. Similar to the third quarter, our GAAP and adjusted earnings growth versus last year was driven primarily by a significant increase in higher margin work orders as clients respond to COVID-19 as well as the continued management of direct labor to align with the demand environment for legacy services.
Partially offsetting these results was a $17.6 million reserve for notes receivables for a project related to a unique family entertainment customer within the Technical Solutions segment. We are currently working with the client to resolve this issue.
In addition, operational investments in such areas as our EnhancedClean program continued, which was embedded in our operating segment results. We also reengaged certain corporate projects such as investments in IT, that were previously put on hold as we prioritized business continuity during the pandemic. This amount was approximately $10 million for the quarter.
On a year-over-year basis, the fourth quarter also experienced one less workday which equates to approximately $6 million in labor expense savings.
I'll speak about the cadence of our working days for fiscal 2021 later in the call. But the number of days in the fourth quarter of fiscal 2021 will be comparable at 65 days.
Our overall performance during the quarter led to adjusted EBITDA of approximately $92.5 million at a margin rate of 6.2% compared to $93 million or 5.6% last year.
Now, for a discussion of our segment results. As a reminder, these results reflect the ongoing impact of COVID-19 on revenue. Operating profit reflects the mix shift toward higher margin work orders, labor modulation on legacy service demand, as well as operational investments such as EnhancedClean.
B&I revenues were $794.3 million, down just 1.6%. We're encouraged by the sequential top line improvement compared to a decline of 6.3% last quarter. The pandemic's negative impact on our parking and sports and entertainment business continued this quarter, similar to Q3. Offsetting this COVID compression and the loss of some lower margin business, we had consistently strong demand for higher margins pandemic-related work orders. This led to a more favourable mix of B&I business that led to operating profit growth of more than 65% to $84.7 million with a margin rate of 10.7%.
Another very resilient segment for us during the pandemic has been our T&M business. Revenues were $245.5 million for the quarter, up 6.7% versus last year. Operating profit grew more than 30% to $23.5 million for an operating margin of 9.6%. This segment is particularly comprised of essential service providers such as biopharma, logistics and industrial manufacturing. As a result, demand has been driven by work order and EnhancedClean work, more than offsetting any COVID-related and other account losses throughout the year.
In education, we reported revenue of $212.2 million, reflecting the new school season and the adoption of hybrid models across our K-12 and higher education portfolios. Operating profit of $15.1 million or 7.1% margin reflects labor-related savings as a result of modified staffing at site locations during the pandemic.
As many of us are likely experiencing today with our own children, there remains a great deal of variability in this segment as different cities respond to resurgences, particularly ahead of the holiday season. We continue to monitor developments and partner with our clients to address both day-to-day cleaning and disinfection needs, as well as longer term budget constraints, where our technical solutions offering can be compelling.
Aviation reported revenues of $141 million, and an operating profit of $3.5 million, clearly demonstrating how the pandemic continues to have a dramatic impact on the industry. However, as discussed last quarter, our goal was to achieve a breakeven position or better by the fourth quarter. We are pleased to have closed the year in a profitable position.
And now onto Technical Solutions, which reported revenues of $123.1 million compared to $175.5 million last year. As a reminder, this segment experienced phenomenal growth last year, exceeding 25% during Q4 of fiscal '19.
In addition to tougher compare, site access has been disrupted by the pandemic. Backlog remains in our healthy zone, which we've historically defined as above the $150 million. We are actively monitoring our ability to churn through these projects. The operating loss of $3.6 million was driven by a reserve of notes receivables related to a single entertainment customer and associated with the client increasing credit risk resulting from the pandemic, which we continue to pursue.
Turning to cash and liquidity. During the quarter, we generated a record $198.7 million in cash flow from operations and free cash flow of $189.6 million for the quarter. This led to $457.5 million in cash flow and $419.5 million of free cash flow for the year. As a reminder, these results include $101 million in deferred U.S. payroll taxes as a result of the CARES Act, which will be due in 2021 and 2022. Even excluding this, these are records for the year.
Due to our strong cash position, we ended the quarter with total debt, including standby letters of credit of $883.4 million and a bank adjusted leverage ratio of 2.1 times. Additionally, we ended the quarter with cash and cash equivalents of $394.2 million.
During the quarter, we paid our 218th consecutive quarterly cash dividend for a total distribution of approximately $12.3 million. And as stated in our earnings release, I am pleased to share that our Board of Directors approved our 219th consecutive quarterly cash dividend.
Now, for a quick recap of our annual results. Total revenues were approximately $6 billion, a decrease of 7.9% versus last year. The decrease in revenues was attributable to the COVID-19 pandemic's impact on business operations, predominately during the third and fourth quarters of this year.
Our GAAP income from continuing operations for fiscal 2020 was $0.2 million. On an adjusted basis, income from continuing operations for the year was $163.5 million or $2.43 per diluted share.
Adjusted EBITDA for the year increased 6.6% to $361.9 million and we ended the fiscal year with an adjusted EBITDA margin of 6%.
Now, turning to our guidance outlook. We are providing guidance for the first quarter of fiscal 2021. At this time, we expect GAAP EPS to be in a range of $0.53 to $0.58 and adjusted EPS to be in a range of $0.60 to $0.65. Adjusted EBITDA margin is anticipated to be between 6.1% to 6.4%. This guidance outlook assumes organic growth will be sequentially flat to slightly improved versus the fourth quarter of fiscal 2020.
We anticipate a higher margin work orders and labor efficiencies to continue into the first quarter. And as Scott discussed extensively, we are planning to invest in fiscal 2021. The first quarter will see the same level of investments that we saw during the fourth quarter of fiscal 2020 of approximately $10 million. The first quarter will also have one less working day versus last year, which could lead to approximately $6 million in lower labor expense.
However, we are preparing for the potential for higher payroll taxes beginning in January for SUI, FUI, as well as federal taxes such as FICA.
With respect to interest, based on our operating expectations for the first quarter and our current cash position, we do not anticipate an increase in borrowings compared to the fourth quarter. Therefore, sequentially, interest expense should decrease slightly due to the continuing amortization of our term loan.
The tax rate for the quarter is anticipated to be approximately 30%. This rate excludes discrete tax items such as the work opportunity tax credit and a tax impact of stock-based compensation awards, the total impact of which we currently expect will be under $1 million in Q1.
As it relates to fiscal 2021, as illustrated in today's presentation, there will be one less working day in the new fiscal year, one less day in Q1, one more day in Q2, one less day in Q3, and flat to last year in Q4.
With respect to cash flow, we assume government-related benefits in the U.K. and U.S., such as the CARES Act, will not recur. This should be considered when ascertaining free cash flow for the new fiscal year. However, we drove higher free cash flow as a result of sharper operational practices in response to the pandemic. And we intend to continue to uphold these standards and disciplines.
Lastly, related to taxes, in fiscal '20, our full-year impact for the Work Opportunity Tax Credit was $4 million, reflecting the pandemic's impact on traditional hiring practices.
Currently, WATSI [phonetic] is expected to expire on December 31 of this calendar year. However, we are actively monitoring Congress for related action, including an extension on WATSI.
Before I turn the call over to the operator, I'd like to reiterate my excitement about being part of the ABM team. On the heels of such strong results for 2020, I look forward to sharing more with you over the coming quarters.
Operator, we are now ready for questions.
Questions and Answers:
Operator
Thank you. [Operator Instructions] And our first question comes from Andrew Wittmann with Baird. Please proceed.
Andrew Wittmann -- Baird -- Analyst
Great. Thanks for taking my questions. Good morning, everyone. I guess my question -- my first question here has to do with the margins, and they're obviously very good. You guys have continued to positively surprise here over the quarters. And so, I wanted to dig into that, particularly on the gross margin expansion, I guess.
I was hoping that you could give us some sense about how much of the gross margin expansion that you're posting is purely from the mix of having toward more tag revenue and less parking revenue, things of that nature. So, mixed benefit from what seems like you guys have actively really managed your labor pool against the base business to drive efficiencies there. So, I know that might be a hard question to quantify, but I thought I would try and see what you can tell us so we can understand kind of some of the moving pieces inside of it?
Scott Salmirs -- President and Chief Executive Officer
Yes. Sure, Andy, and good to hear. Look, a majority of the margin increases come from pandemic-related work orders and also our EnhancedClean. And then also our labor management is probably about 50-50, in terms of contribution. And so, it's been a really good story for us. And I think the better story is that we're continuing to see momentum into the first quarter, which is reflected in the quarterly guidance. And we wish we could give full year guidance to give you a better sense of it.
It is really still early on. But I will tell you, Andy, the one thing that has changed, I think if you were to look maybe a couple of months ago, you would think that this was -- with the vaccine coming, would be more of a binary event and is this all going to be over in October, right?
And I think what we're starting to learn now that this isn't a quarter-by-quarter event. There's going to be a rollout of these vaccines. There's going to be some supply chain issues and we've even seen that. From all the polls that I've seen, at least 50% of the population isn't even going to take the vaccine. So, we think this is going to be a longer term story than something that again is going to be feeling like a more binary.
And then you think about kind of the office environment and you can have some people that are taking the vaccine, some people that aren't taking the vaccine, so there's still going to be people wearing masks. There's still going to be a need to disinfect, because I'm not sure they've even figured out whether or not if you've been vaccinated, you can still transmit it, right? And then the question is, how long does the vaccine last?
So, there's so many uncertainties there. So whereas, again, I think, earlier in the year, we thought this could be maybe a quarterly story, I'm not sure it's not a longer term yearly story right now, so. And we're seeing the heightened awareness. So, I don't think the momentum is going to change anytime soon.
Andrew Wittmann -- Baird -- Analyst
Yes, I wanted to dig in on that. I'm glad you kind of went that direction, Scott. Because as -- I mean, you've obviously had to de-scope with your customers, obviously not occupying so much space. And it feels like and I guess you just said that basically as they de-scope, you've managed your labor probably even better and that's afforded you some margin improvement.
I guess the question -- the addendum to that -- is, as we do reopen at whatever pace that is, and you do have to relayer in labor as your customers are more occupied and need more services, do you expect that you'll be able to retain some of this margin, all of this margin, or do you feel like you'll have to progressively give some of the profit margins back to your customers? I was just wondering how you see that playing out.
Scott Salmirs -- President and Chief Executive Officer
Sure. So, look, I think the labor efficiencies that we're getting now, because -- remember, offices are 10% occupied, right? And think of this. Its 10% occupied, but you have -- our revenues are only 10% down. You could make a case, why aren't they 90% down, right?
So, I think as we restaff, we'll lose some of that labor arbitrage. Our goal is to maintain some of it, but we're certainly not going to maintain all of it. That wouldn't be sensible. So, I think we're going to capture permanently some of that labor arbitrage. And then from the COVID-related activities, I think we're going to retain a fair amount of that just because of the awareness.
And the flipside to all this, Andy, is that as we reoccupy, it's going to turn into a revenue story, right? Because people are going to be back and --. So, I think we'll start seeing growth again. And we're thinking that's probably more of a back half story.
For us, it's always been about momentum. We just want confidence and momentum. So, I think the vaccine is going to start doing that. So, whereas you may see a little trail down in margin from the labor efficiency, you'll see revenue go up.
Andrew Wittmann -- Baird -- Analyst
That makes sense. If you'll offer me just one last question. I wanted to ask about some of the investments. I think you said the word investments a few times on the conference call. It does seem pretty material here. And I would just want to make sure that we're all understanding this correctly.
I think when fiscal 2020 started before the pandemic, so pre-pandemic guidance, you guys were talking about putting in an incremental like $20 million mostly related to IT initiatives and digitization process things. If I'm not mistaken, pretty sure that's correct. But now, we heard here in this quarter that it was $10 million up just for this quarter and that there's another $10 million for next quarter. So, that's $20 million already and it feels like the run rate of investments, obviously, therefore, is a lot larger than you thought about at a year ago at this time.
So, I guess, first of all, can you validate that? And then the second thing is, what else are customers and shareholders going to be benefiting from? How else is that going to be seen in your results so that we know that you're getting a good return on these incremental investments?
Scott Salmirs -- President and Chief Executive Officer
Yes. No, that's a great question. So, I think -- let's go back where you started. Pre-pandemic, we were talking about the ERP, right? That was the big deal for us. And we did say that we were going to pause that, because we were -- obviously, it was a liquidity event, right, the pandemic.
So, as we started getting strong from a liquidity standpoint in our results, we said we got to go back at this again. But I think the pandemic changed so much and it caused us to rethink our longer-term tech roadmap. And with a remote workforce, with -- whether ABM and with clients being remote, we said we have to rethink that.
So, we're going through this, what we would call an exploration phase of how do we move forward, how do we create this digital platform, how do we look at how we're going to interact with clients, and how do we look at how we're going to interact with our workforce from a workforce management standpoint.
So, all that is under way and that's the investments that you're really seeing when you talk about that $20 million, the $10 million and the $10 million. And it's all going to be founded on the ERP system as the first leg of this thing, right? Because you need to have your data. You need to have a good financial system.
So, I think as the year unfolds, we'll have a better story of how much we're spending, how much will be capitalized versus opex. So, we'll be thinking about that. And so, we'll give you more color as it goes on, as the strategy framework shapes up. But I think the backdrop to all this is we're going to be prudent. We are still in the middle of the pandemic. So even with these investments, Andy, if things get squishy in the economy with resurgences, we could always pull those back. Was that helpful?
Andrew Wittmann -- Baird -- Analyst
It is. Thank you very much. Happy New Year. Happy holidays to everyone.
Scott Salmirs -- President and Chief Executive Officer
Thank you.
Operator
Our next question is from Sean Eastman with KeyBanc Capital Markets. Please proceed.
Sean Eastman -- KeyBanc Capital Markets -- Analyst
Hi, team. Thanks for taking my questions; and Earl, welcome. Welcome.
Earl Ellis -- Executive Vice President and Chief Financial Officer
Thank you, Sean.
Sean Eastman -- KeyBanc Capital Markets -- Analyst
I wanted to go back to just the sustainability and margins. I'm just trying to understand this transition from shorter term planning, work order dynamic to EnhancedClean uptake. What has been sort of a margin impact from moving over to that more permanent contract structure within EnhancedClean, and maybe you could just comment on the uptake on EnhancedClean since inception there?
Scott Salmirs -- President and Chief Executive Officer
That's great. I'm glad you asked that, actually, because we can clarify that. So, when you think of pandemic-related activities, which -- and just think large scale disinfecting spaces, right? And I think we've talked about this before. It's basically the types of chemicals that we were using in pantries and in bathrooms is now being used in general office space to disinfect, right?
And there's two ways that clients are going about it. There is a hiring us based on a work order basis, which, again, just to make it real simple, they talk to us on a Monday and say, "Hey, Thursday night, can you come and disinfect and could you bring two more people to take care of high touch surfaces?"
So, that's one way. And then the other way is what we call the branded EnhancedClean, where a client will come to us and say, "Listen, I want to talk about a longer-term program over the next three, six, nine months. So, can we just make sure like every night you come and you disinfect, we have four people permanently, right?
So, work orders are short term in nature and EnhancedClean is longer term. We're seeing similar margins in both, and they're not competitive, right? And taking a work -- a client that's on a work order, and moving on to EnhancedClean, if we don't do that, it's really not a fail. It's really dictated by client themselves, because you may be a client that's saying, "Listen, I can't really judge yet the occupancy cadence of my team. I'm not sure how many people are coming back, when they're coming back. I don't want to commit to a longer-term spec right now."
It could be a client that's saying, "The pandemic has shifted our business. We're having our own financial issues right now, so I don't want to commit to the longer-term, so let's just do this on a short term basis."
So, they're not competitive projects. And we like EnhancedClean better because we always like -- like any business, you want to lock into a longer term contract. But in our mind, work order is not a sale. It's just a reflection of a client's own situation. And if you think about what we did this year, $300 million worth of pandemic and EnhancedClean activities in such a short period of time; because, remember, COVID wasn't a full year.
So, I think we're super excited about that. And you know the $300 million that we did in sales in this area, ended up being $200 million in a year on the P&L, and we expect that to more than double next year.
Sean Eastman -- KeyBanc Capital Markets -- Analyst
Okay. Super helpful. And then also just piggybacking on Andy's question, just wanted to understand as we think about, and I don't want to steal the thunder of the Strategy Day next year, but as we think this digital transformation, leveraging data, is it more of a market share angle? Is it a customer stickiness angle or is it a margin angle? Just sort of curious how you're thinking about that, that payback and that benefit from these investments?
Earl Ellis -- Executive Vice President and Chief Financial Officer
Sure. That's -- it's an element of all three, right? But clearly, the key to our future is, how do you connect better with clients, how do you give them data, dashboards, insights that is going to make them more sticky with us, right, where they don't want to detach from us, right? But then there is a whole other element internally about how we manage our workforce. More and more it's a mobile workforce, right? So what are the tools that we could give our team in terms of task orders every day, safety moments in the morning, how could they punch in and punch out.
So, the ability to like to enhance our workforce and create margin on labor management by being more efficient by dealing with our workforce in real-times through digital tools, it's just phenomenal. And you'll find that there are a lot of service companies, especially with a distributed workforce, that are all working on these tools.
So, we're just trying to jump ahead of it. And I think in the short-term, it's going to be about kind of stickiness with clients. It's going to be about getting a data foundation. Because if you don't have good data, there's no point, right? So you have to create a data framework. And then over the long-term, if we can actuate and activate on our distributed workforce, we expect to see margin accretion there for sure.
Sean Eastman -- KeyBanc Capital Markets -- Analyst
Okay. Got you. And then one last one from me. I mean, it is noteworthy to see you guys exiting fiscal '20 in the low 2 times range from a leverage perspective. So, I just have to ask, how you're thinking about use of cash. Clearly, we have this digital transformation as a big priority, but it seems like you have enough dry powder to start looking at acquisitions or maybe even the buyback, so just curious how you guys are thinking about putting this huge free cash flow number in fiscal '20 to work?
Earl Ellis -- Executive Vice President and Chief Financial Officer
Yes, Sean. Thanks for the question. It's Earl. I would say a couple of things. First of all, I'd love to take the opportunity to really thank the teams for the focus and efforts put forward in really managing our cash this year. It's been amazing job, and that they've actually been able to take four days out. So, we are sitting on a fair amount of cash and we feel really good about our liquidity.
As far as our hierarchy of priorities, when looking at cash allocation, it first -- we first look at really investing in our organic growth while maintaining our dividend program; and then followed by that, looking at opportunities with respect to both M&A and share buybacks.
So, this strategy, we do not see this changing at this point in time. However, in light of the uncertainty with regards to our current environment, we are going to be very prudent and cautious with regards to making cash choices.
Operator
Our next question is from Tim Mulrooney with William Blair. Please proceed.
Tim Mulrooney -- William Blair -- Analyst
Good morning, Scott and Earl. Thank you for taking my questions. And Earl, congrats on the new gig.
Earl Ellis -- Executive Vice President and Chief Financial Officer
Thanks very much. Appreciate it.
Sean Eastman -- KeyBanc Capital Markets -- Analyst
Yes. So, I had a bunch of margin questions, but that's been beaten to death on this Q&A. So, I'm just going to ask a couple on your segments. So on your T&M segment, do you think the technology side of this business will be a headwind moving forward? I've seen quite a few articles cross my desk from tech company CEOs, who are planning to shift some of their workforce to a permanent work-from-home situation. Obviously, the manufacturing side should stay strong. But I'm curious how you're thinking about the tech side of the business from a three to five-year perspective?
Scott Salmirs -- President and Chief Executive Officer
Yes. So, good morning by the way.
Tim Mulrooney -- William Blair -- Analyst
Good morning.
Scott Salmirs -- President and Chief Executive Officer
I'm still bullish. I'm still bullish on the tech sector. I think that's the fuel of the economy. I think that that's where we're going to see growth as a country. And it's funny, you read about -- I'm reading the same things you're reading, right? When we're talking to our clients, all we keep seeing is, the Googles of the world, the Amazons of the world, taking more space right there, expanding in New York City now. They're expanding in Texas.
So, I think the narrative out there for them is work-from-home. But when you really drill down and you talk to employees, they quite like being back in the office. And so, I think there's going to be a mix. I think you'll see possibly less people in the office. But I think those companies are in such growth trajectories, Tim, that I think I'm just bullish on that sector.
And we've talked about this before, but I just want to keep hitting home because what I'm about to say is what I've heard from the top real estate companies of the country -- is, even if there is this foundational shift, where 25% of the people work-from-home, and that is a massive shift, right, for a pandemic that's only nine months in. But even if 25% of folks start working from home, you still have to space out your existing office space, because we've been jamming people in. We've been having people at trading desks and cubicles. So, I think you're going to see workplace shift. And so, I am as optimistic as ever in office space in general, because I think people want to collaborate and work. And on the tech side, I'm super optimistic.
Tim Mulrooney -- William Blair -- Analyst
Okay. Thank you, Scott. And then, on the Technical Solutions Business, which has been humming along really nicely the last several years, and then obviously, decelerated materially in 2020. How does this setup look for 2021? I know school budgets across the country are tight, and you can sell them on the payback period with your solutions, and indoor air quality is a growing concern, so. But also that schools are kind of distracted with other things right now. So, just how do you think about 2021. Is it a rebuilding year for Technical Solutions or do you think we could have potentially another strong year like we saw in 2018 and 2019?
Scott Salmirs -- President and Chief Executive Officer
Yes, I think Technical Solutions is going to be sequentially strong, right? So, I think the way you have to think about this, there's a couple of ways we look at it, right? First is our sales pipeline, right, which is really what are the qualified leads that we're going after.
We haven't closed them yet with the qualified leads that we're going after. Our pipeline is as big, if not bigger than ever. So that's pretty exciting for us.
But then you have to look at backlogs, which is the other term that we use. And backlog is committed work like signed contracts that we have, that we just haven't started yet, right? And our backlog is really strong for '21. It's just -- the other term that we use is churn rate, which is how fast do you take that backlog and turn it into actual work. We really have people in the field installing the equipment, right, changing out the lighting. And that's what's been the inhibitor. We're probably maybe 50% down in terms of churn rate recently, just because they haven't had access to the facilities, right, because of COVID.
So, we'd love to see the churn rate higher, it would be great, right. Because that's really -- that's in-year revenue. But as long as you have that strong backlog, you have the committed work. And that is really strong. And we think now with the vaccine and with the economy getting some momentum, I think our churn rates are going to start picking up. And I think this is going to be a big back half of the year story, which, you know, Tim, the back half is always the big time for ATS, right. Because, generally speaking, we do so much in school. So, that's the time when schools are closed and we have ultimate access. I think that's going to happen again.
So -- and you know the last thing I'll say, which is pretty obvious, the tailwinds in this business are just so strong with energy sustainability, all the green that's happening in society. And then you take that, coupled with what you mentioned, educational facilities being so strapped for cash. And this is a clear path to freeing up energy efficiency, still all in on Technical Solutions.
Tim Mulrooney -- William Blair -- Analyst
No. That's great color, Scott. I mean, backlog very strong, churn rate improving. That's very helpful. I appreciate your time this morning. Thank you, gentlemen.
Earl Ellis -- Executive Vice President and Chief Financial Officer
Thanks. Thanks for calling.
Operator
Our next question is from Marc Riddick with Sidoti & Company. Please proceed.
Marc Riddick -- Sidoti & Company -- Analyst
Hey, good morning, everyone.
Scott Salmirs -- President and Chief Executive Officer
Good morning.
Marc Riddick -- Sidoti & Company -- Analyst
Earl, welcome to ABM. Looking forward to working with you going forward.
I wanted to just touch a lot of -- first of all, thank you for being as thorough as you've been on your commentary. So, a lot of my questions have already been answered. But I wanted to touch a little bit on future pricing dynamic and how we should think about how that's evolved particularly with EnhancedClean. And I was wondering if you could touch a little bit maybe on the parts of the program that are gaining the greatest level of client receptivity, even if it's not necessarily what they did during the fourth quarter, what they're doing right now. Scott, if you could talk a little bit about what's the part that they like the most and maybe if you could talk about maybe what -- how that pricing structure has evolved so far and how it may evolve going forward? Thanks.
Scott Salmirs -- President and Chief Executive Officer
Sure. So, I think what they like particularly about ABM is the thoroughness of our program, because there's a lot of janitorial companies that are coming and saying we can disinfect, we can do electrostatic spraying. And certainly, we can do that, but we haven't taken that approach. We've basically said "No, no, no, we are different than everyone else, and we have an expert advisory panel with people from the outside from medical schools, from famed educational institutions that formed up this advisory panel with our own folks in the healthcare business." Because you know, we have a healthcare business.
So, they like the fact that they get this extra piece of advice outside of just looking at the World Health Organization or CDC. Then we're doing extra training of our people, and we have signage in place, right? We're doing evidence-based testing after we're done. And the way you think about it, you're literally going to -- if you have our EnhancedClean program for your facility, you literally get the proverbial sticker in the window that says, "This facility is EnhancedClean certified." And when people come back to work, what you have to establish, if you're a facility manager, is trust and safety. People have to feel good about where they're going to, for their own health and for their family's health, right?
So, when you're dealing with a company like an ABM, big public company that has these resources, we've really started differentiating ourselves. And you know what, Mark, because of all the things I just said, we are getting a premium on pricing, because it's not purely labor-based function. This is more of an up skilled function because of the training, because of the equipment that we use, and the chemicals we're using.
So, we're seeing elevated pricing. And that's not going to change only because of what we're doing and everything that has to go into it. So, we're enthusiastic about that. And we haven't had pushback yet, now, go in the future if clients are strange and they're looking for savings. My sense is -- and I bet you you'll agree with me, where they're not going to cut back is in disinfecting. I don't think any facility manager or landlord wants to say we're going into tough times, so we're not going to be disinfecting. So, we feel like we have some resilience in that product line. So, the arrows are pointing up in this area for us.
Marc Riddick -- Sidoti & Company -- Analyst
And I'm glad you mentioned that because that was one of the things I was sort of kind of wrestling with is, if you look at the videos and things that you have on the site. I was wondering if you could talk a little bit more about that visibility to the end user and how that kind of -- how you're seeing that evolving, because basically to put it in a different way, at least the way I'm looking at it, it's almost like -- A, it's a branding extension; B, it's kind of like a good housekeeping seal of approval that is going to now be in people's visuals going forward.
So, I was wondering if you could talk a little bit about that, because that basically to me seems like something that's going to expand your brand going forward for years to come. Is that a reasonable way of looking at this?
Scott Salmirs -- President and Chief Executive Officer
Yes, it is. I'm so glad you brought that up, because this is the first time in ABM's history that we productized a service, right? EnhancedClean, registered trademark. It's our product, if you will, for a service company, and we've done a ton of social media outreach. We've been branding it Safety Seen, and there's been ad campaigns on the web. We have -- we're going to be rolling out in calendar year 2021, a very aggressive campaign. And we've talked about the investments and that was brought up earlier by Andy. And we've been so focused on the IT side, but we're going to be investing in EnhancedClean too. That's part of our investments.
We're going to take this and run with it. Awareness is heightened and it's such an amazing opportunity for a company like ABM and the resources we have, to differentiate ourselves between our competitors, which largely speaking are smaller regional companies that just don't have the ability to put together an expert advisory council or to do the kind of social media outreach that we're doing and the branding and the advertising.
So, there's a lot more to come, and really excited to follow-up with you. Remember this question, because we'll be talking about it on the next quarterly call.
Marc Riddick -- Sidoti & Company -- Analyst
Excellent. Thank you very much.
Operator
Our next question is from Tate Sullivan with Maxim Group. Please proceed.
Tate Sullivan -- Maxim Group -- Analyst
Hi. Thank you. Good morning, everyone; and welcome, Earl. And just a follow-up questions. Scott, on Technical Services -- and thanks for all the detail on there, and I understand that Theme Park related project is -- it sounds like that's a small end market in Technical Solutions for you. But can you remind us, is most of your other work in the backlog for Technical Solutions, education, or can you provide more context on that market exposure for your backlog?
Scott Salmirs -- President and Chief Executive Officer
Yes. Yes. We really have two foundational areas of Technical Solutions, the education space, which is a large majority, and then we do a lot of government work, whether it's mission critical work -- we have special clearances that we do for the government and just in general, government buildings. It's a sector that we've been growing in. So yes, the Theme Park one was a little out of what we normally do. But in terms of -- from a safety and security standpoint, you should be thinking of that backlog, as education and government facilities.
Tate Sullivan -- Maxim Group -- Analyst
Thank you. And has the bidding activity for Technical Solutions just shut down or are there still opportunities out there in Technical Solutions?
Scott Salmirs -- President and Chief Executive Officer
Yes, no. It's actually going the other way. It's banking up right now. We're seeing more activity. And I would also remind you from a salesperson's standpoint we cut back on sales people in 2020. From this standpoint, right, we furloughed people, we've reduced hours. All the things you do in -- I say it has hitting, but the liquidity playbook, right. So, now we're getting back on the track of hiring sales people. We historically -- over the last couple of years -- have targeted net increases of 10% in sales people. And if you remember, the majority of those are Technical Solutions people. And what we typically say is we're going to hire 20%, but 10% would fall out of the bottom just because we keep raising the bar. This year, our aspiration is to grow by 20%.
So, we're going to be very aggressive about bringing people in, really strong people that understand Technical Solutions. Because again, the opportunities are so strong, especially on the education side, where every single community has cut their education budget and are cutting teachers and after-school programs. And we have the answer. We have the answer in our Technical Solutions segment. So, super optimistic.
Tate Sullivan -- Maxim Group -- Analyst
Great. And telling on that, just last one from me. I mean, how receptive are your clients today in the current environment to hearing about your integrated solution? I mean, I'm talking about combining other facility services into contracts and in addition to janitorial services. Can you comment just on that kind of -- those kind of conversations you're having, please?
Scott Salmirs -- President and Chief Executive Officer
I think more of the conversations are cross-selling within our industry groups, right. So, it's less about I want to hear more about how parking and janitorial are integrated. It's more about -- if you think about our Education segment, our proper education segment, where we're starting to see traction. If we get a janitorial bid for -- in our Education segment, we'll come back and we'll respond to that bid. But we'll also say, "Hey, here's alternative B." We can also look at a bundled energy solution offering that could lower your costs on your facility.
So, if you hire ABM for your janitorial, we could really come up with a solution that could really offset some of those janitorial costs. So, there's been a lot of reception from clients in our Education segment to hearing about how we can enhance a basic janitorial RFP. That's really encouraging for us.
Operator
We have time for one final question from David Silver with C.L. King. Please proceed.
David Silver -- C.L. King -- Analyst
Yes, hi. Thank you. Scott, I wanted to follow-up on your comment in your prepared remarks about shifting from defense to offense. And in particular, I was just wondering about the client, their customer choices that you might be making. In other words, Scott, I think, historically for you, the right customer retention rate was 100%, if not more. And I'm just wondering, but obviously the business environment has changed a lot. You've come out with a differentiated offering. You're investing in training and other kind of upgrading of the workforce. So, is this the type of environment where over time you might be trying to target a particular, more suitable or more ideal customer demographic, ones that are willing to pay the higher prices for the upgraded services that you're investing in?
And maybe going back couple of years ago, I mean you've talked about calling your contract portfolio kind of lower margin or less attractive forms of business. And I'm just wondering again that that was more defensive, but maybe now do you target certain customer groups that maybe are not fully represented in, but the ones that represent the most ideal fit with the way your service offering is evolving? Thanks.
Scott Salmirs -- President and Chief Executive Officer
Yes, that's a good question. There's a lot there to unpack. But what I would say is that our sales group is really focused on that. We have an area called sales effectiveness, which are just basically data analysts that look at all these segments and figure out where we want to play, right, which is super important. You may have seen or we've talked about in the past how we've started gravitating toward retail distribution, like kind of the Amazons and the Walmart's of the world, people that -- because that's a really strong growing segment and we've been doing really well there. And we see that as opportunity in the future.
And historically, our retention rate, last year, you may remember it was about 90%. This year we're 92% to 93%, which is a really good trend and kind of where we're looking to go in the future.
So, I think this is something that we'll always be focused on. And when we -- when I talked about, going from defense to offence, that was really more in terms of investing into the business and making these investments.
I have to tell you there's so much data out there from past recessions, past -- we have bumps in the road like we're seeing here with the pandemic. There's so much data out there about companies, who at this time kind of hunker down and go on with defensive, versus companies who take the opportunity to go on the offensive, and that's extraordinary in terms of the long-term profitability of successive companies to take this opportunity to build on the offense.
And that's exactly what we're doing about investing in, again cautiously investing in. But that's where that comment came from, which is we're not hunkering down. We're not going into shelf. We're doing really well. We're liquid. We're having record profitability, record growth. So, it's really a sentiment that you look at ABM and you look at a company that's excited about the future and excited to have the ability to go on offense.
David Silver -- C.L. King -- Analyst
Okay. Thank you very much.
Scott Salmirs -- President and Chief Executive Officer
Thank you.
Operator
We have reached the end of our question-and-answer session. I would like to turn it back over to management for closing remarks.
Scott Salmirs -- President and Chief Executive Officer
Yes, well thanks, everyone, for coming on today's call. I'll just make it brief. I think you've heard the sentiment here. We're super excited about where ABM is going. I think '21 is going to be a great year for us. There's still a lot of uncertainty, but we're going to navigate it as adeptly as we did in 2020. And just we're going to be continuing to build the muscle strength.
But the most important thing I can say at this time is just have an amazing holiday everybody. And more importantly, don't let your guard down. Stay safe and let's look forward to 2021 and an effective vaccine, and we'll get back to normal. So, thanks, everybody.
Operator
[Operator Closing Remarks]
Duration: 67 minutes
Call participants:
Susie A. Kim -- Vice President of Investor Relations and Treasurer
Scott Salmirs -- President and Chief Executive Officer
Earl Ellis -- Executive Vice President and Chief Financial Officer
Andrew Wittmann -- Baird -- Analyst
Sean Eastman -- KeyBanc Capital Markets -- Analyst
Tim Mulrooney -- William Blair -- Analyst
Marc Riddick -- Sidoti & Company -- Analyst
Tate Sullivan -- Maxim Group -- Analyst
David Silver -- C.L. King -- Analyst
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | ABM Industries Inc (NYSE: ABM) Q4 2020 Earnings Call Dec 17, 2020, 8:30 a.m. Welcome to ABM Industries Fourth Quarter 2020 Earnings Call. 10 stocks we like better than ABM Industries When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. | ABM Industries Inc (NYSE: ABM) Q4 2020 Earnings Call Dec 17, 2020, 8:30 a.m. Welcome to ABM Industries Fourth Quarter 2020 Earnings Call. 10 stocks we like better than ABM Industries When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. | ABM Industries Inc (NYSE: ABM) Q4 2020 Earnings Call Dec 17, 2020, 8:30 a.m. Welcome to ABM Industries Fourth Quarter 2020 Earnings Call. 10 stocks we like better than ABM Industries When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. | ABM Industries Inc (NYSE: ABM) Q4 2020 Earnings Call Dec 17, 2020, 8:30 a.m. Welcome to ABM Industries Fourth Quarter 2020 Earnings Call. 10 stocks we like better than ABM Industries When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. |
29344.0 | 2020-12-17 00:00:00 UTC | BUZZ-U.S. STOCKS ON THE MOVE-Roku, Progenity, MacroGenics | ABM | https://www.nasdaq.com/articles/buzz-u.s.-stocks-on-the-move-roku-progenity-macrogenics-2020-12-17 | nan | nan | Eikon search string for individual stock moves: STXBZ
The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi
The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh
Wall Street's main indexes were set to gain on Thursday on increased optimism over a coronavirus stimulus bill, while an unexpected rise in weekly jobless claims pointed to further economic stress from the COVID-19 pandemic. .N
At 8:29 ET, Dow e-minis 1YMc1 were up 0.39% at 30,279. S&P 500 e-minis ESc1 were up 0.53% at 3,720.25, while Nasdaq 100 e-minis NQc1 were up 0.49% at 12,727.5. The top three NYSE percentage gainers premarket .PRPG.NQ: ** Rite Aid Corp , up 21.8% ** Korea Electric Power , up 9.3% ** Aluminum Corp of China , up 8.0% The top three NYSE percentage losers premarket .PRPL.NQ: ** Rayonier Inc , down 12.8% ** GasLog Partners , down 6.6% ** ABM Industries Inc ABM.N, down 5.8% The top three Nasdaq percentage gainers premarket .PRPG.O: ** Scopus Biopharma Inc , up 216.7% ** Oriental Culture Holding Ltd , up 210.3% ** Diginex Ltd , up 55.3% The top three Nasdaq percentage losers premarket .PRPL.O: ** Triterras Inc , down 32% ** Mediaco Holding Inc , down 20.8% ** Triterras Inc , down 17.3% ** PayPal PYPL.O: up 2.2% premarket BUZZ-Up as Jefferies adds to 'Sweet 16' list of tech stocks ** Marathon Patent Group MARA.O: up 22.2% premarket BUZZ-Crypto stocks gain premarket as Bitcoin hits all-time high ** Novavax NVAX.O: up 2.6% premarket BUZZ-Up after EU concludes talks to secure 200 mln COVID-19 vaccine doses ** Uxin Limited UXIN.O: down 12.1% premarket BUZZ-Drops as Q2 loss widens, revenue plunges ** Evolus EOLS.O: up 39.5% premarket BUZZ-Rises as Street views U.S. trade commission's ruling as positive ** MacroGenics MGNX.O: up 16.1% premarket BUZZ-Jumps as U.S. FDA approves breast cancer drug ** Roku ROKU.O: up 6.5% premarket BUZZ-Rises on HBO Max streaming deal, PT hikes ** Progenity Inc PROG.O: up 10.8% premarket BUZZ-Up on expanding U.S. COVID-19 testing services ** Zynerba ZYNE.O: down 9.3% premarket BUZZ-Down after FDA recommends additional trial of neurological disorder drug
(Compiled by Rithika Krishna)
((rithika.krishna@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The top three NYSE percentage gainers premarket .PRPG.NQ: ** Rite Aid Corp , up 21.8% ** Korea Electric Power , up 9.3% ** Aluminum Corp of China , up 8.0% The top three NYSE percentage losers premarket .PRPL.NQ: ** Rayonier Inc , down 12.8% ** GasLog Partners , down 6.6% ** ABM Industries Inc ABM.N, down 5.8% The top three Nasdaq percentage gainers premarket .PRPG.O: ** Scopus Biopharma Inc , up 216.7% ** Oriental Culture Holding Ltd , up 210.3% ** Diginex Ltd , up 55.3% The top three Nasdaq percentage losers premarket .PRPL.O: ** Triterras Inc , down 32% ** Mediaco Holding Inc , down 20.8% ** Triterras Inc , down 17.3% ** PayPal PYPL.O: up 2.2% premarket BUZZ-Up as Jefferies adds to 'Sweet 16' list of tech stocks ** Marathon Patent Group MARA.O: up 22.2% premarket BUZZ-Crypto stocks gain premarket as Bitcoin hits all-time high ** Novavax NVAX.O: up 2.6% premarket BUZZ-Up after EU concludes talks to secure 200 mln COVID-19 vaccine doses ** Uxin Limited UXIN.O: down 12.1% premarket BUZZ-Drops as Q2 loss widens, revenue plunges ** Evolus EOLS.O: up 39.5% premarket BUZZ-Rises as Street views U.S. trade commission's ruling as positive ** MacroGenics MGNX.O: up 16.1% premarket BUZZ-Jumps as U.S. FDA approves breast cancer drug ** Roku ROKU.O: up 6.5% premarket BUZZ-Rises on HBO Max streaming deal, PT hikes ** Progenity Inc PROG.O: up 10.8% premarket BUZZ-Up on expanding U.S. COVID-19 testing services ** Zynerba ZYNE.O: down 9.3% premarket BUZZ-Down after FDA recommends additional trial of neurological disorder drug (Compiled by Rithika Krishna) ((rithika.krishna@thomsonreuters.com)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh Wall Street's main indexes were set to gain on Thursday on increased optimism over a coronavirus stimulus bill, while an unexpected rise in weekly jobless claims pointed to further economic stress from the COVID-19 pandemic. .N At 8:29 ET, Dow e-minis 1YMc1 were up 0.39% at 30,279. | The top three NYSE percentage gainers premarket .PRPG.NQ: ** Rite Aid Corp , up 21.8% ** Korea Electric Power , up 9.3% ** Aluminum Corp of China , up 8.0% The top three NYSE percentage losers premarket .PRPL.NQ: ** Rayonier Inc , down 12.8% ** GasLog Partners , down 6.6% ** ABM Industries Inc ABM.N, down 5.8% The top three Nasdaq percentage gainers premarket .PRPG.O: ** Scopus Biopharma Inc , up 216.7% ** Oriental Culture Holding Ltd , up 210.3% ** Diginex Ltd , up 55.3% The top three Nasdaq percentage losers premarket .PRPL.O: ** Triterras Inc , down 32% ** Mediaco Holding Inc , down 20.8% ** Triterras Inc , down 17.3% ** PayPal PYPL.O: up 2.2% premarket BUZZ-Up as Jefferies adds to 'Sweet 16' list of tech stocks ** Marathon Patent Group MARA.O: up 22.2% premarket BUZZ-Crypto stocks gain premarket as Bitcoin hits all-time high ** Novavax NVAX.O: up 2.6% premarket BUZZ-Up after EU concludes talks to secure 200 mln COVID-19 vaccine doses ** Uxin Limited UXIN.O: down 12.1% premarket BUZZ-Drops as Q2 loss widens, revenue plunges ** Evolus EOLS.O: up 39.5% premarket BUZZ-Rises as Street views U.S. trade commission's ruling as positive ** MacroGenics MGNX.O: up 16.1% premarket BUZZ-Jumps as U.S. FDA approves breast cancer drug ** Roku ROKU.O: up 6.5% premarket BUZZ-Rises on HBO Max streaming deal, PT hikes ** Progenity Inc PROG.O: up 10.8% premarket BUZZ-Up on expanding U.S. COVID-19 testing services ** Zynerba ZYNE.O: down 9.3% premarket BUZZ-Down after FDA recommends additional trial of neurological disorder drug (Compiled by Rithika Krishna) ((rithika.krishna@thomsonreuters.com)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh Wall Street's main indexes were set to gain on Thursday on increased optimism over a coronavirus stimulus bill, while an unexpected rise in weekly jobless claims pointed to further economic stress from the COVID-19 pandemic. S&P 500 e-minis ESc1 were up 0.53% at 3,720.25, while Nasdaq 100 e-minis NQc1 were up 0.49% at 12,727.5. | The top three NYSE percentage gainers premarket .PRPG.NQ: ** Rite Aid Corp , up 21.8% ** Korea Electric Power , up 9.3% ** Aluminum Corp of China , up 8.0% The top three NYSE percentage losers premarket .PRPL.NQ: ** Rayonier Inc , down 12.8% ** GasLog Partners , down 6.6% ** ABM Industries Inc ABM.N, down 5.8% The top three Nasdaq percentage gainers premarket .PRPG.O: ** Scopus Biopharma Inc , up 216.7% ** Oriental Culture Holding Ltd , up 210.3% ** Diginex Ltd , up 55.3% The top three Nasdaq percentage losers premarket .PRPL.O: ** Triterras Inc , down 32% ** Mediaco Holding Inc , down 20.8% ** Triterras Inc , down 17.3% ** PayPal PYPL.O: up 2.2% premarket BUZZ-Up as Jefferies adds to 'Sweet 16' list of tech stocks ** Marathon Patent Group MARA.O: up 22.2% premarket BUZZ-Crypto stocks gain premarket as Bitcoin hits all-time high ** Novavax NVAX.O: up 2.6% premarket BUZZ-Up after EU concludes talks to secure 200 mln COVID-19 vaccine doses ** Uxin Limited UXIN.O: down 12.1% premarket BUZZ-Drops as Q2 loss widens, revenue plunges ** Evolus EOLS.O: up 39.5% premarket BUZZ-Rises as Street views U.S. trade commission's ruling as positive ** MacroGenics MGNX.O: up 16.1% premarket BUZZ-Jumps as U.S. FDA approves breast cancer drug ** Roku ROKU.O: up 6.5% premarket BUZZ-Rises on HBO Max streaming deal, PT hikes ** Progenity Inc PROG.O: up 10.8% premarket BUZZ-Up on expanding U.S. COVID-19 testing services ** Zynerba ZYNE.O: down 9.3% premarket BUZZ-Down after FDA recommends additional trial of neurological disorder drug (Compiled by Rithika Krishna) ((rithika.krishna@thomsonreuters.com)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh Wall Street's main indexes were set to gain on Thursday on increased optimism over a coronavirus stimulus bill, while an unexpected rise in weekly jobless claims pointed to further economic stress from the COVID-19 pandemic. S&P 500 e-minis ESc1 were up 0.53% at 3,720.25, while Nasdaq 100 e-minis NQc1 were up 0.49% at 12,727.5. | The top three NYSE percentage gainers premarket .PRPG.NQ: ** Rite Aid Corp , up 21.8% ** Korea Electric Power , up 9.3% ** Aluminum Corp of China , up 8.0% The top three NYSE percentage losers premarket .PRPL.NQ: ** Rayonier Inc , down 12.8% ** GasLog Partners , down 6.6% ** ABM Industries Inc ABM.N, down 5.8% The top three Nasdaq percentage gainers premarket .PRPG.O: ** Scopus Biopharma Inc , up 216.7% ** Oriental Culture Holding Ltd , up 210.3% ** Diginex Ltd , up 55.3% The top three Nasdaq percentage losers premarket .PRPL.O: ** Triterras Inc , down 32% ** Mediaco Holding Inc , down 20.8% ** Triterras Inc , down 17.3% ** PayPal PYPL.O: up 2.2% premarket BUZZ-Up as Jefferies adds to 'Sweet 16' list of tech stocks ** Marathon Patent Group MARA.O: up 22.2% premarket BUZZ-Crypto stocks gain premarket as Bitcoin hits all-time high ** Novavax NVAX.O: up 2.6% premarket BUZZ-Up after EU concludes talks to secure 200 mln COVID-19 vaccine doses ** Uxin Limited UXIN.O: down 12.1% premarket BUZZ-Drops as Q2 loss widens, revenue plunges ** Evolus EOLS.O: up 39.5% premarket BUZZ-Rises as Street views U.S. trade commission's ruling as positive ** MacroGenics MGNX.O: up 16.1% premarket BUZZ-Jumps as U.S. FDA approves breast cancer drug ** Roku ROKU.O: up 6.5% premarket BUZZ-Rises on HBO Max streaming deal, PT hikes ** Progenity Inc PROG.O: up 10.8% premarket BUZZ-Up on expanding U.S. COVID-19 testing services ** Zynerba ZYNE.O: down 9.3% premarket BUZZ-Down after FDA recommends additional trial of neurological disorder drug (Compiled by Rithika Krishna) ((rithika.krishna@thomsonreuters.com)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh Wall Street's main indexes were set to gain on Thursday on increased optimism over a coronavirus stimulus bill, while an unexpected rise in weekly jobless claims pointed to further economic stress from the COVID-19 pandemic. .N At 8:29 ET, Dow e-minis 1YMc1 were up 0.39% at 30,279. |
29345.0 | 2020-12-16 00:00:00 UTC | After-Hours Earnings Report for December 16, 2020 : LEN, ABM, DL | ABM | https://www.nasdaq.com/articles/after-hours-earnings-report-for-december-16-2020-%3A-len-abm-dl-2020-12-16 | nan | nan | The following companies are expected to report earnings after hours on 12/16/2020. Visit our Earnings Calendar for a full list of expected earnings releases.
Lennar Corporation (LEN) is reporting for the quarter ending November 30, 2020. The building (residential/commercial) company's consensus earnings per share forecast from the 6 analysts that follow the stock is $2.38. This value represents a 11.74% increase compared to the same quarter last year. Zacks Investment Research reports that the 2020 Price to Earnings ratio for LEN is 10.05 vs. an industry ratio of 11.10.
ABM Industries Incorporated (ABM) is reporting for the quarter ending October 31, 2020. The building maintenance & services company's consensus earnings per share forecast from the 4 analysts that follow the stock is $0.72. This value represents a 9.09% increase compared to the same quarter last year. Zacks Investment Research reports that the 2020 Price to Earnings ratio for ABM is 16.71 vs. an industry ratio of 24.80.
China Distance Education Holdings Limited (DL) is reporting for the quarter ending September 30, 2020. The internet content company's consensus earnings per share forecast from the 1 analyst that follows the stock is $0.24. This value represents a 41.46% decrease compared to the same quarter last year. Zacks Investment Research reports that the 2020 Price to Earnings ratio for DL is 23.51 vs. an industry ratio of 80.00.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | ABM Industries Incorporated (ABM) is reporting for the quarter ending October 31, 2020. Zacks Investment Research reports that the 2020 Price to Earnings ratio for ABM is 16.71 vs. an industry ratio of 24.80. The building maintenance & services company's consensus earnings per share forecast from the 4 analysts that follow the stock is $0.72. | Zacks Investment Research reports that the 2020 Price to Earnings ratio for ABM is 16.71 vs. an industry ratio of 24.80. ABM Industries Incorporated (ABM) is reporting for the quarter ending October 31, 2020. Zacks Investment Research reports that the 2020 Price to Earnings ratio for LEN is 10.05 vs. an industry ratio of 11.10. | Zacks Investment Research reports that the 2020 Price to Earnings ratio for ABM is 16.71 vs. an industry ratio of 24.80. ABM Industries Incorporated (ABM) is reporting for the quarter ending October 31, 2020. Zacks Investment Research reports that the 2020 Price to Earnings ratio for LEN is 10.05 vs. an industry ratio of 11.10. | ABM Industries Incorporated (ABM) is reporting for the quarter ending October 31, 2020. Zacks Investment Research reports that the 2020 Price to Earnings ratio for ABM is 16.71 vs. an industry ratio of 24.80. The following companies are expected to report earnings after hours on 12/16/2020. |
29346.0 | 2020-11-12 00:00:00 UTC | These Companies Make the Most (and Least) Money Per Worker | ABM | https://www.nasdaq.com/articles/these-companies-make-the-most-and-least-money-per-worker-2020-11-12 | nan | nan | When you study a company as a possible investment for your portfolio, you probably examine factors such as its debt and cash levels, the growth rates of its revenue and earnings, its profit margins, its return on equity, and its price-to-earnings (P/E) ratio. Those are all good to look at.
Another worthwhile measure to check out is this: profit per employee -- or, alternatively, revenue per employee. Here's a look at why you might want to assess a company's profit or revenue per employee, along with a list of companies with high and low scores in that metric.
Image source: Getty Images.
Revenue per employee
Looking at how much revenue a company generates per worker can tell you a lot. It's a measure of efficiency, for starters, as a high number means the company is able to bring in a lot of sales with relatively few workers. Comparing a company's revenue per employee with that of its peers can also let you see which company seems to be more efficient. After all, if you need a lot more workers to achieve the same revenue result as a rival, that means you're paying a lot more in salary and benefits, not to mention overhead related to those workers, such as space in offices and/or other worksites. It's not always worth comparing a company's number to other companies in different industries, as some industries simply require more or fewer workers.
It's also informative to check how a company's revenue per worker has changed over time. If the number is growing, the company is getting more efficient and workers more productive. If it's shrinking, you might want to look into why that might be happening.
Revenue numbers for companies can be found in financial statements issued quarterly by publicly traded companies -- on the income statement. (Note that some use the word revenue while others say sales -- they refer to the same thing.) It can be a bit trickier to find the number of employees. The number might be included in quarterly earnings reports or even on the website or in the company's boilerplate section at the end of a press release. You can usually find it in the company's annual 10-K report, too. Searching for the word "employees" or "associates" is usually productive.
Who brings in the most and least per worker?
So which businesses bring in the most money per worker? Here are lists of the top and bottom 10 companies in the U.S., presented by the folks at smallbusinessprices.co.uk in 2020. (Their methodology: "Using a seedlist from Fortune 500 and Share.com, we were able to look at the top performing companies' revenue figures and compared this to their number of employees.")
Here are the companies with the highest revenue per employee:
COMPANY
ANNUAL REVENUE
EMPLOYEES
REVENUE PER EMPLOYEE
A-Mark Precious Metals
$7.6 billion
184
$41.3 million
StoneX Group
$27.6 billion
1,701
$16.2 million
Federal National Mortgage Association (Fannie Mae)
$120 billion
7,400
$16.2 million
Federal Home Loan Mortgage Corp (Freddie Mac)
$73.6 billion
6,621
$11.1 million
Valero Energy
$111.4 billion
10,261
$10.9 million
PBF Energy
$27.2 billion
3,266
$8.3 million
AmerisourceBergen
$167.9 billion
20,500
$8.2 million
Phillips 66
$114.2 billion
14,200
$8.0 million
World Fuel Services
$39.8 billion
5,000
$8.0 million
NGL Energy Partners
$17.3 billion
2,400
$7.2 million
Data source: Smallbusinessprices.co.uk, using data from the Fortune 500 and Share.com.
And here are the U.S. companies with the lowest revenue per employee:
COMPANY
ANNUAL REVENUE
EMPLOYEES
REVENUE PER EMPLOYEE
Yum China Holdings
$8.4 billion
450,000
$18,700
Darden Restaurants
$8.1 billion
180,656
$44,726
ABM Industries
$6.4 billion
140,000
$46,016
Hilton Worldwide Holdings
$8.9 billion
169,000
$52,698
Cognizant Technology Solutions
$16.1 billion
281,600
$57,262
Aramark
$15.8 billion
227,200
$69,497
Starbucks
$XX billion
291,000
$84,947
Synnex
$XX billion
231,600
$86,588
Hanesbrands
$XX billion
68,000
$100,059
McDonald's
$XX billion
210,000
$100,120
Data source: Smallbusinessprices.co.uk, using data from the Fortune 500 and Share.com.
Image source: Getty Images.
Profits per employee
It can also be informative to check out profits per employee, and some investors prefer such numbers, because while a company might generate massive revenue, that doesn't necessarily translate to massive profits.
Below are profits per worker for a bunch of high-profile tech companies.
COMPANY
ANNUAL PROFIT
EMPLOYEES
PROFIT PER EMPLOYEE
Facebook
$18.5 billion
44,942
$411,308
Apple
$55.3 billion
137,000
$403,328
Alphabet
$34.3 billion
118,899
$288,842
Microsoft
$39.2 billion
144,000
$272,500
Lam Research
$2.2 billion
10,700
$204,804
NVIDIA
$2.8 billion
13,775
$202,976
Intel
$21.0 billion
110,800
$189,964
Booking Holdings
$4.9 billion
26,400
$184,280
Micron Technology
$6.3 billion
37,000
$170,622
Texas Instruments
$5.0 billion
29,768
$168,537
Data source: Fortune.com, using data by Tipalti.
As you study companies to see which ones might deserve berths in your portfolio, take a look at revenue -- and/or profit -- per employee to see how efficient and productive they are.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Yum China Holdings $8.4 billion 450,000 $18,700 Darden Restaurants $8.1 billion 180,656 $44,726 ABM Industries $6.4 billion 140,000 $46,016 Hilton Worldwide Holdings $8.9 billion 169,000 $52,698 Cognizant Technology Solutions $16.1 billion 281,600 $57,262 Aramark $15.8 billion 227,200 $69,497 Starbucks $XX billion 291,000 $84,947 Synnex $XX billion 231,600 $86,588 Hanesbrands $XX billion 68,000 $100,059 McDonald's $XX billion 210,000 $100,120 Data source: Smallbusinessprices.co.uk, using data from the Fortune 500 and Share.com. When you study a company as a possible investment for your portfolio, you probably examine factors such as its debt and cash levels, the growth rates of its revenue and earnings, its profit margins, its return on equity, and its price-to-earnings (P/E) ratio. It's a measure of efficiency, for starters, as a high number means the company is able to bring in a lot of sales with relatively few workers. | Yum China Holdings $8.4 billion 450,000 $18,700 Darden Restaurants $8.1 billion 180,656 $44,726 ABM Industries $6.4 billion 140,000 $46,016 Hilton Worldwide Holdings $8.9 billion 169,000 $52,698 Cognizant Technology Solutions $16.1 billion 281,600 $57,262 Aramark $15.8 billion 227,200 $69,497 Starbucks $XX billion 291,000 $84,947 Synnex $XX billion 231,600 $86,588 Hanesbrands $XX billion 68,000 $100,059 McDonald's $XX billion 210,000 $100,120 Data source: Smallbusinessprices.co.uk, using data from the Fortune 500 and Share.com. A-Mark Precious Metals $7.6 billion 184 $41.3 million StoneX Group $27.6 billion 1,701 $16.2 million Federal National Mortgage Association (Fannie Mae) $120 billion 7,400 $16.2 million Federal Home Loan Mortgage Corp (Freddie Mac) $73.6 billion 6,621 $11.1 million Valero Energy $111.4 billion 10,261 $10.9 million PBF Energy $27.2 billion 3,266 $8.3 million AmerisourceBergen $167.9 billion 20,500 $8.2 million Phillips 66 $114.2 billion 14,200 $8.0 million World Fuel Services $39.8 billion 5,000 $8.0 million NGL Energy Partners $17.3 billion 2,400 $7.2 million Data source: Smallbusinessprices.co.uk, using data from the Fortune 500 and Share.com. The Motley Fool owns shares of and recommends Alphabet (A shares), Alphabet (C shares), Apple, Booking Holdings, Cognizant Technology Solutions, Facebook, Lam Research, Microsoft, NVIDIA, and Starbucks. | Yum China Holdings $8.4 billion 450,000 $18,700 Darden Restaurants $8.1 billion 180,656 $44,726 ABM Industries $6.4 billion 140,000 $46,016 Hilton Worldwide Holdings $8.9 billion 169,000 $52,698 Cognizant Technology Solutions $16.1 billion 281,600 $57,262 Aramark $15.8 billion 227,200 $69,497 Starbucks $XX billion 291,000 $84,947 Synnex $XX billion 231,600 $86,588 Hanesbrands $XX billion 68,000 $100,059 McDonald's $XX billion 210,000 $100,120 Data source: Smallbusinessprices.co.uk, using data from the Fortune 500 and Share.com. A-Mark Precious Metals $7.6 billion 184 $41.3 million StoneX Group $27.6 billion 1,701 $16.2 million Federal National Mortgage Association (Fannie Mae) $120 billion 7,400 $16.2 million Federal Home Loan Mortgage Corp (Freddie Mac) $73.6 billion 6,621 $11.1 million Valero Energy $111.4 billion 10,261 $10.9 million PBF Energy $27.2 billion 3,266 $8.3 million AmerisourceBergen $167.9 billion 20,500 $8.2 million Phillips 66 $114.2 billion 14,200 $8.0 million World Fuel Services $39.8 billion 5,000 $8.0 million NGL Energy Partners $17.3 billion 2,400 $7.2 million Data source: Smallbusinessprices.co.uk, using data from the Fortune 500 and Share.com. Profits per employee It can also be informative to check out profits per employee, and some investors prefer such numbers, because while a company might generate massive revenue, that doesn't necessarily translate to massive profits. | Yum China Holdings $8.4 billion 450,000 $18,700 Darden Restaurants $8.1 billion 180,656 $44,726 ABM Industries $6.4 billion 140,000 $46,016 Hilton Worldwide Holdings $8.9 billion 169,000 $52,698 Cognizant Technology Solutions $16.1 billion 281,600 $57,262 Aramark $15.8 billion 227,200 $69,497 Starbucks $XX billion 291,000 $84,947 Synnex $XX billion 231,600 $86,588 Hanesbrands $XX billion 68,000 $100,059 McDonald's $XX billion 210,000 $100,120 Data source: Smallbusinessprices.co.uk, using data from the Fortune 500 and Share.com. Revenue per employee Looking at how much revenue a company generates per worker can tell you a lot. It's a measure of efficiency, for starters, as a high number means the company is able to bring in a lot of sales with relatively few workers. |
29347.0 | 2020-09-29 00:00:00 UTC | ABM Industries Incorporated (ABM) Ex-Dividend Date Scheduled for September 30, 2020 | ABM | https://www.nasdaq.com/articles/abm-industries-incorporated-abm-ex-dividend-date-scheduled-for-september-30-2020-2020-09 | nan | nan | ABM Industries Incorporated (ABM) will begin trading ex-dividend on September 30, 2020. A cash dividend payment of $0.185 per share is scheduled to be paid on November 02, 2020. Shareholders who purchased ABM prior to the ex-dividend date are eligible for the cash dividend payment. This marks the 4th quarter that ABM has paid the same dividend. At the current stock price of $37.46, the dividend yield is 1.98%.
The previous trading day's last sale of ABM was $37.46, representing a -8.14% decrease from the 52 week high of $40.78 and a 89.28% increase over the 52 week low of $19.79.
ABM is a part of the Finance sector, which includes companies such as Paychex, Inc. (PAYX) and Rollins, Inc. (ROL). ABM's current earnings per share, an indicator of a company's profitability, is -$.09. Zacks Investment Research reports ABM's forecasted earnings growth in 2020 as 20.12%, compared to an industry average of -3.6%.
For more information on the declaration, record and payment dates, visit the ABM Dividend History page. Our Dividend Calendar has the full list of stocks that have an ex-dividend today.
Interested in gaining exposure to ABM through an Exchange Traded Fund [ETF]?
The following ETF(s) have ABM as a top-10 holding:
VanEck Vectors Environmental Services ETF (EVX)
Invesco S&P SmallCap Industrials ETF (PSCI)
Pacer Funds (CALF)
SPDR S&P 600 Small Cap Value ETF (based on S&P SmallCap Value (SLYV)
iShares S&P SmallCap 600 Value ETF (IJS).
The top-performing ETF of this group is CALF with an increase of 30.31% over the last 100 days. EVX has the highest percent weighting of ABM at 3.67%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | ABM is a part of the Finance sector, which includes companies such as Paychex, Inc. (PAYX) and Rollins, Inc. (ROL). Zacks Investment Research reports ABM's forecasted earnings growth in 2020 as 20.12%, compared to an industry average of -3.6%. For more information on the declaration, record and payment dates, visit the ABM Dividend History page. | ABM Industries Incorporated (ABM) will begin trading ex-dividend on September 30, 2020. ABM's current earnings per share, an indicator of a company's profitability, is -$.09. The following ETF(s) have ABM as a top-10 holding: VanEck Vectors Environmental Services ETF (EVX) Invesco S&P SmallCap Industrials ETF (PSCI) Pacer Funds (CALF) SPDR S&P 600 Small Cap Value ETF (based on S&P SmallCap Value (SLYV) iShares S&P SmallCap 600 Value ETF (IJS). | ABM Industries Incorporated (ABM) will begin trading ex-dividend on September 30, 2020. Shareholders who purchased ABM prior to the ex-dividend date are eligible for the cash dividend payment. The following ETF(s) have ABM as a top-10 holding: VanEck Vectors Environmental Services ETF (EVX) Invesco S&P SmallCap Industrials ETF (PSCI) Pacer Funds (CALF) SPDR S&P 600 Small Cap Value ETF (based on S&P SmallCap Value (SLYV) iShares S&P SmallCap 600 Value ETF (IJS). | ABM's current earnings per share, an indicator of a company's profitability, is -$.09. The following ETF(s) have ABM as a top-10 holding: VanEck Vectors Environmental Services ETF (EVX) Invesco S&P SmallCap Industrials ETF (PSCI) Pacer Funds (CALF) SPDR S&P 600 Small Cap Value ETF (based on S&P SmallCap Value (SLYV) iShares S&P SmallCap 600 Value ETF (IJS). ABM Industries Incorporated (ABM) will begin trading ex-dividend on September 30, 2020. |
29348.0 | 2020-09-09 00:00:00 UTC | ABM Industries Inc (ABM) Q3 2020 Earnings Call Transcript | ABM | https://www.nasdaq.com/articles/abm-industries-inc-abm-q3-2020-earnings-call-transcript-2020-09-09 | nan | nan | Image source: The Motley Fool.
ABM Industries Inc (NYSE: ABM)
Q3 2020 Earnings Call
Sep 9, 2020, 8:30 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Greetings and welcome to the ABM Industries Inc. Q3 2020 Earnings Call. [Operator Instructions]
It is now my pleasure to introduce your host, Susie Kim, Vice President of Investor Relations and Treasurer. Thank you. You may begin.
Susie A. Kim -- Vice President of Investor Relations and Treasurer
Thank you all for joining us this morning. With us today are Scott Salmirs, our President and Chief Executive Officer; and Dean Chin, our Interim Chief Financial Officer. We issued our press release yesterday afternoon announcing our third quarter and fiscal 2020 financial results. A copy of this release and then the Company's slide presentation can be found on our corporate website.
Before we begin, I would like to remind you that our call and presentation today contain predictions, estimates and other forward-looking statements. Our use of the words estimate, expect, and similar expressions are intended to identify these statements. These statements represent our current judgment of what the future holds. While we believe them to be reasonable, these statements are subject to risks and uncertainties that could cause our actual results to differ materially. These factors are described in the slide that accompanies our presentation as well as in our filings with the SEC.
During the course of this call, certain non-GAAP financial information will be presented. A reconciliation of those numbers to GAAP financial measures is available at the end of the presentation and on the Company's website under the Investor tab.
I would now like to turn the call over to Scott.
Scott Salmirs -- President and Chief Executive Officer
Thanks, Susie. Good morning and thank you for joining us on today's call to discuss our third quarter results. As you saw in our press release, we reported revenues of $1.4 billion for the quarter. While this represents a 15% decrease versus last year, the aviation segment contributes more than half of that decline as you probably expect. Excluding aviation, revenue was down less than 8%. In addition, we saw trends improve as the quarter progressed across all of our other segments and we saw another record quarter of pandemic-driven work orders, particularly within the Business & Industry and Technology & Manufacturing segments. This offset some of the scope reductions that occurred with client disruptions and modified operations due to reduced occupancies.
We also expanded with key strategic accounts and other essential operations such as manufacturing facilities. Even within Technical Solutions, site access improved as the quarter advanced and we were able to restart churning through our strong backlog. So revenue has been resilient for us, especially when contrasted against the reduction in commerce during the quarter. And because of this dynamic nature of how our direct labor is structured, where we experienced scope reductions, we aligned staffing to match the work. This preserves margin and can even enhance it as we find efficiencies through labor strategies and other tight controls.
Our quarterly performance also reflected some difficult decisions we made early on to prepare us financially for the uncertainty of the pandemic, which was right in front of us. At the beginning of the quarter in May, we instituted temporary reductions in salary across certain staff and management, which included the executive team and the Board. We also temporarily furloughed and reduced hours for certain corporate staff. Unlike many firms, we reduced or suspended benefits such as our 401(k) matchings. These were really hard decisions that had to be made, but necessary to potentially protect liquidity and ensure business continuity during very uncertain times.
The combined impact of higher margin work orders, labor efficiencies and corporate actions led to our significant year-over-year expansion in profit. Income from continuing operations grew to $56 million or $0.83 per share and on an adjusted basis $50.1 million or $0.75 per share. Adjusted EBITDA margin rose to 7.9% versus 5.6% last year. So we couldn't be more pleased with our performance. And we continued being disciplined on collections and payables during the quarter. Cash flow from operations was approximately $130 million or $121 million on a free cash flow basis. This is one of our all-time highs and enabled us to achieve leverage of 2.2 times. Our team understood how much of a priority this was and the results speak for themselves.
Now that we successfully managed during the past six months, we've reversed many of the temporary cost reductions occurring during the third quarter. Of course, this doesn't mean our intense focus on managing the business through changing conditions will relax in anyway. In fact, much of the discipline we invoked during the past few months is now incorporated into our standard operating procedures.
The health and safety of our team members and our clients has been our top priority and I'm so proud of the determination our people have shown during this time. We quickly adapted our standard operating practices to follow the guidelines of the CDC and other government authorities as well as our own advisory council and as an essential service provider, our team members were tasked with being agile and responsive to the rapidly changing needs of our clients as they work to protect their employees, their customers and their facilities. The feedback has been overwhelming and we believe this will have a lasting impact on retention.
Now, I could spend hours on this call highlighting example after example of how our team members have made a difference during this stressful time. In the Northwest Independent School District of Fort Worth, Texas, our education team members helped the district conduct four modified graduation ceremonies by cleaning and disinfecting throughout the events. Administrators were able to preserve the special occasion for nearly 1,500 students and create a celebratory safe and sanitized environment.
In the UK, our ABM team members were among those recognized by Prince Charles and London's Mayor Sadiq Khan for our contributions in keeping the city's transit system, the Transport for London clean and hygienic. And as you most likely have seen, our frontline workers have been featured by numerous media outlets for our critical disinfection work across airports and airlines as the aviation industry continues to respond to the pandemic. Again, these few examples only touch on the many, many instances of ABM fulfilling our mission of making a difference.
As COVID persists, I continue to be inspired by how our team members face adversity with commitment and pride. These results don't happen by accident, they happen through dedication to each other, operational excellence and strong client relationships. Now, what do these results mean for the full year and beyond? As we stated in our release, we feel it would be imprudent to attempt the guidance outlook at this time. Recent events have redefined the concept of uncertainty and clients are still determining what the next few months will look like for them and we are also unsure of how close it will play out. Dean will go through detail on some of the assumptions that could be considered at this juncture, but understand, information continues to come in daily and we are still in a very dynamic period.
I mean, more to the point, as I mentioned earlier, we saw top line trends improve throughout the quarter. Is this encouraging? Absolutely. However, we can't ignore how recoveries, reopenings and resurgences are still at different stages across industries and regions. We are not at a point of sustainable clarity when it comes to questions like how long the schools remain open or closed, how quickly will air travel start returning, will there be a COVID spike this fall or winter and what does that mean for office reoccupancy.
And the diversity within our portfolio means there could be a variety of outcomes as well. Look at the variance between industries like aviation versus technology and manufacturing. As one sector faces headwinds, the other is remaining strong. And headwinds don't necessarily mean lower profitability. Our variable cost structure especially with fixed fee and performance-driven contracts have been a particular strength for us. So a lot remains highly unknown and not necessarily linear to results, but more than ever, we appreciate the diversity in our portfolio mix.
Longer term, we firmly believe heightened awareness of safe and clean spaces is here to stay and we've continued to invest in our EnhancedClean program to meet our clients' needs. Our EnhancedClean program is a three-step approach that delivers healthy spaces with a certified disinfection process. We have an advisory council consisting of internal and external leading experts in infectious disease and industrial hygiene. This group will advise us on so many different aspects of ABM's business going forward and provide significant value to our clients as they return to their spaces safely, navigate change and deliver assurances to their employees, customers, and the public by demonstrating trustworthy cleaning and disinfection.
During the quarter, we formally kicked off the first wave of our EnhancedClean deployment plan targeting our top clients and educating them on this unique offering. This will be a cornerstone for sustaining some of the higher margin demand we are currently seeing. Client commitments are spanning terms of six to nine months at a significantly higher margin profile that is reflective of the value we're providing. Ultimately, the total penetration of work orders plus EnhancedClean can elevate our legacy margin profile regardless of operating environment.
In conjunction with the EnhancedClean launch, we recently unveiled a targeted media campaign called Safety Seen to generate demand. Visit our IR website or go to enhancedclean.com to watch the video. This is the most comprehensive marketing strategy we have developed at the firm and we couldn't be more enthusiastic. In fact, I'm thrilled to share that we recently crossed over the $100 million sales mark for our EnhancedClean program. So many of our prestigious clients have begun to sign up. Even clients like United Healthcare who are vested in the healthcare space and understand infection control, they want our services, which is tremendous validation. We are optimistic that we will continue growing our base, especially as we start to return to normalcy across our end markets and reoccupancy accelerates.
In a $100 million market, EnhancedClean is not the only milestone we reached. At the end of August, we crossed the $1 billion mark in new sales. As you know, this is typically our annual target. Normally, we would wait till the fourth quarter for a sales update, but to have achieved this in August, during such an unusual year, we are so much of commerce has paused, is yet another testament of how remarkably our teams have executed and we wanted to make sure we mention it on the call.
And we will continue to build and invest in our sales effort as we've seen the powerful results of a well-trained sales force and an ingrained sales culture across the enterprise. Additionally, we will restart projects that were put on hold as the pandemic developed. We intend to revisit areas like our IT roadmap. We couldn't be more pleased to have Melanie Kirkwood Ruiz on the team. As our new Chief Information Officer, she will be instrumental in determining how we reengage these projects and accelerate toward the digital future.
So despite the unpredictability of these extraordinary times, we are committed to driving the momentum we experienced during the third quarter by managing the financial, operational and strategic elements within our control. As our results have demonstrated, our service excellence remains unparalleled and we are focused on leveraging our strengths to enable our organization, our clients and our communities to emerge from this pandemic even stronger.
Before I turn the call over to Dean for our financial results, I want to comment on the social and cultural movements that are currently sweeping the country. As a representative of 140,000 team members who work and contribute in communities all across this country, there has never been a more powerful time to live our Company's core values of respect, integrity and trust. We have a responsibility to those who dedicate themselves to ABM every day. During the quarter, we launched an endeavor that we have been developing since the beginning of the year, ABM's culture and inclusion council. This committee of our team members will be responsible for aligning our overarching business strategy with diversity at ABM. We will shape our organizational priorities to continue to nurture and advance an inclusive workplace.
We also joined other New York City headquarter businesses through the Partnership for New York City to reassert our commitment to diversity and inclusion among our Board, executive leadership and our entire workforce. We will be supporting programs that reinforce and reflect that this is a top priority for ABM. Bolstering diversity is critical to our long-term success and our ability to fulfill our vision of being the clear choice through our people. In all respects, we are going to continue to build a stronger ABM both financially and culturally.
I'll turn the call over to Dean now, but not before thanking him for being our financial steward this quarter and continuing to drive excellence across the enterprise. Dean?
Dean Chin -- Interim Chief Financial Officer
Thanks, Scott. Before I review our financial performance for the quarter, I would like to acknowledge our exceptional finance organization for persisting through another quarter end. Our teams continue to deliver during these complex times and have never been prouder to be a member of this team. In addition, I wanted to express, what a pleasure it has been to meet and connect with many of you on this call over these past few months.
Now, for our quarterly results. Revenue for the quarter were $1.4 billion, a total decrease of approximately 15% compared to last year reflecting a full quarter of COVID-19 decreases in most of our business segments. Partially offsetting this revenue decline was record demand for work orders, which are the higher margin services we have been providing through the pandemic. Work orders were particularly elevated in Business & Industry and Technology & Manufacturing.
GAAP income from continuing operation was $56 million or $0.83 per diluted share compared to $36.5 million or $0.55 last year. Our current results reflect an $8.5 million favorable impact related to prior year self-insurance reserves. We continue to see improvement in claim trends and we are encouraged by the sustained impact from our risk and safety program.
On an adjusted basis, income from continuing operations for the quarter increased to $50.1 million or $0.75 per diluted share compared to $40.2 million or $0.60 last year. On a GAAP and an adjusted basis, we achieved earnings growth versus last year as a result of higher margin revenue mix due to a significant increase in work orders and our ability to achieve efficiencies by aligning labor with decreased legacy services.
Additionally, as Scott referenced, we implemented temporary salary reductions, furloughs and reduced hours for certain corporate staff and management. These actions contributed $18 million in the quarter on a pre-tax basis or approximately $0.18 per share, primarily in Technical Solutions and Corporate, and more than offset certain increases in other expenses. This included bad debt related to client receivables, primarily in the B&I segment and other expenses, including EnhancedClean. As it relates to bad debt, we will continue to exercise prudence as we monitor client receivables and overall credit conditions, particularly within certain sectors throughout this period. Our overall performance during the quarter led to adjusted EBITDA of approximately $109.7 million at a margin rate of 7.9% compared to $93 million or 5.6% last year.
Now, turning to segment results. As a reminder, these results reflect the full quarterly impact of COVID-19 compression on revenues as well as operating profit expansion due to direct and indirect labor management as revenue declined. Additionally, as I previously mentioned, these results also reflect segment-specific increases in bad debt reserves and investments associated with EnhancedClean.
B&I revenues were $756.9 million with operating profit growing more than 58% to $71.6 million at a margin rate of 9.5%. Consistent with last quarter, the decrease in revenue was driven by declines in parking and to a lesser extent, facility services. Partially offsetting this decline was substantially more demand for higher margin work orders as a result of pandemic-related client needs. This enabled us to generally maintain our janitorial work and created a more favorable mix during the quarter. The loss of certain lower margin contracts at the end of last year, as well as new business starts and expansions with key clients further led to our profit growth for the quarter.
T&M reported revenues of $243.2 million, up 7.2% versus last year and even higher than last quarter. Operating profit was $24.5 million at an operating margin of 10.1%. T&M is experiencing strong resilience during the pandemic, as many of our clients on the manufacturing side are providing essential services and remain open. This has driven an increase in work order demands particularly within the tech, logistics and industrial manufacturing end markets. This enabled us to offset the revenue impact of any COVID-related compression and profit impact of higher margin account losses from last year.
Revenue in Education was $188.6 million, down $26.8 million from last year reflecting school closures. However, operating profit of $18.3 million increased considerably versus last year's $12.6 million as a result of labor-related savings associated with reduced revenue as this segment contains a higher degree of fixed fee and performance contracts. This segment in particular can experience varying results dependent on the impact of COVID-19. As schools reopen, revenues will expand, but we will also be staffing to meet that demand.
Conversely, as schools remain in hybrid states, we will still be performing work and have the ability to calibrate labor accordingly. So, for this reason, we must continue to monitor our K through 12 and higher education portfolio given the sensitivity based on COVID resurgence pattern. Over time, we believe EnhancedClean will be an important part of our offering and our Technical Solutions segment can alleviate potential budget constraints for school districts as they deal with the pandemic's economic impact.
Aviation reported revenues of $116.4 million and an operating loss of $8.2 million. With a revenue decline of more than 55% for the quarter, Aviation continues to be our most impacted segment during the pandemic as global travel declines and flight reductions continue to pervade the industry. Accordingly, we have managed variable costs and expenses to match demand. Our results for the quarter included an approximately $4 million severance accrual unique to the UK.
Looking ahead, we believe passenger travel will remain uncertain for the foreseeable future. As we outlined last quarter, we are actively pursuing a deliberate shift away from the airlines and expanding our airport portfolio. Recently, we won a contract with the Port Authority of New York and New Jersey for airport shuttle bus services. As this shift continues, we will continue to manage labor and expenses acutely where possible. Through these strategies, our goal is to improve by the fourth quarter toward a breakeven position.
Finally, on to Technical Solutions. Technical Solutions reported revenues of $119.2 million, down from last year's $165.7 million. This decline reflects our limited site access which impeded our ability to churn our still strong backlog of approximately $170 million, particularly during the early part of the quarter. Operating profit of $13.2 million enabled us to support expenses and expand operating margins to 11.1% compared to 10.8% last year. Over the medium to long term, we believe our Technical Solutions business will see more opportunities in the market for budgeting solutions as municipalities and education facilities seek to overcome COVID-19.
We continue to demonstrate our disciplined approach to manage our working capital through our internal liquidity office which we established last quarter. As a result, we achieved cash flow from operations of $130 million during the quarter and free cash flow of $121 million. This includes $42 million in deferred US payroll taxes as a result of the CARES Act, which will be due in 2021 and 2022.
Due to our strong cash position, we ended the quarter with total debt, including standby letters of credit of $916 million and a bank-adjusted leverage ratio of 2.2 times. This leverage ratio reflects the substantial pay down of our precautionary revolver borrowings in March. Additionally, we ended the quarter with cash and cash equivalents of approximately $230 million, highlighting our ample liquidity to manage and drive our business during even the most uncertain times. As we continue to navigate the current operating environment, we need to maintain our prudent approach to liquidity and capital allocation as we monitor client demand. We will prioritize organic endeavors such as our investment in EnhancedClean and our long spend in dividend policy. We will of course be opportunistic should we have greater visibility on what the future holds.
During the quarter, we paid our 217th consecutive quarterly cash dividend for a total distribution of approximately $12.3 million. And as stated in our earnings release, I'm pleased to share that the Board of Directors approved our 218th consecutive quarterly cash dividend.
Now on to guidance. As we stated in our press release, it remains difficult to provide an accurate range given the variability of outcomes that can occur in this environment. However, I would like to provide some additional content for the fourth quarter based on our current view of the business. Given the month-to-month top line improvement we saw during Q3 and new business wins, we believe we can continue to offset some of the COVID compression. As a result, we could see flat to modest sequential improvement in organic revenue for the fourth quarter.
Additionally, based on what we saw during the quarter, we do not anticipate a material slowdown in our higher margin work and labor management will also be an ongoing area of focus dependent on demand. As Scott described, dependent on the level of work we perform, labor can modulate up and down, leading to varying degrees of labor efficiencies. The fourth quarter will have one less working day which could lead to approximately $6 million in lower labor expense. As a result of our positive quarterly performance and our ample liquidity position, the temporary staff and management cost I described earlier concluded and therefore under the current circumstances will not materially impact the fourth quarter.
In addition to these operationally driven elements, I also want to discuss our assumptions for interest expense, capital expenditures and income taxes for the remainder of the year and potentially next year as well. First, on interest. Based on the aforementioned operating assumptions and our current cash positions, we do not anticipate a significant increase in borrowings for the fourth quarter. As such, we believe interest expense will be approximately $10 million for the quarter.
Next, as I mentioned earlier, we plan to continue managing working capital and liquidity conservatively to ensure we are prepared, if conditions rapidly change in the near term. Therefore, we do not anticipate a material increase in capital expenditures to occur during the fourth quarter. As Scott discussed, we will be reviewing our strategic priorities over the next few months to determine which additional investments we will reengage as we adjust to our new norm.
We are also assuming that any government-related benefits in the UK and the US such as the CARES Act will not recur. This should be considered when ascertaining free cash flow for next year. Obviously, we will continue to drive higher free cash flow conversion through the disciplines we have sharpened over the past few months.
Lastly, related to taxes, I wanted to remind everyone that given the disruption to traditional hiring practices due to the pandemic, we continue to believe WOTC will be less than our original pre-COVID expectation of $7 million and this could continue into next year as well.
In conclusion, while there are clearly a number of variables that we must consider during these unprecedented times, our results underscore how exceptionally our teams have executed. This foundation have strengthened our ability to navigate toward a profitable future.
Operator, we are now ready for questions.
Questions and Answers:
Operator
Thank you. We will now be conducting a question-and-answer session. [Operator Instructions] Our first questions come from the line of Tim Mulrooney of William Blair. Please proceed with your question.
Tim Mulrooney -- William Blair -- Analyst
Scott, Dean, good morning. Congrats on a great quarter.
Scott Salmirs -- President and Chief Executive Officer
Hey, thanks so much.
Dean Chin -- Interim Chief Financial Officer
Thank you, Tim.
Tim Mulrooney -- William Blair -- Analyst
Yeah. So a couple of questions here. First of all, your consolidated EBITDA margin expanded by 230 basis points in the third quarter. Can you talk a little bit about how much of that was from higher margin EnhancedClean work versus labor efficiencies versus furloughs? And as I'm thinking about these three buckets, can you share with us what that implies from a broader perspective when we're thinking about your longer-term EBITDA target margin range of 5.5% to 6%?
Dean Chin -- Interim Chief Financial Officer
Thanks, Tim. As you would expect, our 230 basis point margin expansion had puts and takes. First, I would like to describe the positive items that drove on a gross basis 320 basis points. During the quarter, as we described, we had temporary salary furlough and work hour reductions that had an impact of 130 basis points. Also included in the 320 basis point gross were the impact of labor efficiencies as we managed the COVID revenue compression, the significant higher demand that we had from work order demand, and there were also certain fixed overhead costs that we were unable to leverage during the quarter, as you would expect. Offsetting this gross 320 basis points was a 100 basis points related to bad debt as we continue to monitor our creditworthiness for certain clients and also our investment in EnhancedClean.
Scott Salmirs -- President and Chief Executive Officer
Yeah. And what I would add, Tim, too, is like when you kind of think of even the medium term now and what this means for us, we've talked in the past about kind of the right zone for us. So, we would say, like the golden zone was 5.5% to 6% EBITDA margin. And I think what this does -- what COVID is doing is accelerating that for us, and we are really enthusiastic about where we're heading. And there is -- there are certain disciplines that have happened within our organization through COVID in terms of SOPs, standard operating practices.
We've talked over the last few years with 2020 vision about how difficult it is to ingrain like really foundational changes in terms of getting 300 branch offices to adopt standard operating practices. Well, we've done it through COVID and we talked a little bit about this last quarter about our pods or our task force that were set up to manage collections, payables, labor, and that rigor has really resonated with our employees and they are really seeing the benefit of it. So we're going to continue with that muscle strength and that's really going to enure our benefit down the road.
And then with EnhancedClean, there is going to be embedded EnhancedClean going forward. I mean, I don't think anybody can imagine going back to an office talking to the landlord of the office building or to your head of facilities and them saying, we're back to normal, there is no more virus protection, right. So we think -- I think that's going to be completely embedded going forward. And then even as we restaff the buildings, we think we're going to find efficiencies as workplace expands. So we are truly optimistic about our ability to kind of maintain the margins in that 5.5% to 6% range. And then the big question will be, do we break out past that 6%. And from our perspective, it's just too early right now to determine that.
Tim Mulrooney -- William Blair -- Analyst
Okay. Good color. Thank you. Sticking on this subject of EnhancedClean, in your press release, you kind of highlighted, hey, we had a lot of higher margin work in the quarter. So my question is -- and now I'm kind of thinking about your B&I and your T&M segments, how much of that higher margin work was emergency work and how much do you think is kind of here to stay? In other words, how much of it do you think was one-time tag work versus the longer tail EnhancedClean type work?
Scott Salmirs -- President and Chief Executive Officer
Yeah, you may not like this answer, but I have to tell you, it's just too early to tell, right. I think generally speaking, March was the month which was part of Q2 where there was a lot of reactive work, right. I think -- I think for this quarter, it was more programmatic in the hope that it would create safety and people wanting to get back. I think the real test for us, Tim, is how much of this will be embedded into the future. And for us to hit the $100 million sales mark in EnhancedClean -- remember, EnhancedClean is different than work orders. EnhancedClean means, I want to put a program in place, in my property for six to nine months, right, that's kind of been what it's been averaging. And so we think it's the tip of the iceberg. Aspirationally, do I want to see that double next year? I do.
So I think the big thing is that virus protection is here to stay, and whether you're an educational facility, whether you are an airport, or you're an office building, you can't move into the future without a program that's going to make people feel safe. And so we're optimistic, I think it's a little early. I believe, by next quarter, we'll have a probably a better window into how much of this we've gotten embedded into kind of that six to nine month range of EnhancedClean.
Tim Mulrooney -- William Blair -- Analyst
Okay, great. No, that was great answer. I think I understand how it's laid out now. More of it -- more EnhancedClean type work this quarter than last quarter. So transitioning some of that short emergency tag work into the longer-term higher margin EnhancedClean, that makes sense. If I could sneak in one more -- one more, Scott, because I really wanted to get your answer to this, or at least hear your thoughts on it. So, yeah, I think the biggest issue with investors right now is trying to gauge how many of your B&I customers will remain customers, if work from home becomes a more permanent fixture of our society. I know it's a debate that everyone is having right now. We've recently heard Netflix's CEO say he wants everyone back to work as soon as a vaccine is discovered, but others may be thinking differently. How are you thinking about this dynamic right now and how it might ultimately impact your business? Thank you.
Scott Salmirs -- President and Chief Executive Officer
Yes. So I am not wishy-washy on this, I have very strong opinions. And I used to be a facility manager, right. I ran facilities to Goldman Sachs, for Lehman Brothers and managed facilities to CBRE. So I have little bit of background on it. And I will tell you, I am so optimistic about the future of office. You start looking now online of all this, the employee surveys that are circulating around, people want to get back to work. People recognize that collaboration is important part of their work experience and frankly their lives, right. And then in my CEO networks, from all the different CEOs I'm talking to across the country, we're all starting to talk about the culture that makes each of our company so special and how important it is to develop employees. People -- we want people back, people want to come back.
So, again -- and I'm not sure how you create a strong company with a distributed management team. It just -- it doesn't make sense to me and I think you combine that with the fact that, even if there is a shift, let's just say, there is a 25% shift from work from home, which I don't believe will happen, but even if you do that, when you start dispensing the floor place, we've heard tenants talk about having to take 50% more space to get to where they want to do -- where they ultimately want to get to some distancing. I can tell you, I had a conversation with our internal head of real estate yesterday about whether or not we take some of our sub-tenant space in our office so that we can create distancing.
So I'm super optimistic about office space. And I'll give you some fun facts. In 2010, the average square foot per person in an office building was 225 square feet per person. It's migrated down to 150 square feet person in 2020. I think that's going to start heading up because of social distancing. And just as a frame of reference to that 150 square feet, in 1990, it was 425 square feet per person. So there is room here to grow. So I think this could end up surprising people and there could end up being expansions, minimally net neutral, but for us, it works for us.
And so -- and then you think about who is going to be doing these modifications, who is going to be bringing people back. It's really the Class A tenants, the Class A office buildings that have better air systems, that invest in technology and have more robust cleaning specs, because of their financial wherewithal, that's ABM's client base. So, I am on the side of not neutral. I am so optimistic about the future of office space. And I know I am -- but if I was in the minority, I think it's heading in the direction where my thought process is. So I hope that gives you some clarity, but I really feel like what I'm saying is grounded in fact and also from the fact of a CEO running 140,000 person company and wants to keep being proficient and accelerating.
Tim Mulrooney -- William Blair -- Analyst
Yeah, it makes sense to me, Scott. I'm really glad I asked. Thanks for your perspective. I'll hop back in the queue.
Scott Salmirs -- President and Chief Executive Officer
Thanks, Tim.
Operator
Thank you. Our next questions come from the line of Andrew Wittmann of Baird. Please proceed with your question.
Andrew Wittmann -- Robert W. Baird -- Analyst
Great. Thanks and good morning and thank you for taking my questions. Maybe just a couple here. I guess I wanted to start with some of the new sales, Scott, that you mentioned in your script. You said you are $1 billion basically a quarter ahead of plan. Usually like $1 billion by the year end, but things are doing well, so you gave us a third quarter update here. Can you just talk -- just maybe I guess give some context on this one, how much of that is recurring work, that's contractual recurring work and what -- I'd call your annuity businesses versus work that's in your Technical Solutions, which would be a little bit more project focused? And also I just -- given that we're talking or asking about Technical Solutions, you gave a backlog number for the first time. I was just wondering how that $170 million backlog that you disclosed compares to the backlog a year ago at this time.
Scott Salmirs -- President and Chief Executive Officer
Yeah. So, majority of our sales have been on the annuity business, of the $1 billion by far majority. The ATS business just started picking up toward the back end of the quarter. We've just been seeing great demand. What it really proves, Andy, is that if you make this investment in the sales culture, it really pays off. And we furloughed some of our salespeople and we put them on reduced hours. We did all the things that we thought was the responsible things to be doing in light of the uncertainty at the start of this pandemic. And even with that we sold, because you have to remember that, our sales don't just come from salespeople, they come from our operators in the field talking with clients and expanding footprint.
So I just -- I am -- I could tell you candidly, I'm blown away that we would hit a $1 billion in sales in August. In this year where so much of commerce -- not only has commerce stopped, but the focus hasn't been on that. Some facility managers, some landlords, that's not necessarily been the focus, the focus has been getting people back. So to hit this more, it's just -- I mean, it just speaks volumes to what's going on at ABM and I just couldn't be more proud of that. I think that's one of the standout statistics for this quarter is to -- to put on $1 billion in sales in August in this crazy year, I mean, has to be a standout point.
Dean Chin -- Interim Chief Financial Officer
And, Andy, I would add to what Scott said that, in the past, we've talked about a healthy backlog being in between $150 million to $200 million. And I also wanted to remind you that last year at this time we had two really large deals that really closed that extended that healthy range above. So this year, slightly down. However, with the pandemic and the stoppage in new sales, I really don't think it's a comparability -- equal comparability year-over-year when you compare where we are today versus last year.
Andrew Wittmann -- Robert W. Baird -- Analyst
That's helpful context on those. And I should have asked about your retention rates. Scott, in your annuity businesses, it sounds like the adds are trending very strongly. During COVID, it seems hard to believe that there would be a lot of churn out of the portfolio, but could you just comment on the retention levels that you have seen in the last three months?
Scott Salmirs -- President and Chief Executive Officer
Yeah. We will be really transparent and tell you we're not taking credit for it, because there hasn't been a lot of activity, right. It's all been about kind of stasis of operations, so -- but I will say, what we've done through COVID in terms of our EnhancedClean program and being there for clients, and no small thing, Andy, but our access to supply chain, because you know as well as anybody, we are dealing with smaller competitors in each market and they just did not have the same access to supply chain. I think I mentioned it on the last call, we've put in an order for like $15 million worth of electrostatic sprayers which is the equipment that disperses the disinfection chemicals. We've put in an order for $15 million of electric static sprayers and chemicals and we had access to supply chain. We did not let our customers down.
So when I think of retention, I think the big test will be next year. Did we rise above, did we create such a standout with clients that again or that our bigger clients say like, with ABM, one thing we get is surety, right. We get surety because they have the access, they have the scale and just having an advisory council. I can't tell you how many of our clients will call us now and say, look, I am reading the CDC, I am reading the stuff from World Health Organization, can you help me understand that? And when you have your own advisory panel, which we cannot think of another small competitor that has one of these. I mean, I just feel like -- we've always talked about scale and the scale really matter in our business, it's such a local business. And I think the one thing that this pandemic has proved out is that, in what we do, scale matters, just if nothing else from a resource standpoint between supply chain and having an advisory council.
Andrew Wittmann -- Robert W. Baird -- Analyst
Yes. My last question for now is on the Education segment here. I guess, in the quarter, it's mostly the summer season in your third quarter, it's got half in session, half summer. And so I want to be careful about extrapolating the decline in revenues. I guess, you're down about 12% year-over-year in the quarter into the fall school season, but I'm just curious as to what you're seeing in terms of the reopening performance so far, recognizing that anything can change with new COVID cases. So like that point is not lost on anyone, but a lot of schools are trying to start at least partially in session. What's the current outlook as it stands today about the revenue performance and does the revenue performance that you're seeing today have any implications on what your margins for the segment can be?
Scott Salmirs -- President and Chief Executive Officer
Yeah, that's a good question. And just to give you kind of a frame of reference, so right now within our portfolio -- and 50% of it is K through 12 and 50% is higher ed. But we would say across the board is 80%. So now with the ABM portfolio, 85% of our business is either hybrid or in-person and 15% is online only, right. And we are studying and literally, Andy, day by day we're studying the trends of what's happening with schools of whether or not they are continuing on in this either hybrid or in-person or they're gravitating to online. But we've been relatively stable at this rate in terms of revenues, because the analogy I use is like, at the University of Miami, which has this magnificent campus, lush [Phonetic], we do the landscaping there, we take care of their healthcare buildings there, all of the students facilities, like even if they go 100% online, they're not going to padlock, right, the campus, right. You still have to take care of the facilities and a lot of the online stuff is happening, it's happening where the teachers are going inside the classroom. So you have to disinfect.
So I feel like there is going to be some stability there, at least through the fourth quarter. The real question is going to be when you look at our fiscal '21, what is going to happen for that next semester, the spring semester that starts, I guess, in January, right. Will they have lessons learned from this semester as to how they want to approach it and that could create some variability for us, but that segment has been pretty resilient. I mean, to be 12% down in revenue, given the fact that most of this quarter, the schools were actually closed, right, no one was attending, we feel like -- we feel really good about that segment.
Andrew Wittmann -- Robert W. Baird -- Analyst
Okay, great. Thank you.
Scott Salmirs -- President and Chief Executive Officer
Sure.
Operator
Thank you. Our next questions come from the line of Sean Eastman with KeyBanc Capital Markets. Please proceed with your question.
Sean Eastman -- KeyBanc Capital Markets -- Analyst
Hi, team. Compliments on another great quarter.
Scott Salmirs -- President and Chief Executive Officer
Thank you.
Sean Eastman -- KeyBanc Capital Markets -- Analyst
So I just wanted to start on just any puts and takes you can walk us through as we think about next year, tough comps, easy comps. I think, in particular, it's clear that you guys have done a terrific job around the labor management piece on the downswing. But as we think about a scenario where the operating environments returning to some normalcy, we're getting some recovery in the top line, how to think about your ability to manage labor on the upswing relative to the downswing? And at what point we start to need to fold back some of the back office investment programs you guys have talked about over the past several quarters? Any puts and takes around next year in the context of those items would be helpful.
Scott Salmirs -- President and Chief Executive Officer
Sure. I mean, and there's a lot to unpack there on that question, right.
Sean Eastman -- KeyBanc Capital Markets -- Analyst
Yes.
Scott Salmirs -- President and Chief Executive Officer
Because it's complicated, right. Like, if you think about '21 or comps, they are going to be impossible, right. Because Q1 is -- had no COVID, Q2 had just March, but it was a crazy March, right, because everyone was trying to figure out if they can keep people -- because we didn't really understand the pandemic then and it was all about heightened amount of disinfection and oversized work orders. So Q2 was a little funky. And then Q3 and Q4 will have full COVID. So it's going to be hard to do kind of quarterly comps for next year, but I do think there is an opportunity for us as tenants and as employees start returning and we start building back our staff, I think we will get efficiencies.
You always get efficiencies when you get a chance to rebuild. In our business, we call it resectioning the building, because people have sections, that's what they call like an office building with different floors. So that's a term of ours. So as we resection the buildings and grow, I think we will create some really good labor efficiencies there on the way up.
And then, another really important piece of this, Sean, is the labor situation. For the last two years, we've been dealing with unemployment at 3% and it's been impossible to get labor. And we've told you guys anecdotal stories about how you need to get 10 people through the interview process to find one on -- as a janitor. And with unemployment where it is now, double-digit unemployment, I think what's going to happen is the supply side will be really good for us in terms of trying to find people. And I think unfortunately for kind of the economy, it really hit the hardest on the people that want to come work for ABM, right, kind of the restaurant segment, some of the retail segment. So I think it's going to be opportunistic for us.
And then the last piece of it is, not only supply, but actually the cost of labor and we don't see that being a tailwind. We don't think that labor costs are going to go down because of the unemployment. We think that will kind of stay where we are, but I think it's going to be a really good tailwind for us in terms of the supply side. Dean, I don't know if you have anything you want to share on that, but we're feeling pretty good about that.
Dean Chin -- Interim Chief Financial Officer
Thanks, Scott. As a reminder to everyone, in the fourth quarter, we will have one less working day and as we look into fiscal year '21, on an overall basis, we will also have one more day. But the distribution of that through the quarters will be as follows. In Q1 we will have one less day, in Q2, we'll have one more day, and then in Q3, one less day. And I also wanted to point out that we all kind of read about how states have deficiencies and so we expect an increase in this rerate for next year. Not quite sure exactly what that rate will be yet. And also, we will look to have conversations with our clients as we see an uptick in that rate, but more to come in that on -- in our year-end discussion.
Sean Eastman -- KeyBanc Capital Markets -- Analyst
They are really helpful responses. And maybe just in a similar vein, around free cash flow, I mean, clearly really excellent job done, getting cash in the door in fiscal '20. You did call out the $44 million in CARES Act tax deferral. I guess, half of that becomes a headwind for fiscal '21, but any other sort of puts and takes around free cash flow generation we should think about for fiscal '21 relative to fiscal '20?
Dean Chin -- Interim Chief Financial Officer
Yeah, Sean, I'll start off with a few comments there. As Scott mentioned, we've talked about the pod structures that we established in the pandemic and we will continue to utilize those pod structures to have a disciplined approach, utilizing standard operating procedures collect cash. As you mentioned, we will also continue to get the deferral of US payroll taxes during the quarter and would approximate equally about what we had in this quarter. And then as Scott also mentioned, as we look to align our strategic priorities over the next few months, we wouldn't expect a material change in capital expenditures from Q3.
Scott Salmirs -- President and Chief Executive Officer
Yeah. And before we let this one go, I have more of an emotional response to this, because I am so proud of what this firm has accomplished, to have historic free cash flow in this time where again, commerce is shut down. I'm sure people or companies around the country are struggling with, maybe paying bills. We know what we read, right. And for our teams to be so vigilant about collecting cash and being on it and just the rigor involved, it's just incredible. And I talk to other companies in our space and even outside of our space and the first thing they talk about is liquidity and cash flow and how we have to stay on it. And it's almost embarrassing about how well we're doing.
And so I am just -- I am so proud of what we've done and how seriously our people have taken the concept of collecting cash. And again, Dean mentioned this, this is a muscle strength we are not going to let go. I am so enthusiastic about what we've done and where we're going on cash and another amazing highlight of this quarter.
Sean Eastman -- KeyBanc Capital Markets -- Analyst
All right, I'll leave it there. Thanks very much for the time.
Scott Salmirs -- President and Chief Executive Officer
Sure.
Operator
Thank you. Our next questions come from the line of Marc Riddick with Sidoti & Company. Please proceed with your questions.
Marc Riddick -- Sidoti & Company -- Analyst
Hi, good morning, everyone.
Scott Salmirs -- President and Chief Executive Officer
Good morning.
Marc Riddick -- Sidoti & Company -- Analyst
I wanted to touch on EnhancedClean and get a sense of client receptivity. I was wondering if you could spend a little bit of time on sort of the maybe the types of businesses or particular areas or what have you that were maybe most receptive to the service offerings as well as maybe if you could touch a little bit on -- you mentioned as far as the six to nine month timeframe. How should we think about those future renewals or extensions? How should we think about how that might then proceed for a client who's signed up?
Scott Salmirs -- President and Chief Executive Officer
Yeah. So we've seen receptivity across the board on EnhancedClean because when you really strip it back, it's like are you going to do disinfection work to protect against COVID. So you couldn't imagine, right, anyone or any landlord or any facility manager saying we're not going to do anything. So everyone's doing and it's a question between -- and I may have said this a little earlier, it's a question between do I want to think about it on a temporary basis like, I'm going to give you a work order for a month or do I want to make this more programmatic. And the programmatic stuff is the EnhancedClean six to nine months.
And I think that's probably for now a proper time horizon to -- here's what you should think about it. Work order, very reactive, let's think about this on a temporary basis. EnhancedClean bridge to a vaccine, bridge to getting people back. I want to put a program in place over the next six to nine months to start thinking about getting people back. And then ultimately, when we're talking two or three years from now, we probably won't be talking about EnhancedClean anymore. We're going to have specifications when contracts are bid that are going to incorporate regular disinfection, which as you know is a higher margin service for us.
So we will gravitate from calling it EnhancedClean to say, the specification of the future is going to include doing the things that we used to do in a bathroom and a pantry in general office space. So -- and the reason it's still kind of in its infancy for us, I mean, $100 million is spectacular right out of the box for a quarter, but not every facility manager understands the plan for reoccupancy yet. So as facility managers, as landlords start getting a sense of the patterns for reoccupancy, that's when they start saying, all right, I'm going to transition from doing this on a work order to putting this into EnhancedClean. So that's why we think EnhancedClean is going to accelerate through 2021, because again, you're going to have more of a handle.
We hope that Labor Day was this aspirational trigger to start getting people back to the office. So we may see when we talk to you in the fourth quarter a better handle on EnhancedClean and what's happened, but then people have also talked about January being the next trigger when people are coming back to the office. So it maybe not until fiscal year '21 for us to get a better handle on it. But I think, Mark, on the highest level, I don't think any of us can imagine an airport, an educational facility or office building having ownership saying we are not doing EnhancedClean.
It just doesn't sound rational and it's because you have to give your employees and your tenants a feeling of safety. This is the only way to do it. Especially with ours, because you get a certification, you literally get that sticker on the door that says this facility is EnhancedClean certified. And if you think about schools, parents are going to be like, I don't want to send my kids back unless I'm guaranteeing that you're doing the right disinfection. So we're super optimistic about the future of EnhancedClean.
Marc Riddick -- Sidoti & Company -- Analyst
Okay, great. That's very helpful. And then I was wondering if you could -- I wanted to circle back to Education for a moment and get a sense of the -- I think you had mentioned of this a bit, but I just wanted to get a sense of maybe the differences of activity around the -- you touched on K through 12 versus higher ed, I wanted to get a sense of our -- it seems as though there would be deeper pockets in the higher ed area to maybe be more active on implementing something like this. I was wondering if you could sort of touch on maybe what that -- the funding environment that you're seeing and whether or not that could sort of have an impact on the timing of when these things are brought on board. Thanks.
Scott Salmirs -- President and Chief Executive Officer
Yeah. I think in -- within our industry group, Education, I think it's still a little early, because on the K through 12 side, we've seen so much in terms of budget cuts, right. You read about in the paper, they have school budgets are being cut. So -- but again, let's think straight. If school budgets are cut, can you really cut cleaning? Is that -- that's the one area that you know is going to be sacrosanct, right for the superintendents, right. And then, the same thing with higher ed, how could you cut cleaning? That's like the one area -- you may want to cut food service, you may want to cut -- there are so many other places to look at where you're going to make cuts other than cleaning, right, but you also think about our Technical Solutions space, right.
Our target market is education. So we are seeing so much activity especially on the K through 12 side right now with superintendents calling and us actually reaching out and say, look, I know you are having a budget deficit, we can come in and do a retrofit of your electrical and mechanical systems. Typically we find 30% energy savings, that's enough to save teacher jobs, to save after school programs. So the budget cuts, interestingly enough, are going to be a big tailwind for our Technical Solutions business as they find ways to save money and save, again, teachers jobs and those budget cuts for our industry group education, again, I just will say like I just can't imagine a world where they go back to the PTA or the school board and say, we're making cuts to our cleaning program. It just -- I just can't see it.
Marc Riddick -- Sidoti & Company -- Analyst
I appreciate. Thank you very much.
Scott Salmirs -- President and Chief Executive Officer
Sure.
Operator
Thank you. We have time for one more question. Our next questions come from the line of David Silver with CL King. Please proceed with your question.
David Silver -- CL King -- Analyst
Yeah. Hi, thanks. So just a couple of areas I'm going to ask maybe to go back on, but I did have a question about the marketing effort or the go-to-market strategy for EnhancedClean. And just me personally, I've seen the advertising online and in industrial marketing. Could you -- you touched on maybe the spend at one point in your remarks for this program. Is there any way that you could characterize either qualitatively or quantitatively, is the rollout and the marketing for the EnhancedClean services is significantly different than other marketing programs that you've done either in the vehicles that you used to disseminate the advertising or the groups you're reaching out on?
And then just qualitatively, if you could talk about the split between new customers, customers you didn't do business with that are responding to EnhancedClean versus maybe cross-selling to your existing client base. Thank you.
Scott Salmirs -- President and Chief Executive Officer
Sure. So this is nothing like anything we've ever done at the Company in terms of a true like product rollout, service rollout. We've never been on social media, the way we are now, so we've hired a proper advertising agency and PR firm, like we are doing this the right way. We see so much opportunity in EnhancedClean, and I'll give you a point of reference which is so interesting.
So, tomorrow we're doing a webinar. Part of the advertising you've seen on the social channels is that we're doing a webinar with our expert panel to tell clients how to get back safely, right. And we view the webinar as something that could be a good resource for clients but, more importantly, it's part of advertising, right? It's part of how you position your brand as a knowledgeable brand and we can do a webinar, and we said, you know what? Even if we get 50 people, it will be mission accomplished because it's really about seeing the advertising, less about the webinar itself.
We are going to have -- so we track obviously the registrations, and again at the outset we said if we can get 50 people, 50 important people, that would be great. We're close to 1,000 people that have registered for this webinar already, which has blown us away. So we're tracking metrics, we're tracking hits analytically that go to our website for new customers and for -- even existing customers are tracking it through.
So I think it's too early to give you the split now of new customers versus existing customers. We'll have definitely more insight in Q4 once the campaign has gone through one cycle, one quarter. But it's like nothing we've ever done and what we're really hoping is that taking this approach, really leveraging social channels is going to be game changing for us and really change the demand set. But it's too early to tell, but again to go back to it, we've never done anything like this before. We're so enthusiastic about it.
David Silver -- CL King -- Analyst
Okay, thanks for that. This next question, I apologize, I'll try to keep it together, but I'm kind of pulling some data points from some other areas. The question might be, Scott, where you see the Company, let's say three years from now, so safely after the pandemic induced shifts and uncertainties have passed. But you mentioned, and I have this figure in my head, 140,000 employees, you have mentioned a particular margin target, EBITDA margin target that's above your historical level but below maybe where you're trending shorter term, so this is a question whether you see the Company evolving toward one where you're going to pursue very aggressive top line growth or maybe alternatively one where you aggressively high grade and target your efforts and your labor and other resources and kind of drive the operating margin line and maybe returns on capital. So three years from now, will you have more than 140,000 employees and now 5.5% or 6% margin, or will you have fewer and a higher margin than what the current target was? Thank you.
Scott Salmirs -- President and Chief Executive Officer
Yeah, it really is tough to speculate. I would suspect we'd be growing on all levels, revenue, but I think we'll be growing on margin. We are going to be making investments in our IT infrastructure and digital. I think this is going to give us an opportunity to kind of leapfrog our competition on client-facing technology and analytics. Again, we learned through COVID, right, how our scale matters, and I said it before on supply chain and on our advisory council, and now we're recognizing if we could put technology in place, digital technology to connect with our customers to get stickier, we think that's going to really drive some incredible value, especially as Internet of Things starts taking shape.
So we are going to stick with our operational proficiency, that's going to be super, super important for us. We're going to stick with the rigor and discipline around standard operating practices like cash collections, but we are going to invest in this Company in sales people and in our IT platform.
Dean Chin -- Interim Chief Financial Officer
And David, this is Dean. Just wanted to add onto Scott. We'll continue to be focused on our capital allocation strategy, which has historically been organic investment, looking at or maintaining our long-standing dividend policy, and being opportunistic and thoughtful about M&A and share buybacks. So, as we look into the three-year period, looking at our capital allocation holistically, we'll continue to do that.
Scott Salmirs -- President and Chief Executive Officer
That's great. Great point.
David Silver -- CL King -- Analyst
Okay, thanks very much. I appreciate it.
Scott Salmirs -- President and Chief Executive Officer
Thank you.
Operator
Thank you. That does end the question-and-answer session. I will now hand the call back over to management for any closing remarks.
Scott Salmirs -- President and Chief Executive Officer
I just want to thank everyone for their time, and again hopefully you got the tenor of this call. We are super enthusiastic about where this firm is heading and our value proposition through this pandemic and our brand elevation. I mean, I just can't say enough about it. And the way this team has performed, I mean, it's across all platforms whether it's maintaining the resiliency of our revenue, our profit margins, our free cash flow, our new sales, EnhancedClean initiatives. We just feel like we're firing on all cylinders and the management team has just really risen up. I'm just so impressed with what our team is doing and so excited, so more to come in Q4.
And we're heading into a lot of parts of the country, to the colder weather, so you're going to be more indoors. Don't let your guard down. Stay safe and healthy, practice social distancing, it's super, super important. I appreciate the patience on this call and going through with us, and again have a great fall, everybody. Thank you so much.
Operator
[Operator Closing Remarks]
Duration: 72 minutes
Call participants:
Susie A. Kim -- Vice President of Investor Relations and Treasurer
Scott Salmirs -- President and Chief Executive Officer
Dean Chin -- Interim Chief Financial Officer
Tim Mulrooney -- William Blair -- Analyst
Andrew Wittmann -- Robert W. Baird -- Analyst
Sean Eastman -- KeyBanc Capital Markets -- Analyst
Marc Riddick -- Sidoti & Company -- Analyst
David Silver -- CL King -- Analyst
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | This group will advise us on so many different aspects of ABM's business going forward and provide significant value to our clients as they return to their spaces safely, navigate change and deliver assurances to their employees, customers, and the public by demonstrating trustworthy cleaning and disinfection. ABM Industries Inc (NYSE: ABM) Q3 2020 Earnings Call Sep 9, 2020, 8:30 a.m. ET Contents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks: Operator Greetings and welcome to the ABM Industries Inc. Q3 2020 Earnings Call. | Operator [Operator Closing Remarks] Duration: 72 minutes Call participants: Susie A. Kim -- Vice President of Investor Relations and Treasurer Scott Salmirs -- President and Chief Executive Officer Dean Chin -- Interim Chief Financial Officer Tim Mulrooney -- William Blair -- Analyst Andrew Wittmann -- Robert W. Baird -- Analyst Sean Eastman -- KeyBanc Capital Markets -- Analyst Marc Riddick -- Sidoti & Company -- Analyst David Silver -- CL King -- Analyst More ABM analysis All earnings call transcripts 10 stocks we like better than ABM Industries When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. ABM Industries Inc (NYSE: ABM) Q3 2020 Earnings Call Sep 9, 2020, 8:30 a.m. ET Contents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks: Operator Greetings and welcome to the ABM Industries Inc. Q3 2020 Earnings Call. | Operator [Operator Closing Remarks] Duration: 72 minutes Call participants: Susie A. Kim -- Vice President of Investor Relations and Treasurer Scott Salmirs -- President and Chief Executive Officer Dean Chin -- Interim Chief Financial Officer Tim Mulrooney -- William Blair -- Analyst Andrew Wittmann -- Robert W. Baird -- Analyst Sean Eastman -- KeyBanc Capital Markets -- Analyst Marc Riddick -- Sidoti & Company -- Analyst David Silver -- CL King -- Analyst More ABM analysis All earnings call transcripts 10 stocks we like better than ABM Industries When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. ABM Industries Inc (NYSE: ABM) Q3 2020 Earnings Call Sep 9, 2020, 8:30 a.m. ET Contents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks: Operator Greetings and welcome to the ABM Industries Inc. Q3 2020 Earnings Call. | Operator [Operator Closing Remarks] Duration: 72 minutes Call participants: Susie A. Kim -- Vice President of Investor Relations and Treasurer Scott Salmirs -- President and Chief Executive Officer Dean Chin -- Interim Chief Financial Officer Tim Mulrooney -- William Blair -- Analyst Andrew Wittmann -- Robert W. Baird -- Analyst Sean Eastman -- KeyBanc Capital Markets -- Analyst Marc Riddick -- Sidoti & Company -- Analyst David Silver -- CL King -- Analyst More ABM analysis All earnings call transcripts 10 stocks we like better than ABM Industries When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. ABM Industries Inc (NYSE: ABM) Q3 2020 Earnings Call Sep 9, 2020, 8:30 a.m. ET Contents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks: Operator Greetings and welcome to the ABM Industries Inc. Q3 2020 Earnings Call. |
29349.0 | 2020-09-08 00:00:00 UTC | ABM Industries Q3 Profit Rises | ABM | https://www.nasdaq.com/articles/abm-industries-q3-profit-rises-2020-09-08 | nan | nan | (RTTNews) - ABM Industries Inc. (ABM) Tuesday reported third-quarter net income of $56.0 million or $0.83 per share, up from $36.8 million or $0.55 per share last year.
Adjusted income from continuing operations rose to $0.75 per share from $0.60 per share last year.
Third-quarter revenues dropped 15.4% to $1.394 billion from $1.648 billion last year.
Analysts polled by Thomson Reuters expected earnings of $0.42 per share on revenues of $1.47 billion.
Moving ahead, the company did not provide an outlook due to the "extraordinary and evolving nature of the COVID-19 pandemic."
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - ABM Industries Inc. (ABM) Tuesday reported third-quarter net income of $56.0 million or $0.83 per share, up from $36.8 million or $0.55 per share last year. Analysts polled by Thomson Reuters expected earnings of $0.42 per share on revenues of $1.47 billion. Moving ahead, the company did not provide an outlook due to the "extraordinary and evolving nature of the COVID-19 pandemic." | (RTTNews) - ABM Industries Inc. (ABM) Tuesday reported third-quarter net income of $56.0 million or $0.83 per share, up from $36.8 million or $0.55 per share last year. Third-quarter revenues dropped 15.4% to $1.394 billion from $1.648 billion last year. Analysts polled by Thomson Reuters expected earnings of $0.42 per share on revenues of $1.47 billion. | (RTTNews) - ABM Industries Inc. (ABM) Tuesday reported third-quarter net income of $56.0 million or $0.83 per share, up from $36.8 million or $0.55 per share last year. Moving ahead, the company did not provide an outlook due to the "extraordinary and evolving nature of the COVID-19 pandemic." The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - ABM Industries Inc. (ABM) Tuesday reported third-quarter net income of $56.0 million or $0.83 per share, up from $36.8 million or $0.55 per share last year. Adjusted income from continuing operations rose to $0.75 per share from $0.60 per share last year. Third-quarter revenues dropped 15.4% to $1.394 billion from $1.648 billion last year. |
29350.0 | 2020-09-03 00:00:00 UTC | 5 Dividend Aristocrats Where Analysts See Capital Gains | ABM | https://www.nasdaq.com/articles/5-dividend-aristocrats-where-analysts-see-capital-gains-2020-09-03 | nan | nan | To become a "Dividend Aristocrat," a dividend paying company must accomplish an incredible feat: consistently increase shareholder dividends every year for at least 20 consecutive years. Companies with this kind of track record tend to attract a lot of investor attention — and furthermore, "tracking" funds that follow the Dividend Aristocrats Index must own them. With all of this demand for shares, dividend growth stocks can sometimes become "fully priced," where there isn't much upside to analyst targets.
But we here at ETF Channel have looked through the underlying holdings of the SPDR S&P Dividend ETF (which tracks the S&P High Yield Dividend Aristocrats Index), and found these five dividend growth stocks that actually still have fairly substantial upside to the average analyst target price 12 months out. Which means, if the analysts are correct, these are five dividend growth stocks that could produce capital gains in addition to their growing dividend payments.
In the first table below, we present the five stocks. The recent share price, average analyst 12-month target price, and percentage upside to reach the analyst target are presented.
STOCK RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET
Chevron Corporation (Symbol: CVX) $83.19 $102.64 23.38%
ABM Industries, Inc. (Symbol: ABM) $38.67 $45.00 16.37%
Chubb Ltd (Symbol: CB) $125.83 $145.92 15.97%
General Dynamics Corp (Symbol: GD) $153.92 $177.00 14.99%
Automatic Data Processing Inc. (Symbol: ADP) $142.48 $152.92 7.32%
The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. To ballpark that total return potential, we have added the current yield to the analyst target price upside, in order to arrive at the 12-month total return potential:
STOCK DIVIDEND YIELD % UPSIDE TO ANALYST TARGET IMPLIED TOTAL RETURN POTENTIAL
Chevron Corporation (Symbol: CVX) 6.20% 23.38% 29.58%
ABM Industries, Inc. (Symbol: ABM) 1.91% 16.37% 18.28%
Chubb Ltd (Symbol: CB) 2.48% 15.97% 18.45%
General Dynamics Corp (Symbol: GD) 2.86% 14.99% 17.85%
Automatic Data Processing Inc. (Symbol: ADP) 2.55% 7.32% 9.87%
Another consideration with dividend growth stocks is just how much the dividend is growing. We looked up the trailing twelve months worth of dividends shareholders of each of the above five companies have collected, and then also looked up the same number for the prior trailing twelve months. This gives us a rough yardstick to see how much the dividend has grown, from one trailing twelve month period to another.
STOCK PRIOR TTM DIVIDEND TTM DIVIDEND % GROWTH
Chevron Corporation (Symbol: CVX) $4.69 $5.06 7.89%
ABM Industries, Inc. (Symbol: ABM) $0.715 $0.735 2.80%
Chubb Ltd (Symbol: CB) $2.94 $3.03 3.06%
General Dynamics Corp (Symbol: GD) $3.9 $4.24 8.72%
Automatic Data Processing Inc. (Symbol: ADP) $3.06 $3.52 15.03%
These five stocks are part of our full Dividend Aristocrats List. The average analyst target price data upon which this article was based, is courtesy of data provided by Zacks Investment Research via Quandl.com.
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Dividend Growth Stocks: 25 Aristocrats »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Chevron Corporation (Symbol: CVX) $83.19 $102.64 23.38% ABM Industries, Inc. (Symbol: ABM) $38.67 $45.00 16.37% Chubb Ltd (Symbol: CB) $125.83 $145.92 15.97% General Dynamics Corp (Symbol: GD) $153.92 $177.00 14.99% Automatic Data Processing Inc. (Symbol: ADP) $142.48 $152.92 7.32% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Chevron Corporation (Symbol: CVX) 6.20% 23.38% 29.58% ABM Industries, Inc. (Symbol: ABM) 1.91% 16.37% 18.28% Chubb Ltd (Symbol: CB) 2.48% 15.97% 18.45% General Dynamics Corp (Symbol: GD) 2.86% 14.99% 17.85% Automatic Data Processing Inc. (Symbol: ADP) 2.55% 7.32% 9.87% Another consideration with dividend growth stocks is just how much the dividend is growing. Chevron Corporation (Symbol: CVX) $4.69 $5.06 7.89% ABM Industries, Inc. (Symbol: ABM) $0.715 $0.735 2.80% Chubb Ltd (Symbol: CB) $2.94 $3.03 3.06% General Dynamics Corp (Symbol: GD) $3.9 $4.24 8.72% Automatic Data Processing Inc. (Symbol: ADP) $3.06 $3.52 15.03% These five stocks are part of our full Dividend Aristocrats List. | Chevron Corporation (Symbol: CVX) $83.19 $102.64 23.38% ABM Industries, Inc. (Symbol: ABM) $38.67 $45.00 16.37% Chubb Ltd (Symbol: CB) $125.83 $145.92 15.97% General Dynamics Corp (Symbol: GD) $153.92 $177.00 14.99% Automatic Data Processing Inc. (Symbol: ADP) $142.48 $152.92 7.32% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Chevron Corporation (Symbol: CVX) 6.20% 23.38% 29.58% ABM Industries, Inc. (Symbol: ABM) 1.91% 16.37% 18.28% Chubb Ltd (Symbol: CB) 2.48% 15.97% 18.45% General Dynamics Corp (Symbol: GD) 2.86% 14.99% 17.85% Automatic Data Processing Inc. (Symbol: ADP) 2.55% 7.32% 9.87% Another consideration with dividend growth stocks is just how much the dividend is growing. Chevron Corporation (Symbol: CVX) $4.69 $5.06 7.89% ABM Industries, Inc. (Symbol: ABM) $0.715 $0.735 2.80% Chubb Ltd (Symbol: CB) $2.94 $3.03 3.06% General Dynamics Corp (Symbol: GD) $3.9 $4.24 8.72% Automatic Data Processing Inc. (Symbol: ADP) $3.06 $3.52 15.03% These five stocks are part of our full Dividend Aristocrats List. | Chevron Corporation (Symbol: CVX) $83.19 $102.64 23.38% ABM Industries, Inc. (Symbol: ABM) $38.67 $45.00 16.37% Chubb Ltd (Symbol: CB) $125.83 $145.92 15.97% General Dynamics Corp (Symbol: GD) $153.92 $177.00 14.99% Automatic Data Processing Inc. (Symbol: ADP) $142.48 $152.92 7.32% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Chevron Corporation (Symbol: CVX) 6.20% 23.38% 29.58% ABM Industries, Inc. (Symbol: ABM) 1.91% 16.37% 18.28% Chubb Ltd (Symbol: CB) 2.48% 15.97% 18.45% General Dynamics Corp (Symbol: GD) 2.86% 14.99% 17.85% Automatic Data Processing Inc. (Symbol: ADP) 2.55% 7.32% 9.87% Another consideration with dividend growth stocks is just how much the dividend is growing. Chevron Corporation (Symbol: CVX) $4.69 $5.06 7.89% ABM Industries, Inc. (Symbol: ABM) $0.715 $0.735 2.80% Chubb Ltd (Symbol: CB) $2.94 $3.03 3.06% General Dynamics Corp (Symbol: GD) $3.9 $4.24 8.72% Automatic Data Processing Inc. (Symbol: ADP) $3.06 $3.52 15.03% These five stocks are part of our full Dividend Aristocrats List. | Chevron Corporation (Symbol: CVX) $83.19 $102.64 23.38% ABM Industries, Inc. (Symbol: ABM) $38.67 $45.00 16.37% Chubb Ltd (Symbol: CB) $125.83 $145.92 15.97% General Dynamics Corp (Symbol: GD) $153.92 $177.00 14.99% Automatic Data Processing Inc. (Symbol: ADP) $142.48 $152.92 7.32% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Chevron Corporation (Symbol: CVX) 6.20% 23.38% 29.58% ABM Industries, Inc. (Symbol: ABM) 1.91% 16.37% 18.28% Chubb Ltd (Symbol: CB) 2.48% 15.97% 18.45% General Dynamics Corp (Symbol: GD) 2.86% 14.99% 17.85% Automatic Data Processing Inc. (Symbol: ADP) 2.55% 7.32% 9.87% Another consideration with dividend growth stocks is just how much the dividend is growing. Chevron Corporation (Symbol: CVX) $4.69 $5.06 7.89% ABM Industries, Inc. (Symbol: ABM) $0.715 $0.735 2.80% Chubb Ltd (Symbol: CB) $2.94 $3.03 3.06% General Dynamics Corp (Symbol: GD) $3.9 $4.24 8.72% Automatic Data Processing Inc. (Symbol: ADP) $3.06 $3.52 15.03% These five stocks are part of our full Dividend Aristocrats List. |
29351.0 | 2020-08-03 00:00:00 UTC | 5 Dividend Aristocrats Where Analysts See Capital Gains | ABM | https://www.nasdaq.com/articles/5-dividend-aristocrats-where-analysts-see-capital-gains-2020-08-03 | nan | nan | To become a "Dividend Aristocrat," a dividend paying company must accomplish an incredible feat: consistently increase shareholder dividends every year for at least 20 consecutive years. Companies with this kind of track record tend to attract a lot of investor attention — and furthermore, "tracking" funds that follow the Dividend Aristocrats Index must own them. With all of this demand for shares, dividend growth stocks can sometimes become "fully priced," where there isn't much upside to analyst targets.
But we here at ETF Channel have looked through the underlying holdings of the SPDR S&P Dividend ETF (which tracks the S&P High Yield Dividend Aristocrats Index), and found these five dividend growth stocks that actually still have fairly substantial upside to the average analyst target price 12 months out. Which means, if the analysts are correct, these are five dividend growth stocks that could produce capital gains in addition to their growing dividend payments.
In the first table below, we present the five stocks. The recent share price, average analyst 12-month target price, and percentage upside to reach the analyst target are presented.
STOCK RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET
Chevron Corporation (Symbol: CVX) $83.94 $106.27 26.60%
ABM Industries, Inc. (Symbol: ABM) $35.90 $45.00 25.35%
General Dynamics Corp (Symbol: GD) $146.74 $175.75 19.77%
Automatic Data Processing Inc. (Symbol: ADP) $132.96 $153.58 15.51%
Chubb Ltd (Symbol: CB) $127.24 $145.92 14.68%
The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. To ballpark that total return potential, we have added the current yield to the analyst target price upside, in order to arrive at the 12-month total return potential:
STOCK DIVIDEND YIELD % UPSIDE TO ANALYST TARGET IMPLIED TOTAL RETURN POTENTIAL
Chevron Corporation (Symbol: CVX) 6.15% 26.60% 32.75%
ABM Industries, Inc. (Symbol: ABM) 2.06% 25.35% 27.41%
General Dynamics Corp (Symbol: GD) 3.00% 19.77% 22.77%
Automatic Data Processing Inc. (Symbol: ADP) 2.74% 15.51% 18.25%
Chubb Ltd (Symbol: CB) 2.45% 14.68% 17.13%
Another consideration with dividend growth stocks is just how much the dividend is growing. We looked up the trailing twelve months worth of dividends shareholders of each of the above five companies have collected, and then also looked up the same number for the prior trailing twelve months. This gives us a rough yardstick to see how much the dividend has grown, from one trailing twelve month period to another.
STOCK PRIOR TTM DIVIDEND TTM DIVIDEND % GROWTH
Chevron Corporation (Symbol: CVX) $4.62 $4.96 7.36%
ABM Industries, Inc. (Symbol: ABM) $0.715 $0.735 2.80%
General Dynamics Corp (Symbol: GD) $3.9 $4.24 8.72%
Automatic Data Processing Inc. (Symbol: ADP) $3.06 $3.52 15.03%
Chubb Ltd (Symbol: CB) $2.94 $3.03 3.06%
These five stocks are part of our full Dividend Aristocrats List. The average analyst target price data upon which this article was based, is courtesy of data provided by Zacks Investment Research via Quandl.com.
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Dividend Growth Stocks: 25 Aristocrats »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Chevron Corporation (Symbol: CVX) $83.94 $106.27 26.60% ABM Industries, Inc. (Symbol: ABM) $35.90 $45.00 25.35% General Dynamics Corp (Symbol: GD) $146.74 $175.75 19.77% Automatic Data Processing Inc. (Symbol: ADP) $132.96 $153.58 15.51% Chubb Ltd (Symbol: CB) $127.24 $145.92 14.68% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Chevron Corporation (Symbol: CVX) 6.15% 26.60% 32.75% ABM Industries, Inc. (Symbol: ABM) 2.06% 25.35% 27.41% General Dynamics Corp (Symbol: GD) 3.00% 19.77% 22.77% Automatic Data Processing Inc. (Symbol: ADP) 2.74% 15.51% 18.25% Chubb Ltd (Symbol: CB) 2.45% 14.68% 17.13% Another consideration with dividend growth stocks is just how much the dividend is growing. Chevron Corporation (Symbol: CVX) $4.62 $4.96 7.36% ABM Industries, Inc. (Symbol: ABM) $0.715 $0.735 2.80% General Dynamics Corp (Symbol: GD) $3.9 $4.24 8.72% Automatic Data Processing Inc. (Symbol: ADP) $3.06 $3.52 15.03% Chubb Ltd (Symbol: CB) $2.94 $3.03 3.06% These five stocks are part of our full Dividend Aristocrats List. | Chevron Corporation (Symbol: CVX) $83.94 $106.27 26.60% ABM Industries, Inc. (Symbol: ABM) $35.90 $45.00 25.35% General Dynamics Corp (Symbol: GD) $146.74 $175.75 19.77% Automatic Data Processing Inc. (Symbol: ADP) $132.96 $153.58 15.51% Chubb Ltd (Symbol: CB) $127.24 $145.92 14.68% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Chevron Corporation (Symbol: CVX) 6.15% 26.60% 32.75% ABM Industries, Inc. (Symbol: ABM) 2.06% 25.35% 27.41% General Dynamics Corp (Symbol: GD) 3.00% 19.77% 22.77% Automatic Data Processing Inc. (Symbol: ADP) 2.74% 15.51% 18.25% Chubb Ltd (Symbol: CB) 2.45% 14.68% 17.13% Another consideration with dividend growth stocks is just how much the dividend is growing. Chevron Corporation (Symbol: CVX) $4.62 $4.96 7.36% ABM Industries, Inc. (Symbol: ABM) $0.715 $0.735 2.80% General Dynamics Corp (Symbol: GD) $3.9 $4.24 8.72% Automatic Data Processing Inc. (Symbol: ADP) $3.06 $3.52 15.03% Chubb Ltd (Symbol: CB) $2.94 $3.03 3.06% These five stocks are part of our full Dividend Aristocrats List. | Chevron Corporation (Symbol: CVX) $83.94 $106.27 26.60% ABM Industries, Inc. (Symbol: ABM) $35.90 $45.00 25.35% General Dynamics Corp (Symbol: GD) $146.74 $175.75 19.77% Automatic Data Processing Inc. (Symbol: ADP) $132.96 $153.58 15.51% Chubb Ltd (Symbol: CB) $127.24 $145.92 14.68% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Chevron Corporation (Symbol: CVX) 6.15% 26.60% 32.75% ABM Industries, Inc. (Symbol: ABM) 2.06% 25.35% 27.41% General Dynamics Corp (Symbol: GD) 3.00% 19.77% 22.77% Automatic Data Processing Inc. (Symbol: ADP) 2.74% 15.51% 18.25% Chubb Ltd (Symbol: CB) 2.45% 14.68% 17.13% Another consideration with dividend growth stocks is just how much the dividend is growing. Chevron Corporation (Symbol: CVX) $4.62 $4.96 7.36% ABM Industries, Inc. (Symbol: ABM) $0.715 $0.735 2.80% General Dynamics Corp (Symbol: GD) $3.9 $4.24 8.72% Automatic Data Processing Inc. (Symbol: ADP) $3.06 $3.52 15.03% Chubb Ltd (Symbol: CB) $2.94 $3.03 3.06% These five stocks are part of our full Dividend Aristocrats List. | Chevron Corporation (Symbol: CVX) $83.94 $106.27 26.60% ABM Industries, Inc. (Symbol: ABM) $35.90 $45.00 25.35% General Dynamics Corp (Symbol: GD) $146.74 $175.75 19.77% Automatic Data Processing Inc. (Symbol: ADP) $132.96 $153.58 15.51% Chubb Ltd (Symbol: CB) $127.24 $145.92 14.68% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Chevron Corporation (Symbol: CVX) 6.15% 26.60% 32.75% ABM Industries, Inc. (Symbol: ABM) 2.06% 25.35% 27.41% General Dynamics Corp (Symbol: GD) 3.00% 19.77% 22.77% Automatic Data Processing Inc. (Symbol: ADP) 2.74% 15.51% 18.25% Chubb Ltd (Symbol: CB) 2.45% 14.68% 17.13% Another consideration with dividend growth stocks is just how much the dividend is growing. Chevron Corporation (Symbol: CVX) $4.62 $4.96 7.36% ABM Industries, Inc. (Symbol: ABM) $0.715 $0.735 2.80% General Dynamics Corp (Symbol: GD) $3.9 $4.24 8.72% Automatic Data Processing Inc. (Symbol: ADP) $3.06 $3.52 15.03% Chubb Ltd (Symbol: CB) $2.94 $3.03 3.06% These five stocks are part of our full Dividend Aristocrats List. |
29352.0 | 2020-07-07 00:00:00 UTC | ABM Crosses Below Key Moving Average Level | ABM | https://www.nasdaq.com/articles/abm-crosses-below-key-moving-average-level-2020-07-07 | nan | nan | In trading on Tuesday, shares of ABM Industries, Inc. (Symbol: ABM) crossed below their 200 day moving average of $34.83, changing hands as low as $34.68 per share. ABM Industries, Inc. shares are currently trading down about 2.2% on the day. The chart below shows the one year performance of ABM shares, versus its 200 day moving average:
Looking at the chart above, ABM's low point in its 52 week range is $19.7906 per share, with $42.67 as the 52 week high point — that compares with a last trade of $34.62.
Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In trading on Tuesday, shares of ABM Industries, Inc. (Symbol: ABM) crossed below their 200 day moving average of $34.83, changing hands as low as $34.68 per share. The chart below shows the one year performance of ABM shares, versus its 200 day moving average: Looking at the chart above, ABM's low point in its 52 week range is $19.7906 per share, with $42.67 as the 52 week high point — that compares with a last trade of $34.62. ABM Industries, Inc. shares are currently trading down about 2.2% on the day. | In trading on Tuesday, shares of ABM Industries, Inc. (Symbol: ABM) crossed below their 200 day moving average of $34.83, changing hands as low as $34.68 per share. The chart below shows the one year performance of ABM shares, versus its 200 day moving average: Looking at the chart above, ABM's low point in its 52 week range is $19.7906 per share, with $42.67 as the 52 week high point — that compares with a last trade of $34.62. ABM Industries, Inc. shares are currently trading down about 2.2% on the day. | In trading on Tuesday, shares of ABM Industries, Inc. (Symbol: ABM) crossed below their 200 day moving average of $34.83, changing hands as low as $34.68 per share. The chart below shows the one year performance of ABM shares, versus its 200 day moving average: Looking at the chart above, ABM's low point in its 52 week range is $19.7906 per share, with $42.67 as the 52 week high point — that compares with a last trade of $34.62. ABM Industries, Inc. shares are currently trading down about 2.2% on the day. | In trading on Tuesday, shares of ABM Industries, Inc. (Symbol: ABM) crossed below their 200 day moving average of $34.83, changing hands as low as $34.68 per share. ABM Industries, Inc. shares are currently trading down about 2.2% on the day. The chart below shows the one year performance of ABM shares, versus its 200 day moving average: Looking at the chart above, ABM's low point in its 52 week range is $19.7906 per share, with $42.67 as the 52 week high point — that compares with a last trade of $34.62. |
29353.0 | 2020-06-29 00:00:00 UTC | 5 Dividend Aristocrats Where Analysts See Capital Gains | ABM | https://www.nasdaq.com/articles/5-dividend-aristocrats-where-analysts-see-capital-gains-2020-06-29 | nan | nan | To become a "Dividend Aristocrat," a dividend paying company must accomplish an incredible feat: consistently increase shareholder dividends every year for at least 20 consecutive years. Companies with this kind of track record tend to attract a lot of investor attention — and furthermore, "tracking" funds that follow the Dividend Aristocrats Index must own them. With all of this demand for shares, dividend growth stocks can sometimes become "fully priced," where there isn't much upside to analyst targets.
But we here at ETF Channel have looked through the underlying holdings of the SPDR S&P Dividend ETF (which tracks the S&P High Yield Dividend Aristocrats Index), and found these five dividend growth stocks that actually still have fairly substantial upside to the average analyst target price 12 months out. Which means, if the analysts are correct, these are five dividend growth stocks that could produce capital gains in addition to their growing dividend payments.
In the first table below, we present the five stocks. The recent share price, average analyst 12-month target price, and percentage upside to reach the analyst target are presented.
STOCK RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET
ABM Industries, Inc. (Symbol: ABM) $34.97 $45.00 28.68%
Bank OZK (Symbol: OZK) $22.07 $24.70 11.92%
J.M. Smucker Co. (Symbol: SJM) $103.01 $113.22 9.91%
PepsiCo Inc (Symbol: PEP) $128.93 $140.50 8.97%
Cullen/Frost Bankers, Inc. (Symbol: CFR) $70.38 $76.20 8.27%
The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. To ballpark that total return potential, we have added the current yield to the analyst target price upside, in order to arrive at the 12-month total return potential:
STOCK DIVIDEND YIELD % UPSIDE TO ANALYST TARGET IMPLIED TOTAL RETURN POTENTIAL
ABM Industries, Inc. (Symbol: ABM) 2.12% 28.68% 30.8%
Bank OZK (Symbol: OZK) 4.89% 11.92% 16.81%
J.M. Smucker Co. (Symbol: SJM) 3.42% 9.91% 13.33%
PepsiCo Inc (Symbol: PEP) 3.17% 8.97% 12.14%
Cullen/Frost Bankers, Inc. (Symbol: CFR) 4.04% 8.27% 12.31%
Another consideration with dividend growth stocks is just how much the dividend is growing. We looked up the trailing twelve months worth of dividends shareholders of each of the above five companies have collected, and then also looked up the same number for the prior trailing twelve months. This gives us a rough yardstick to see how much the dividend has grown, from one trailing twelve month period to another.
STOCK PRIOR TTM DIVIDEND TTM DIVIDEND % GROWTH
ABM Industries, Inc. (Symbol: ABM) $0.71 $0.73 2.82%
Bank OZK (Symbol: OZK) $0.86 $1.02 18.60%
J.M. Smucker Co. (Symbol: SJM) $3.4 $3.52 3.53%
PepsiCo Inc (Symbol: PEP) $3.739 $3.888 3.99%
Cullen/Frost Bankers, Inc. (Symbol: CFR) $2.72 $2.84 4.41%
These five stocks are part of our full Dividend Aristocrats List. The average analyst target price data upon which this article was based, is courtesy of data provided by Zacks Investment Research via Quandl.com.
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Dividend Growth Stocks: 25 Aristocrats »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | ABM Industries, Inc. (Symbol: ABM) $34.97 $45.00 28.68% Bank OZK (Symbol: OZK) $22.07 $24.70 11.92% J.M. ABM Industries, Inc. (Symbol: ABM) 2.12% 28.68% 30.8% Bank OZK (Symbol: OZK) 4.89% 11.92% 16.81% J.M. ABM Industries, Inc. (Symbol: ABM) $0.71 $0.73 2.82% Bank OZK (Symbol: OZK) $0.86 $1.02 18.60% J.M. | ABM Industries, Inc. (Symbol: ABM) $34.97 $45.00 28.68% Bank OZK (Symbol: OZK) $22.07 $24.70 11.92% J.M. ABM Industries, Inc. (Symbol: ABM) 2.12% 28.68% 30.8% Bank OZK (Symbol: OZK) 4.89% 11.92% 16.81% J.M. ABM Industries, Inc. (Symbol: ABM) $0.71 $0.73 2.82% Bank OZK (Symbol: OZK) $0.86 $1.02 18.60% J.M. | ABM Industries, Inc. (Symbol: ABM) $34.97 $45.00 28.68% Bank OZK (Symbol: OZK) $22.07 $24.70 11.92% J.M. ABM Industries, Inc. (Symbol: ABM) 2.12% 28.68% 30.8% Bank OZK (Symbol: OZK) 4.89% 11.92% 16.81% J.M. ABM Industries, Inc. (Symbol: ABM) $0.71 $0.73 2.82% Bank OZK (Symbol: OZK) $0.86 $1.02 18.60% J.M. | ABM Industries, Inc. (Symbol: ABM) $34.97 $45.00 28.68% Bank OZK (Symbol: OZK) $22.07 $24.70 11.92% J.M. ABM Industries, Inc. (Symbol: ABM) 2.12% 28.68% 30.8% Bank OZK (Symbol: OZK) 4.89% 11.92% 16.81% J.M. ABM Industries, Inc. (Symbol: ABM) $0.71 $0.73 2.82% Bank OZK (Symbol: OZK) $0.86 $1.02 18.60% J.M. |
29354.0 | 2020-06-29 00:00:00 UTC | iShares S&P Small-Cap 600 Value ETF Experiences Big Outflow | ABM | https://www.nasdaq.com/articles/ishares-sp-small-cap-600-value-etf-experiences-big-outflow-2020-06-29 | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares S&P Small-Cap 600 Value ETF (Symbol: IJS) where we have detected an approximate $136.4 million dollar outflow -- that's a 3.0% decrease week over week (from 39,350,000 to 38,150,000). Among the largest underlying components of IJS, in trading today ABM Industries, Inc. (Symbol: ABM) is up about 4.5%, Integer Holdings Corp (Symbol: ITGR) is up about 2.6%, and Capri Holdings Ltd (Symbol: CPRI) is higher by about 3.8%. For a complete list of holdings, visit the IJS Holdings page » The chart below shows the one year price performance of IJS, versus its 200 day moving average:
Looking at the chart above, IJS's low point in its 52 week range is $85.6268 per share, with $162.865 as the 52 week high point — that compares with a last trade of $118.14. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs experienced notable outflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of IJS, in trading today ABM Industries, Inc. (Symbol: ABM) is up about 4.5%, Integer Holdings Corp (Symbol: ITGR) is up about 2.6%, and Capri Holdings Ltd (Symbol: CPRI) is higher by about 3.8%. For a complete list of holdings, visit the IJS Holdings page » The chart below shows the one year price performance of IJS, versus its 200 day moving average: Looking at the chart above, IJS's low point in its 52 week range is $85.6268 per share, with $162.865 as the 52 week high point — that compares with a last trade of $118.14. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. | Among the largest underlying components of IJS, in trading today ABM Industries, Inc. (Symbol: ABM) is up about 4.5%, Integer Holdings Corp (Symbol: ITGR) is up about 2.6%, and Capri Holdings Ltd (Symbol: CPRI) is higher by about 3.8%. For a complete list of holdings, visit the IJS Holdings page » The chart below shows the one year price performance of IJS, versus its 200 day moving average: Looking at the chart above, IJS's low point in its 52 week range is $85.6268 per share, with $162.865 as the 52 week high point — that compares with a last trade of $118.14. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). | Among the largest underlying components of IJS, in trading today ABM Industries, Inc. (Symbol: ABM) is up about 4.5%, Integer Holdings Corp (Symbol: ITGR) is up about 2.6%, and Capri Holdings Ltd (Symbol: CPRI) is higher by about 3.8%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares S&P Small-Cap 600 Value ETF (Symbol: IJS) where we have detected an approximate $136.4 million dollar outflow -- that's a 3.0% decrease week over week (from 39,350,000 to 38,150,000). For a complete list of holdings, visit the IJS Holdings page » The chart below shows the one year price performance of IJS, versus its 200 day moving average: Looking at the chart above, IJS's low point in its 52 week range is $85.6268 per share, with $162.865 as the 52 week high point — that compares with a last trade of $118.14. | Among the largest underlying components of IJS, in trading today ABM Industries, Inc. (Symbol: ABM) is up about 4.5%, Integer Holdings Corp (Symbol: ITGR) is up about 2.6%, and Capri Holdings Ltd (Symbol: CPRI) is higher by about 3.8%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares S&P Small-Cap 600 Value ETF (Symbol: IJS) where we have detected an approximate $136.4 million dollar outflow -- that's a 3.0% decrease week over week (from 39,350,000 to 38,150,000). For a complete list of holdings, visit the IJS Holdings page » The chart below shows the one year price performance of IJS, versus its 200 day moving average: Looking at the chart above, IJS's low point in its 52 week range is $85.6268 per share, with $162.865 as the 52 week high point — that compares with a last trade of $118.14. |
29355.0 | 2020-06-18 00:00:00 UTC | BUZZ-U.S. STOCKS ON THE MOVE-Tonix, Farmmi Inc, Rexahn Pharmaceuticals | ABM | https://www.nasdaq.com/articles/buzz-u.s.-stocks-on-the-move-tonix-farmmi-inc-rexahn-pharmaceuticals-2020-06-18 | nan | nan | Eikon search string for individual stock moves: STXBZ
The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi
The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh
U.S. stock index futures fell on Thursday as an uptick in COVID-19 infections in parts of the United States threatened to upend bets of a swift economic recovery, with data showing that weekly jobless claims remained elevated. .N
At 8:30 ET, Dow e-minis 1YMc1 were down 0.87% at 25,923. S&P 500 e-minis ESc1 were down 0.78% at 3,093.75, while Nasdaq 100 e-minis NQc1 were down 0.34% at 9,960.5. The top three NYSE percentage gainers premarket .PRPG.NQ: ** Natuzzi Spa , up 27.1% ** BBX Capital Corp , up 23.7% ** Orion Group Holding , up 20.4% The top three NYSE percentage losers premarket .PRPL.NQ: ** Medley Management Inc , down 23.6% ** Gp Strategies Corp , down 15.9% ** U.S. Steel Corp , down 14.2% The top three Nasdaq percentage gainers premarket .PRPG.O: ** Alpine Immune Sciences Inc , up 178.8% ** Hudson Capital Inc , up 156.6% ** AgroFresh Solutions , up 152.6% The top three Nasdaq percentage losers premarket .PRPL.O: ** Technical Communications Corp , down 27.1% ** Brickell Biotech Inc , down 20.5% ** Westell Technologies Inc , down 18.9% ** ABM Industries ABM.N: up 7.9% premarket BUZZ-Gains as Q2 profit beats ** Orion Group Holdings ORN.N: up 20.4% premarket BUZZ-Jumps on $17 mln dredging contracts ** Carnival Corp CCL.N: down 7.7% premarket BUZZ-"heading for the doldrums" - Berenberg ** Rexahn Pharmaceuticals REXN.O: up 33.8% premarket BUZZ-Surges on merger agreement with Ocuphire ** Farmmi Inc FAMI.O: up 140.4% premarket BUZZ-Surges as subsidiary gets repeat order for mushshroom supply ** U.S. Steel X.N: down 14.2% premarket BUZZ-slides on $429 mln equity raise ** Tonix Pharmaceuticals TNXP.O: up 19.6% premarket BUZZ-Jumps on expanding COVID-19 vaccine collaboration
(Compiled by Shivani Kumaresan in Bengaluru)
((Shivani.Kumaresan@thomsonreuters.com ; +1 646 223 8780;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The top three NYSE percentage gainers premarket .PRPG.NQ: ** Natuzzi Spa , up 27.1% ** BBX Capital Corp , up 23.7% ** Orion Group Holding , up 20.4% The top three NYSE percentage losers premarket .PRPL.NQ: ** Medley Management Inc , down 23.6% ** Gp Strategies Corp , down 15.9% ** U.S. Steel Corp , down 14.2% The top three Nasdaq percentage gainers premarket .PRPG.O: ** Alpine Immune Sciences Inc , up 178.8% ** Hudson Capital Inc , up 156.6% ** AgroFresh Solutions , up 152.6% The top three Nasdaq percentage losers premarket .PRPL.O: ** Technical Communications Corp , down 27.1% ** Brickell Biotech Inc , down 20.5% ** Westell Technologies Inc , down 18.9% ** ABM Industries ABM.N: up 7.9% premarket BUZZ-Gains as Q2 profit beats ** Orion Group Holdings ORN.N: up 20.4% premarket BUZZ-Jumps on $17 mln dredging contracts ** Carnival Corp CCL.N: down 7.7% premarket BUZZ-"heading for the doldrums" - Berenberg ** Rexahn Pharmaceuticals REXN.O: up 33.8% premarket BUZZ-Surges on merger agreement with Ocuphire ** Farmmi Inc FAMI.O: up 140.4% premarket BUZZ-Surges as subsidiary gets repeat order for mushshroom supply ** U.S. Steel X.N: down 14.2% premarket BUZZ-slides on $429 mln equity raise ** Tonix Pharmaceuticals TNXP.O: up 19.6% premarket BUZZ-Jumps on expanding COVID-19 vaccine collaboration (Compiled by Shivani Kumaresan in Bengaluru) ((Shivani.Kumaresan@thomsonreuters.com ; +1 646 223 8780;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh U.S. stock index futures fell on Thursday as an uptick in COVID-19 infections in parts of the United States threatened to upend bets of a swift economic recovery, with data showing that weekly jobless claims remained elevated. .N At 8:30 ET, Dow e-minis 1YMc1 were down 0.87% at 25,923. | The top three NYSE percentage gainers premarket .PRPG.NQ: ** Natuzzi Spa , up 27.1% ** BBX Capital Corp , up 23.7% ** Orion Group Holding , up 20.4% The top three NYSE percentage losers premarket .PRPL.NQ: ** Medley Management Inc , down 23.6% ** Gp Strategies Corp , down 15.9% ** U.S. Steel Corp , down 14.2% The top three Nasdaq percentage gainers premarket .PRPG.O: ** Alpine Immune Sciences Inc , up 178.8% ** Hudson Capital Inc , up 156.6% ** AgroFresh Solutions , up 152.6% The top three Nasdaq percentage losers premarket .PRPL.O: ** Technical Communications Corp , down 27.1% ** Brickell Biotech Inc , down 20.5% ** Westell Technologies Inc , down 18.9% ** ABM Industries ABM.N: up 7.9% premarket BUZZ-Gains as Q2 profit beats ** Orion Group Holdings ORN.N: up 20.4% premarket BUZZ-Jumps on $17 mln dredging contracts ** Carnival Corp CCL.N: down 7.7% premarket BUZZ-"heading for the doldrums" - Berenberg ** Rexahn Pharmaceuticals REXN.O: up 33.8% premarket BUZZ-Surges on merger agreement with Ocuphire ** Farmmi Inc FAMI.O: up 140.4% premarket BUZZ-Surges as subsidiary gets repeat order for mushshroom supply ** U.S. Steel X.N: down 14.2% premarket BUZZ-slides on $429 mln equity raise ** Tonix Pharmaceuticals TNXP.O: up 19.6% premarket BUZZ-Jumps on expanding COVID-19 vaccine collaboration (Compiled by Shivani Kumaresan in Bengaluru) ((Shivani.Kumaresan@thomsonreuters.com ; +1 646 223 8780;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh U.S. stock index futures fell on Thursday as an uptick in COVID-19 infections in parts of the United States threatened to upend bets of a swift economic recovery, with data showing that weekly jobless claims remained elevated. S&P 500 e-minis ESc1 were down 0.78% at 3,093.75, while Nasdaq 100 e-minis NQc1 were down 0.34% at 9,960.5. | The top three NYSE percentage gainers premarket .PRPG.NQ: ** Natuzzi Spa , up 27.1% ** BBX Capital Corp , up 23.7% ** Orion Group Holding , up 20.4% The top three NYSE percentage losers premarket .PRPL.NQ: ** Medley Management Inc , down 23.6% ** Gp Strategies Corp , down 15.9% ** U.S. Steel Corp , down 14.2% The top three Nasdaq percentage gainers premarket .PRPG.O: ** Alpine Immune Sciences Inc , up 178.8% ** Hudson Capital Inc , up 156.6% ** AgroFresh Solutions , up 152.6% The top three Nasdaq percentage losers premarket .PRPL.O: ** Technical Communications Corp , down 27.1% ** Brickell Biotech Inc , down 20.5% ** Westell Technologies Inc , down 18.9% ** ABM Industries ABM.N: up 7.9% premarket BUZZ-Gains as Q2 profit beats ** Orion Group Holdings ORN.N: up 20.4% premarket BUZZ-Jumps on $17 mln dredging contracts ** Carnival Corp CCL.N: down 7.7% premarket BUZZ-"heading for the doldrums" - Berenberg ** Rexahn Pharmaceuticals REXN.O: up 33.8% premarket BUZZ-Surges on merger agreement with Ocuphire ** Farmmi Inc FAMI.O: up 140.4% premarket BUZZ-Surges as subsidiary gets repeat order for mushshroom supply ** U.S. Steel X.N: down 14.2% premarket BUZZ-slides on $429 mln equity raise ** Tonix Pharmaceuticals TNXP.O: up 19.6% premarket BUZZ-Jumps on expanding COVID-19 vaccine collaboration (Compiled by Shivani Kumaresan in Bengaluru) ((Shivani.Kumaresan@thomsonreuters.com ; +1 646 223 8780;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh U.S. stock index futures fell on Thursday as an uptick in COVID-19 infections in parts of the United States threatened to upend bets of a swift economic recovery, with data showing that weekly jobless claims remained elevated. S&P 500 e-minis ESc1 were down 0.78% at 3,093.75, while Nasdaq 100 e-minis NQc1 were down 0.34% at 9,960.5. | The top three NYSE percentage gainers premarket .PRPG.NQ: ** Natuzzi Spa , up 27.1% ** BBX Capital Corp , up 23.7% ** Orion Group Holding , up 20.4% The top three NYSE percentage losers premarket .PRPL.NQ: ** Medley Management Inc , down 23.6% ** Gp Strategies Corp , down 15.9% ** U.S. Steel Corp , down 14.2% The top three Nasdaq percentage gainers premarket .PRPG.O: ** Alpine Immune Sciences Inc , up 178.8% ** Hudson Capital Inc , up 156.6% ** AgroFresh Solutions , up 152.6% The top three Nasdaq percentage losers premarket .PRPL.O: ** Technical Communications Corp , down 27.1% ** Brickell Biotech Inc , down 20.5% ** Westell Technologies Inc , down 18.9% ** ABM Industries ABM.N: up 7.9% premarket BUZZ-Gains as Q2 profit beats ** Orion Group Holdings ORN.N: up 20.4% premarket BUZZ-Jumps on $17 mln dredging contracts ** Carnival Corp CCL.N: down 7.7% premarket BUZZ-"heading for the doldrums" - Berenberg ** Rexahn Pharmaceuticals REXN.O: up 33.8% premarket BUZZ-Surges on merger agreement with Ocuphire ** Farmmi Inc FAMI.O: up 140.4% premarket BUZZ-Surges as subsidiary gets repeat order for mushshroom supply ** U.S. Steel X.N: down 14.2% premarket BUZZ-slides on $429 mln equity raise ** Tonix Pharmaceuticals TNXP.O: up 19.6% premarket BUZZ-Jumps on expanding COVID-19 vaccine collaboration (Compiled by Shivani Kumaresan in Bengaluru) ((Shivani.Kumaresan@thomsonreuters.com ; +1 646 223 8780;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh U.S. stock index futures fell on Thursday as an uptick in COVID-19 infections in parts of the United States threatened to upend bets of a swift economic recovery, with data showing that weekly jobless claims remained elevated. .N At 8:30 ET, Dow e-minis 1YMc1 were down 0.87% at 25,923. |
29356.0 | 2020-06-18 00:00:00 UTC | Why ABM Industries Stock Popped 20% on Thursday | ABM | https://www.nasdaq.com/articles/why-abm-industries-stock-popped-20-on-thursday-2020-06-18 | nan | nan | What happened
On a modestly down day for the stock market, shares of janitorial services company ABM Industries (NYSE: ABM) broke from the pack and climbed 20% on Thursday on the back of a much better-than-expected earnings report.
Analysts had predicted that ABM's second-quarter earnings, released after close of trading on Wednesday, would show earnings per share of $0.29 on a pro forma basis, on sales of $1.49 billion. That sales estimate was pretty much on the mark (Q2 sales rounded up closer to $1.5 billion), but ABM said its pro forma profit for the quarter was about twice what Wall Street had expected, at $0.60 per share.
Image source: Getty Images.
So what
That's the good news. Now here's the bad: Based on generally accepted accounting principles (GAAP), ABM actually lost $2.05 per diluted share in the second quarter, hurt by a pre-tax noncash impairment charge of $172.8 million related to goodwill and intangible assets. Sales, while meeting expectations, were still down 6% year over year.
But the best news of all in the second quarter, I'd say, is the fact that ABM generated positive free cash flow of $154.6 million, "reflecting one of the strongest quarterly performances by the Company," management said.
Now what
On March 26, ABM withdrew its previously issued fiscal 2020 guidance due to uncertainty caused by the COVID-19 pandemic. Still, as CEO Scott Salmirs pointed out, because of the coronavirus, "there is a higher degree of awareness for professional sanitization, hygiene, and safety" and ABM has a "proprietary EnhancedClean offering" that promises customers "a holistic, programmatic and specialized approach to cleaning and sanitizing as they develop their plans to reopen."
I think that's going to be an attractive proposition for those customers, and just the kind of service needed to keep ABM's free cash flowing strongly for as long as this pandemic lasts.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Now here's the bad: Based on generally accepted accounting principles (GAAP), ABM actually lost $2.05 per diluted share in the second quarter, hurt by a pre-tax noncash impairment charge of $172.8 million related to goodwill and intangible assets. Now what On March 26, ABM withdrew its previously issued fiscal 2020 guidance due to uncertainty caused by the COVID-19 pandemic. I think that's going to be an attractive proposition for those customers, and just the kind of service needed to keep ABM's free cash flowing strongly for as long as this pandemic lasts. | What happened On a modestly down day for the stock market, shares of janitorial services company ABM Industries (NYSE: ABM) broke from the pack and climbed 20% on Thursday on the back of a much better-than-expected earnings report. But the best news of all in the second quarter, I'd say, is the fact that ABM generated positive free cash flow of $154.6 million, "reflecting one of the strongest quarterly performances by the Company," management said. I think that's going to be an attractive proposition for those customers, and just the kind of service needed to keep ABM's free cash flowing strongly for as long as this pandemic lasts. | What happened On a modestly down day for the stock market, shares of janitorial services company ABM Industries (NYSE: ABM) broke from the pack and climbed 20% on Thursday on the back of a much better-than-expected earnings report. 10 stocks we like better than ABM Industries When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. Analysts had predicted that ABM's second-quarter earnings, released after close of trading on Wednesday, would show earnings per share of $0.29 on a pro forma basis, on sales of $1.49 billion. | But the best news of all in the second quarter, I'd say, is the fact that ABM generated positive free cash flow of $154.6 million, "reflecting one of the strongest quarterly performances by the Company," management said. What happened On a modestly down day for the stock market, shares of janitorial services company ABM Industries (NYSE: ABM) broke from the pack and climbed 20% on Thursday on the back of a much better-than-expected earnings report. Analysts had predicted that ABM's second-quarter earnings, released after close of trading on Wednesday, would show earnings per share of $0.29 on a pro forma basis, on sales of $1.49 billion. |
29357.0 | 2020-06-18 00:00:00 UTC | Noteworthy Thursday Option Activity: ULTA, ABM, GBT | ABM | https://www.nasdaq.com/articles/noteworthy-thursday-option-activity%3A-ulta-abm-gbt-2020-06-18 | nan | nan | Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Ulta Beauty Inc (Symbol: ULTA), where a total volume of 6,412 contracts has been traded thus far today, a contract volume which is representative of approximately 641,200 underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 47.8% of ULTA's average daily trading volume over the past month, of 1.3 million shares. Especially high volume was seen for the $225 strike call option expiring June 19, 2020, with 616 contracts trading so far today, representing approximately 61,600 underlying shares of ULTA. Below is a chart showing ULTA's trailing twelve month trading history, with the $225 strike highlighted in orange:
ABM Industries, Inc. (Symbol: ABM) options are showing a volume of 2,164 contracts thus far today. That number of contracts represents approximately 216,400 underlying shares, working out to a sizeable 47.5% of ABM's average daily trading volume over the past month, of 455,725 shares. Particularly high volume was seen for the $35 strike call option expiring June 19, 2020, with 1,072 contracts trading so far today, representing approximately 107,200 underlying shares of ABM. Below is a chart showing ABM's trailing twelve month trading history, with the $35 strike highlighted in orange:
And Global Blood Therapeutics Inc (Symbol: GBT) options are showing a volume of 3,198 contracts thus far today. That number of contracts represents approximately 319,800 underlying shares, working out to a sizeable 44.6% of GBT's average daily trading volume over the past month, of 717,375 shares. Especially high volume was seen for the $60 strike put option expiring June 19, 2020, with 1,251 contracts trading so far today, representing approximately 125,100 underlying shares of GBT. Below is a chart showing GBT's trailing twelve month trading history, with the $60 strike highlighted in orange:
For the various different available expirations for ULTA options, ABM options, or GBT options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Particularly high volume was seen for the $35 strike call option expiring June 19, 2020, with 1,072 contracts trading so far today, representing approximately 107,200 underlying shares of ABM. Below is a chart showing ULTA's trailing twelve month trading history, with the $225 strike highlighted in orange: ABM Industries, Inc. (Symbol: ABM) options are showing a volume of 2,164 contracts thus far today. That number of contracts represents approximately 216,400 underlying shares, working out to a sizeable 47.5% of ABM's average daily trading volume over the past month, of 455,725 shares. | Below is a chart showing ULTA's trailing twelve month trading history, with the $225 strike highlighted in orange: ABM Industries, Inc. (Symbol: ABM) options are showing a volume of 2,164 contracts thus far today. That number of contracts represents approximately 216,400 underlying shares, working out to a sizeable 47.5% of ABM's average daily trading volume over the past month, of 455,725 shares. Particularly high volume was seen for the $35 strike call option expiring June 19, 2020, with 1,072 contracts trading so far today, representing approximately 107,200 underlying shares of ABM. | Below is a chart showing ULTA's trailing twelve month trading history, with the $225 strike highlighted in orange: ABM Industries, Inc. (Symbol: ABM) options are showing a volume of 2,164 contracts thus far today. Particularly high volume was seen for the $35 strike call option expiring June 19, 2020, with 1,072 contracts trading so far today, representing approximately 107,200 underlying shares of ABM. That number of contracts represents approximately 216,400 underlying shares, working out to a sizeable 47.5% of ABM's average daily trading volume over the past month, of 455,725 shares. | Particularly high volume was seen for the $35 strike call option expiring June 19, 2020, with 1,072 contracts trading so far today, representing approximately 107,200 underlying shares of ABM. Below is a chart showing GBT's trailing twelve month trading history, with the $60 strike highlighted in orange: For the various different available expirations for ULTA options, ABM options, or GBT options, visit StockOptionsChannel.com. Below is a chart showing ULTA's trailing twelve month trading history, with the $225 strike highlighted in orange: ABM Industries, Inc. (Symbol: ABM) options are showing a volume of 2,164 contracts thus far today. |
29358.0 | 2020-06-18 00:00:00 UTC | BUZZ-U.S. STOCKS ON THE MOVE-Spotify, First Solar, JanOne, Designer Brands | ABM | https://www.nasdaq.com/articles/buzz-u.s.-stocks-on-the-move-spotify-first-solar-janone-designer-brands-2020-06-18 | nan | nan | Eikon search string for individual stock moves: STXBZ
The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi
The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh
The S&P 500 and the Dow were largely unchanged on Thursday as investors stayed on the sidelines amid an uptick in coronavirus infections in parts of the United States and an elevated level of weekly jobless claims. .N
At 11:30 ET, the Dow Jones Industrial Average .DJI was down 0.11% at 26,091.52. The S&P 500 .SPX was up 0.04% at 3,114.62 and the Nasdaq Composite .IXIC was up 0.31% at 9,941.389. The top three S&P 500 .PG.INX percentage gainers: ** Dish Network Corp DISH.OQ, up 6.9% ** Waters Corp WAT.N, up 5.4% ** Occidental Petroleum OXY.N, up 4.4% The top three S&P 500 .PL.INX percentage losers: ** Kroger Co KR.N, down 5.7% ** Biogen Inc BIIB.OQ, down 5.4% ** Alliance Data Systems Corp ADS.N, down 4% The top three NYSE .PG.N percentage gainers: ** Nuvrra Environmental Solutions NES.N, up 52.4% ** Ntn Buzztime NTN.N, up 30.3% ** Bbx Capital Corp BBX.N, up 21.2% The top three NYSE .PL.N percentage losers: ** American Shared Hospital Services AMS.N, down 24.5% ** China Rapid Finance XRF.N, down 15.2% ** Team Inc TISI.N, down 14.8% The top three Nasdaq .PG.O percentage gainers: ** Verifyme Inc VRME.O, up 3,104% ** Urban One Inc UONE.O, up 119.3% ** Aethlon Medical Inc AEMD.O, up 104.3% The top three Nasdaq .PL.O percentage losers: ** Arts Way Manufacturing ARTW.O, down 32.5 % ** Highway Holding HIHO.O, down 24.9 % ** Atlantic American Corp AAME.O, down 23.1 % ** ABM Industries ABM.N: up 16.1%
BUZZ-Gains as Q2 profit beats ** Orion Group Holdings ORN.N: up 14.6%
BUZZ-Jumps on $17 mln dredging contracts ** Carnival Corp CCL.N: down 1.4%
BUZZ-Drops on downbeat forecast, dismal Q2 results ** Rexahn Pharmaceuticals REXN.O: up 11.1%
BUZZ-Surges on merger agreement with Ocuphire ** Farmmi Inc FAMI.O: up 80.7%
BUZZ-Surges as subsidiary gets repeat order for mushroom supply ** U.S. Steel X.N: down 10.8%
BUZZ-Slides on $429 mln equity raise ** Chevron Corp CVX.N: up 0.8%
BUZZ-Chevron, Total most likely to enter deals during this downturn- Cowen ** Tonix Pharmaceuticals TNXP.O: up 6.0%
BUZZ-Jumps on expanding COVID-19 vaccine collaboration ** Adamas Pharmaceuticals ADMS.O: down 3.5%
BUZZ-Down on stopping development of multiple sclerosis drug ** Quicklogic Corp QUIK.O: down 18.6%
BUZZ-Slumps on lowered Q2 revenue forecast ** IDEAYA Biosciences Inc IDYA.O: down 20.3%
BUZZ-Falls on $100 mln stock offer ** Fox Factory FOXF.O: down 1.2%
BUZZ-Falls after co prices upsized stock offering ** Francesca's Holdings FRAN.O: down 6.8%
BUZZ-Drops as Q1 sales halve on pandemic-driven closures ** Globus Maritime GLBS.O: down 40.6%
BUZZ-Drops on pricing upsized offering at discount ** Leap Therapeutics LPTX.O: down 15.9%
BUZZ-Drops on $45 mln stock deal ** Tesla TSLA.O: up 1.3%
BUZZ-Jefferies hikes PT to second highest on Street ** Spotify SPOT.N: up 10.5%
BUZZ-Hits record high on DC Comics podcast deal ** Catalyst Biosciences CBIO.O: down 12.7%
BUZZ-Falls on $30 mln equity raise ** Biogen BIIB.O: down 5.4%
BUZZ-Slides after losing patent ruling for multiple sclerosis drug ** Athene Holding ATH.N: up 7.0%
BUZZ-Gains on $500 mln minority stake buy in insurer Jackson ** Hertz Global Holdings HTZ.N: down 5.5%
BUZZ-Falls a day after it suspends share sale ** Designer Brands DBI.N: down 3.4%
BUZZ-Drops on wider-than-expected loss due to store closures ** Amedisys AMED.O: up 3.8%
BUZZ-Benchmark upgrades on likely higher 2021 EBITDA ** First Solar FSLR.O: up 1.8%
BUZZ-Gains on 15-yr power purchase deal with Dow ** Iveric bio ISEE.O: up 23.9%
BUZZ-Jumps after big equity offering upsize ** 1-800-Flowers.Com FLWS.O: up 4.1%
BUZZ-Up on full-year outlook raise ** Paylocity Holding PCTY.O: up 7.3%
BUZZ-RBC raises rating, hikes PT to Street high
The 11 major S&P 500 sectors:
Communication Services
.SPLRCL
down 0.34%
Consumer Discretionary
.SPLRCD
down 0.10%
Consumer Staples
.SPLRCS
up 0.15%
Energy
.SPNY
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Financial
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(Compiled by Shivani Kumaresan in Bengaluru)
((Shivani.Kumaresan@thomsonreuters.com ; +1 646 223 8780))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The top three S&P 500 .PG.INX percentage gainers: ** Dish Network Corp DISH.OQ, up 6.9% ** Waters Corp WAT.N, up 5.4% ** Occidental Petroleum OXY.N, up 4.4% The top three S&P 500 .PL.INX percentage losers: ** Kroger Co KR.N, down 5.7% ** Biogen Inc BIIB.OQ, down 5.4% ** Alliance Data Systems Corp ADS.N, down 4% The top three NYSE .PG.N percentage gainers: ** Nuvrra Environmental Solutions NES.N, up 52.4% ** Ntn Buzztime NTN.N, up 30.3% ** Bbx Capital Corp BBX.N, up 21.2% The top three NYSE .PL.N percentage losers: ** American Shared Hospital Services AMS.N, down 24.5% ** China Rapid Finance XRF.N, down 15.2% ** Team Inc TISI.N, down 14.8% The top three Nasdaq .PG.O percentage gainers: ** Verifyme Inc VRME.O, up 3,104% ** Urban One Inc UONE.O, up 119.3% ** Aethlon Medical Inc AEMD.O, up 104.3% The top three Nasdaq .PL.O percentage losers: ** Arts Way Manufacturing ARTW.O, down 32.5 % ** Highway Holding HIHO.O, down 24.9 % ** Atlantic American Corp AAME.O, down 23.1 % ** ABM Industries ABM.N: up 16.1% BUZZ-Gains as Q2 profit beats ** Orion Group Holdings ORN.N: up 14.6% BUZZ-Jumps on $17 mln dredging contracts ** Carnival Corp CCL.N: down 1.4% BUZZ-Drops on downbeat forecast, dismal Q2 results ** Rexahn Pharmaceuticals REXN.O: up 11.1% BUZZ-Surges on merger agreement with Ocuphire ** Farmmi Inc FAMI.O: up 80.7% BUZZ-Surges as subsidiary gets repeat order for mushroom supply ** U.S. Steel X.N: down 10.8% BUZZ-Slides on $429 mln equity raise ** Chevron Corp CVX.N: up 0.8% BUZZ-Chevron, Total most likely to enter deals during this downturn- Cowen ** Tonix Pharmaceuticals TNXP.O: up 6.0% BUZZ-Jumps on expanding COVID-19 vaccine collaboration ** Adamas Pharmaceuticals ADMS.O: down 3.5% BUZZ-Down on stopping development of multiple sclerosis drug ** Quicklogic Corp QUIK.O: down 18.6% BUZZ-Slumps on lowered Q2 revenue forecast ** IDEAYA Biosciences Inc IDYA.O: down 20.3% BUZZ-Falls on $100 mln stock offer ** Fox Factory FOXF.O: down 1.2% BUZZ-Falls after co prices upsized stock offering ** Francesca's Holdings FRAN.O: down 6.8% BUZZ-Drops as Q1 sales halve on pandemic-driven closures ** Globus Maritime GLBS.O: down 40.6% BUZZ-Drops on pricing upsized offering at discount ** Leap Therapeutics LPTX.O: down 15.9% BUZZ-Drops on $45 mln stock deal ** Tesla TSLA.O: up 1.3% BUZZ-Jefferies hikes PT to second highest on Street ** Spotify SPOT.N: up 10.5% BUZZ-Hits record high on DC Comics podcast deal ** Catalyst Biosciences CBIO.O: down 12.7% BUZZ-Falls on $30 mln equity raise ** Biogen BIIB.O: down 5.4% BUZZ-Slides after losing patent ruling for multiple sclerosis drug ** Athene Holding ATH.N: up 7.0% BUZZ-Gains on $500 mln minority stake buy in insurer Jackson ** Hertz Global Holdings HTZ.N: down 5.5% BUZZ-Falls a day after it suspends share sale ** Designer Brands DBI.N: down 3.4% BUZZ-Drops on wider-than-expected loss due to store closures ** Amedisys AMED.O: up 3.8% BUZZ-Benchmark upgrades on likely higher 2021 EBITDA ** First Solar FSLR.O: up 1.8% BUZZ-Gains on 15-yr power purchase deal with Dow ** Iveric bio ISEE.O: up 23.9% BUZZ-Jumps after big equity offering upsize ** 1-800-Flowers.Com FLWS.O: up 4.1% BUZZ-Up on full-year outlook raise ** Paylocity Holding PCTY.O: up 7.3% BUZZ-RBC raises rating, hikes PT to Street high The 11 major S&P 500 sectors: Communication Services Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh The S&P 500 and the Dow were largely unchanged on Thursday as investors stayed on the sidelines amid an uptick in coronavirus infections in parts of the United States and an elevated level of weekly jobless claims. down 0.63% (Compiled by Shivani Kumaresan in Bengaluru) ((Shivani.Kumaresan@thomsonreuters.com ; +1 646 223 8780)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The top three S&P 500 .PG.INX percentage gainers: ** Dish Network Corp DISH.OQ, up 6.9% ** Waters Corp WAT.N, up 5.4% ** Occidental Petroleum OXY.N, up 4.4% The top three S&P 500 .PL.INX percentage losers: ** Kroger Co KR.N, down 5.7% ** Biogen Inc BIIB.OQ, down 5.4% ** Alliance Data Systems Corp ADS.N, down 4% The top three NYSE .PG.N percentage gainers: ** Nuvrra Environmental Solutions NES.N, up 52.4% ** Ntn Buzztime NTN.N, up 30.3% ** Bbx Capital Corp BBX.N, up 21.2% The top three NYSE .PL.N percentage losers: ** American Shared Hospital Services AMS.N, down 24.5% ** China Rapid Finance XRF.N, down 15.2% ** Team Inc TISI.N, down 14.8% The top three Nasdaq .PG.O percentage gainers: ** Verifyme Inc VRME.O, up 3,104% ** Urban One Inc UONE.O, up 119.3% ** Aethlon Medical Inc AEMD.O, up 104.3% The top three Nasdaq .PL.O percentage losers: ** Arts Way Manufacturing ARTW.O, down 32.5 % ** Highway Holding HIHO.O, down 24.9 % ** Atlantic American Corp AAME.O, down 23.1 % ** ABM Industries ABM.N: up 16.1% BUZZ-Gains as Q2 profit beats ** Orion Group Holdings ORN.N: up 14.6% BUZZ-Jumps on $17 mln dredging contracts ** Carnival Corp CCL.N: down 1.4% BUZZ-Drops on downbeat forecast, dismal Q2 results ** Rexahn Pharmaceuticals REXN.O: up 11.1% BUZZ-Surges on merger agreement with Ocuphire ** Farmmi Inc FAMI.O: up 80.7% BUZZ-Surges as subsidiary gets repeat order for mushroom supply ** U.S. Steel X.N: down 10.8% BUZZ-Slides on $429 mln equity raise ** Chevron Corp CVX.N: up 0.8% BUZZ-Chevron, Total most likely to enter deals during this downturn- Cowen ** Tonix Pharmaceuticals TNXP.O: up 6.0% BUZZ-Jumps on expanding COVID-19 vaccine collaboration ** Adamas Pharmaceuticals ADMS.O: down 3.5% BUZZ-Down on stopping development of multiple sclerosis drug ** Quicklogic Corp QUIK.O: down 18.6% BUZZ-Slumps on lowered Q2 revenue forecast ** IDEAYA Biosciences Inc IDYA.O: down 20.3% BUZZ-Falls on $100 mln stock offer ** Fox Factory FOXF.O: down 1.2% BUZZ-Falls after co prices upsized stock offering ** Francesca's Holdings FRAN.O: down 6.8% BUZZ-Drops as Q1 sales halve on pandemic-driven closures ** Globus Maritime GLBS.O: down 40.6% BUZZ-Drops on pricing upsized offering at discount ** Leap Therapeutics LPTX.O: down 15.9% BUZZ-Drops on $45 mln stock deal ** Tesla TSLA.O: up 1.3% BUZZ-Jefferies hikes PT to second highest on Street ** Spotify SPOT.N: up 10.5% BUZZ-Hits record high on DC Comics podcast deal ** Catalyst Biosciences CBIO.O: down 12.7% BUZZ-Falls on $30 mln equity raise ** Biogen BIIB.O: down 5.4% BUZZ-Slides after losing patent ruling for multiple sclerosis drug ** Athene Holding ATH.N: up 7.0% BUZZ-Gains on $500 mln minority stake buy in insurer Jackson ** Hertz Global Holdings HTZ.N: down 5.5% BUZZ-Falls a day after it suspends share sale ** Designer Brands DBI.N: down 3.4% BUZZ-Drops on wider-than-expected loss due to store closures ** Amedisys AMED.O: up 3.8% BUZZ-Benchmark upgrades on likely higher 2021 EBITDA ** First Solar FSLR.O: up 1.8% BUZZ-Gains on 15-yr power purchase deal with Dow ** Iveric bio ISEE.O: up 23.9% BUZZ-Jumps after big equity offering upsize ** 1-800-Flowers.Com FLWS.O: up 4.1% BUZZ-Up on full-year outlook raise ** Paylocity Holding PCTY.O: up 7.3% BUZZ-RBC raises rating, hikes PT to Street high The 11 major S&P 500 sectors: Communication Services Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh The S&P 500 and the Dow were largely unchanged on Thursday as investors stayed on the sidelines amid an uptick in coronavirus infections in parts of the United States and an elevated level of weekly jobless claims. .N At 11:30 ET, the Dow Jones Industrial Average .DJI was down 0.11% at 26,091.52. | The top three S&P 500 .PG.INX percentage gainers: ** Dish Network Corp DISH.OQ, up 6.9% ** Waters Corp WAT.N, up 5.4% ** Occidental Petroleum OXY.N, up 4.4% The top three S&P 500 .PL.INX percentage losers: ** Kroger Co KR.N, down 5.7% ** Biogen Inc BIIB.OQ, down 5.4% ** Alliance Data Systems Corp ADS.N, down 4% The top three NYSE .PG.N percentage gainers: ** Nuvrra Environmental Solutions NES.N, up 52.4% ** Ntn Buzztime NTN.N, up 30.3% ** Bbx Capital Corp BBX.N, up 21.2% The top three NYSE .PL.N percentage losers: ** American Shared Hospital Services AMS.N, down 24.5% ** China Rapid Finance XRF.N, down 15.2% ** Team Inc TISI.N, down 14.8% The top three Nasdaq .PG.O percentage gainers: ** Verifyme Inc VRME.O, up 3,104% ** Urban One Inc UONE.O, up 119.3% ** Aethlon Medical Inc AEMD.O, up 104.3% The top three Nasdaq .PL.O percentage losers: ** Arts Way Manufacturing ARTW.O, down 32.5 % ** Highway Holding HIHO.O, down 24.9 % ** Atlantic American Corp AAME.O, down 23.1 % ** ABM Industries ABM.N: up 16.1% BUZZ-Gains as Q2 profit beats ** Orion Group Holdings ORN.N: up 14.6% BUZZ-Jumps on $17 mln dredging contracts ** Carnival Corp CCL.N: down 1.4% BUZZ-Drops on downbeat forecast, dismal Q2 results ** Rexahn Pharmaceuticals REXN.O: up 11.1% BUZZ-Surges on merger agreement with Ocuphire ** Farmmi Inc FAMI.O: up 80.7% BUZZ-Surges as subsidiary gets repeat order for mushroom supply ** U.S. Steel X.N: down 10.8% BUZZ-Slides on $429 mln equity raise ** Chevron Corp CVX.N: up 0.8% BUZZ-Chevron, Total most likely to enter deals during this downturn- Cowen ** Tonix Pharmaceuticals TNXP.O: up 6.0% BUZZ-Jumps on expanding COVID-19 vaccine collaboration ** Adamas Pharmaceuticals ADMS.O: down 3.5% BUZZ-Down on stopping development of multiple sclerosis drug ** Quicklogic Corp QUIK.O: down 18.6% BUZZ-Slumps on lowered Q2 revenue forecast ** IDEAYA Biosciences Inc IDYA.O: down 20.3% BUZZ-Falls on $100 mln stock offer ** Fox Factory FOXF.O: down 1.2% BUZZ-Falls after co prices upsized stock offering ** Francesca's Holdings FRAN.O: down 6.8% BUZZ-Drops as Q1 sales halve on pandemic-driven closures ** Globus Maritime GLBS.O: down 40.6% BUZZ-Drops on pricing upsized offering at discount ** Leap Therapeutics LPTX.O: down 15.9% BUZZ-Drops on $45 mln stock deal ** Tesla TSLA.O: up 1.3% BUZZ-Jefferies hikes PT to second highest on Street ** Spotify SPOT.N: up 10.5% BUZZ-Hits record high on DC Comics podcast deal ** Catalyst Biosciences CBIO.O: down 12.7% BUZZ-Falls on $30 mln equity raise ** Biogen BIIB.O: down 5.4% BUZZ-Slides after losing patent ruling for multiple sclerosis drug ** Athene Holding ATH.N: up 7.0% BUZZ-Gains on $500 mln minority stake buy in insurer Jackson ** Hertz Global Holdings HTZ.N: down 5.5% BUZZ-Falls a day after it suspends share sale ** Designer Brands DBI.N: down 3.4% BUZZ-Drops on wider-than-expected loss due to store closures ** Amedisys AMED.O: up 3.8% BUZZ-Benchmark upgrades on likely higher 2021 EBITDA ** First Solar FSLR.O: up 1.8% BUZZ-Gains on 15-yr power purchase deal with Dow ** Iveric bio ISEE.O: up 23.9% BUZZ-Jumps after big equity offering upsize ** 1-800-Flowers.Com FLWS.O: up 4.1% BUZZ-Up on full-year outlook raise ** Paylocity Holding PCTY.O: up 7.3% BUZZ-RBC raises rating, hikes PT to Street high The 11 major S&P 500 sectors: Communication Services down 0.34% Consumer Discretionary down 0.10% Consumer Staples | The top three S&P 500 .PG.INX percentage gainers: ** Dish Network Corp DISH.OQ, up 6.9% ** Waters Corp WAT.N, up 5.4% ** Occidental Petroleum OXY.N, up 4.4% The top three S&P 500 .PL.INX percentage losers: ** Kroger Co KR.N, down 5.7% ** Biogen Inc BIIB.OQ, down 5.4% ** Alliance Data Systems Corp ADS.N, down 4% The top three NYSE .PG.N percentage gainers: ** Nuvrra Environmental Solutions NES.N, up 52.4% ** Ntn Buzztime NTN.N, up 30.3% ** Bbx Capital Corp BBX.N, up 21.2% The top three NYSE .PL.N percentage losers: ** American Shared Hospital Services AMS.N, down 24.5% ** China Rapid Finance XRF.N, down 15.2% ** Team Inc TISI.N, down 14.8% The top three Nasdaq .PG.O percentage gainers: ** Verifyme Inc VRME.O, up 3,104% ** Urban One Inc UONE.O, up 119.3% ** Aethlon Medical Inc AEMD.O, up 104.3% The top three Nasdaq .PL.O percentage losers: ** Arts Way Manufacturing ARTW.O, down 32.5 % ** Highway Holding HIHO.O, down 24.9 % ** Atlantic American Corp AAME.O, down 23.1 % ** ABM Industries ABM.N: up 16.1% BUZZ-Gains as Q2 profit beats ** Orion Group Holdings ORN.N: up 14.6% BUZZ-Jumps on $17 mln dredging contracts ** Carnival Corp CCL.N: down 1.4% BUZZ-Drops on downbeat forecast, dismal Q2 results ** Rexahn Pharmaceuticals REXN.O: up 11.1% BUZZ-Surges on merger agreement with Ocuphire ** Farmmi Inc FAMI.O: up 80.7% BUZZ-Surges as subsidiary gets repeat order for mushroom supply ** U.S. Steel X.N: down 10.8% BUZZ-Slides on $429 mln equity raise ** Chevron Corp CVX.N: up 0.8% BUZZ-Chevron, Total most likely to enter deals during this downturn- Cowen ** Tonix Pharmaceuticals TNXP.O: up 6.0% BUZZ-Jumps on expanding COVID-19 vaccine collaboration ** Adamas Pharmaceuticals ADMS.O: down 3.5% BUZZ-Down on stopping development of multiple sclerosis drug ** Quicklogic Corp QUIK.O: down 18.6% BUZZ-Slumps on lowered Q2 revenue forecast ** IDEAYA Biosciences Inc IDYA.O: down 20.3% BUZZ-Falls on $100 mln stock offer ** Fox Factory FOXF.O: down 1.2% BUZZ-Falls after co prices upsized stock offering ** Francesca's Holdings FRAN.O: down 6.8% BUZZ-Drops as Q1 sales halve on pandemic-driven closures ** Globus Maritime GLBS.O: down 40.6% BUZZ-Drops on pricing upsized offering at discount ** Leap Therapeutics LPTX.O: down 15.9% BUZZ-Drops on $45 mln stock deal ** Tesla TSLA.O: up 1.3% BUZZ-Jefferies hikes PT to second highest on Street ** Spotify SPOT.N: up 10.5% BUZZ-Hits record high on DC Comics podcast deal ** Catalyst Biosciences CBIO.O: down 12.7% BUZZ-Falls on $30 mln equity raise ** Biogen BIIB.O: down 5.4% BUZZ-Slides after losing patent ruling for multiple sclerosis drug ** Athene Holding ATH.N: up 7.0% BUZZ-Gains on $500 mln minority stake buy in insurer Jackson ** Hertz Global Holdings HTZ.N: down 5.5% BUZZ-Falls a day after it suspends share sale ** Designer Brands DBI.N: down 3.4% BUZZ-Drops on wider-than-expected loss due to store closures ** Amedisys AMED.O: up 3.8% BUZZ-Benchmark upgrades on likely higher 2021 EBITDA ** First Solar FSLR.O: up 1.8% BUZZ-Gains on 15-yr power purchase deal with Dow ** Iveric bio ISEE.O: up 23.9% BUZZ-Jumps after big equity offering upsize ** 1-800-Flowers.Com FLWS.O: up 4.1% BUZZ-Up on full-year outlook raise ** Paylocity Holding PCTY.O: up 7.3% BUZZ-RBC raises rating, hikes PT to Street high The 11 major S&P 500 sectors: Communication Services Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh The S&P 500 and the Dow were largely unchanged on Thursday as investors stayed on the sidelines amid an uptick in coronavirus infections in parts of the United States and an elevated level of weekly jobless claims. .N At 11:30 ET, the Dow Jones Industrial Average .DJI was down 0.11% at 26,091.52. |
29359.0 | 2020-06-18 00:00:00 UTC | ABM Industries Inc (ABM) Q2 2020 Earnings Call Transcript | ABM | https://www.nasdaq.com/articles/abm-industries-inc-abm-q2-2020-earnings-call-transcript-2020-06-18 | nan | nan | Image source: The Motley Fool.
ABM Industries Inc (NYSE: ABM)
Q2 2020 Earnings Call
Jun 18, 2020, 8:30 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Greetings and welcome to the ABM Industries Second Quarter 2020 Earnings Call. [Operator Instructions].
I'd now like to turn the conference over to your host, Ms. Susie Kim, Vice President of Investor Relations and Treasurer for ABM Industries. Thank you. You may begin.
Susie A. Kim -- Investor Relations & Treasury
Thank you all for joining us this morning. With us today are Scott Salmirs, our President and Chief Executive Officer; and Anthony Scaglione, Executive Vice President and Chief Financial Officer. We issued our press release yesterday afternoon, announcing our second quarter and fiscal 2020 financial results. A copy of this release and the company's slide presentation can be found on our corporate website.
Before we begin, I would like to remind you that our call and presentation today contain predictions, estimates and other forward-looking statements. Our use of the words estimate, expect, and similar expressions are intended to identify these statements. These statements represent our current judgment of what the future holds. While we believe them to be reasonable, these statements are subject to risks and uncertainties that could cause our actual results to differ materially. These factors are described in a slide that accompanies our presentation, as well as in our filings with the SEC.
During the course of this call, certain non-GAAP financial information will be presented. A reconciliation of those numbers to GAAP financial measures is available at the end of the presentation and on the company's website under the Investor tab.
I would now like to turn the call over to Scott.
Scott Salmirs -- President and Chief Executive Officer
Thanks Susie and good morning to everyone on today's call. First and foremost, I hope you and your loved ones are all safe and healthy during these extraordinary times. While we will be providing our customary review to the second quarter results we released yesterday afternoon, I'm sure we can all agree, that nothing about the way we live and operate today is the same, as it was, when we last spoke to you, and today's discussion will be unique, compared to our previous earnings calls as well.
Almost as soon as we reported our solid first quarter results in March, COVID-19 unfolded quickly throughout the country. Shelter in-place became our new way of life and nearly every industry has been impacted by the disruptions and closures that have occurred. By mid-March, our services were classified as essential, and we were on the front lines of a pandemic. Over the past few months, the [Indecipherable] for our organization has been completely redefined, during a dynamic ever shifting environment, we rapidly mobilized to address the safety of our teammates and stakeholders, and the heightened needs of our clients. Our corporate teams also worked around the clock to prepare us financially for the unknown. And as you can imagine, for a company like ABM, with 20,000 plus clients and 140,000 employees, coordination of these critical elements was far from simple.
We deployed an operational task force, dedicated to understanding infection control and cleaning protocols based on the guidance and recommendations of the CDC, World Health Organization, and OSHA, among others. We also set up an additional 18 cross-functional task force, or as we call them internally, our pods; spanning field operations, finance, legal, human resources and of course, our large enterprise shared service center. These pods covered areas of critical importance. We've all read and most likely experienced the supply shortages that have been rampant throughout the pandemic. On top of that, cities were changing personal protective equipment standards for employers frequently. I'm so pleased to say, that we've been able to meet the demands of our clients during this frenzied environment, because of our procurement scale and our pod structure.
One of the pods is focused on daily site level shutdowns, enabling us to track labor and modulate staffing levels up and down dynamically. We had one of our strongest cash flow quarters ever, which was the direct result of our liquidity pods, and the intense focus on collections on payables, and the list of mission critical pods, ensuring business continuity goes on and on. So we've risen to every challenge and our second quarter results demonstrate the agility and action oriented execution of our teams, and continue to be best-in-class. These results don't happen by accident. The coordination across the firm was simply incredible. I have never been prouder to be part of ABM, and my confidence in our organization's ability to withstand any event, could not be stronger.
So let's get to some data. For the first quarter, we achieved revenues of $1.5 billion, a revenue decline of only 6.2% compared to last year, and this was driven predominantly by our Aviation division, with passenger air travel down 95% by April, revenue declines in our Aviation division were certainly expected. Frankly, our top line results for the quarter were not as dramatic, as may have been expected, given how hard commerce was hit by the pandemic. Tempering the revenue decline was a record quarter for higher margin work orders, which we call tags, as client demand surged and we responded to protect their facilities.
We also achieved new sales bookings of more than $500 million year-to-date, an incredibly positive milestone for this time of the year, even by pre-COVID standards, and I would ask you to pause on this and recognize that we contracted for over a $0.5 billion in new business for the first half of this year in this environment. Our results for the quarter also underscore the adaptability and nimbleness of our variable cost structure, particularly during periods of fluctuating demand. We manage direct labor, our largest cost by far, to align with the business dynamics. This, in addition to higher margin Tegra, led to adjusted earnings and EBITDA margins that materially exceeded our performance last year, and materially exceeded any expectations we could have had, as COIVID became a reality. That's another data point to pause and reflect on.
So our ability to execute through crisis speaks for itself. Looking forward, we recognized early on, janitorial services were going to take on much more significance, in what we are now calling the new normal. We knew that our properties cleaning protocols will become the top priority to facility management property owners, and in response to that, we began developing our proprietary enhanced clean program in March. Through our three step approach, EnhancedClean will provide clients with a programmatic methodology that has been reviewed by experts, using hospital grade disinfectants, specialized equipment, dedicated signage, and innovative technology. Our solutions include hygiene and safety protocols, utilization of disinfecting procedures like electrostatic spraying and antimicrobial treatments, products for high touch surfaces, personal protective equipment, and employee training in disinfection best practices. This has all been validated by an advisory panel of external and internal experts, and includes evidence based testing to confirm a lack of viral presence. We believe over time, EnhancedClean will become part of our clients permanent scope, and not just a tag or work order. Our view is that virus protection will be a lasting change well past COVID.
We've also become a leading voice for our industry. In April, we announced our partnership with six of the largest privately owned cleaning contractors, to form the Cleaning Coalition of America. As a founding member, and with our Head of Strategy as President, ABM is committed to representing an industry with more than 1 million workers who are on the frontlines of this pandemic across the country. Our coalition represents the needs of an industry that has been playing a vital role in keeping essential services operating, as the country works to recover from this pandemic. So clearly, we've delivered in in an incredibly tough and unpredictable environment. But I'm sure the question on your minds, is about what we are seeing today and how we anticipate broader economic recoveries to occur.
First, let's all remember it's only been three months under this new operating environment. So for us to say we have clear insight would be a mistake. Market dynamics keep changing, and there are still too many unknowns today. Will schools reopen? How quickly will air travel start returning? Will there be a COVID spike in the fall or will the curve continue to flatten, and people return to their offices? All unknowns, and clearly out of our control. So for us to estimate guidance for the remainder of the year doesn't make any sense, given so many near term variables. However, I'll take you through some of the longer-term fundamentals we see in our end markets that should give you a perspective, as we navigate the next year or two.
So let me set the framework. Today, clients are starting to look ahead and explore how and when they will reenter the workplace in the new normal. In preparation for this, we see a shift toward wellness and sustainability clearly happening, and our clients are intensely focused on providing their stakeholders with a safe environment, and they want to provide transparency about what they are doing to achieve this. So, our services are going to move to the forefront, rather than behind the scenes. Access to staffing and supplies is also a top priority. With the new realization, that cost is only one component of the decision tree, given their experience over the last few months. Service providers with a robust supply chain and scale will be prioritized.
With what ABM brings as a holistic solution versus our fragmented regional competitors, we believe we will undoubtedly become the clear choice in the future. In the short term, it still comes down to when will people be ready to return to their spaces and more normalized daily life and what will that mean. Depending on the industry, there are a variety of factors, spanning a wide spectrum of possibilities.
So, let's go through our end markets, and let's start with B&I and T&M. Pre-COVID, B&I and T&M had been stable performers, growing with strategic accounts, while driving profit through strategic labor management. With the pandemic, we saw clients' overdrive COVID related tag orders, as they engaged in crisis response modes to protect their occupants. We are currently within the peak period of site closures and work-from-home protocols, so daily services have modulated down with reduced occupancy since that initial period. Despite the downturn, we're starting to see clients plan workplace reentries, as markets reopen and as a result, we believe EnhancedClean interest will build as well. This could result in additional tag work and longer term scope changes, because EnhancedClean is a higher margin offering, we see long-term incremental margin capture in both of these segments, and we believe organic growth has the potential to move from GDP to GDP plus, as indications are that many clients will be spending more for cleaning. Again, we're only three months in and this is what we are surmising at this point.
Aviation and Education are probably the two segments that have been and will be the most volatile operationally in the near term. For Aviation, passenger air travel has declined dramatically, and it's uncertain when both domestic and international travel will return to anywhere near its pre-COVID volumes. Prior to the pandemic, we had begun shifting our business mix, prioritizing airport opportunities over airlines. We believe this will serve us well, as we see opportunities at airports around the country, with investments in infrastructure and facility upgrades still planned. You may have seen the unveiling of Terminal B last week at LaGuardia Airport, where we are the primary service provider. Now that being said, recovery in Aviation sector will still be longer term.
Within Education, I'm sure many of you have personally experienced how K-12 and higher education institutions have moved to remote learning formats in the short term. During the second quarter, we saw education clients who are very loyal to their extended staff at ABM, accelerate summer claims [Phonetic] to the spring and we are cautiously optimistic that our work will continue through this intermittent phase, as infection control is a top priority for educators and parents. But, fall returns in both K-12 and universities have not yet been defined. Some schools in the south are talking about full returns, including intramural sports, while schools in the Northeast have discussed delayed returns. Many of the decisions for the fall will come to a head in mid-July. So we will have a far better outlook by the end of Q3. But one thing we are certain of, once back, our EnhancedClean disinfection control will be front and center in the education space.
Technical Solutions exists right in the middle of the spectrum for us. We have a strong backlog coming into the year and that fortunately remains so today, which is the takeaway for our investors. Projects were paused, not canceled. The churn in Q2 was impacted by the decreased ability to access project locations. With Technical Solutions' primary end market in the Education sector, school administrators were operating in crisis mode and retrofit projects weren't top of mind in the second quarter. Student safety and future planning was. Therefore, we're seeing a short to medium term impact.
With that said, Education clients will be looking at their budgets and seeking ways to ease constraints, especially through a slowdown or a recession. Across the country, we have seen school budget cuts, ranging from 7% to 25% and this plays right into the compelling cost savings offering that our technical solutions business has been built on. Retrofit projects are capital expenses and energy savings of 30% plus translate to operating budget savings and allows schools to retain teachers and fund after school programs. We had a big energy project in the south just two weeks ago, a $6 million capital retrofit project, translated to energy savings, that allowed 15 teachers targeted for exit to remain on the payroll, and all after school programs to stay in place. So we believe 2021 could see some strong wins in ATS.
So when you package all this up, while we are operating under conditions that can't be estimated financially with any degree of certainty over the next six months, the long-term fundamentals for our business are stronger than they've ever been. Having ample liquidity and the flexibility to invest in growth areas, such as EnhancedClean, will allow us to capitalize on a range of opportunities in the post-COVID world.
As we sit here in June, we're moving from the period in the March-April timeframe that for us, was critically reactive into a period that is far more prescriptive and planned and we couldn't be more ready.
Finally, I want to address Anthony. As many of you know, Anthony and I began this journey together five years ago, and over that time ABM has transformed to become the powerful enterprise it is today. Anthony has been instrumental in creating our strategy, executing our goals, supporting our culture and developing so much of the talent that makes ABM what it is today. And when it comes to talent development, that includes Dean Chin, who will be named our Interim CFO. Anthony has not only been among my most respected colleagues, but he is my friend as well. So this is really bittersweet. I know I speak for everyone at ABM, when I express our gratitude for Anthony's contributions over his 11 years of service, and we wish him the absolute best of luck, as he pursues the next phase of his personal and professional journey. He will always be an invaluable part of ABM's past and future success, and the permanent member of the ABM family.
With that, I'll turn it over to Anthony one last time to cover our financial results. Anthony?
Anthony Scaglione -- Chief Financial Officer
Thanks for those kind words Scott. It has been a privilege to be part of the ABM team over the last 11 years. Scott has always said, the foundation of ABM's strength is our people and that is what I will miss the most. At ABM, I've been granted so many opportunities, specifically over the last five years as CFO. Among the most special we're spending time with our extraordinary teams, across our frontlines and throughout our corporate offices, both in the U.S. and internationally. I can attest, that we have the most passionate team, who are often the unsung hero of some of the country's most important facilities, and of course, everyone that I have worked with on the finance team over the years, has impacted my life, both personally and professionally. While I am excited for the next phase of my professional journey, I am sad to leave the amazing people here at ABM. I have the utmost confidence that this team will lead ABM to an even brighter future and continue to unlock great success, which I'll always cheer on.
Now on to the second quarter. Revenues for the quarter were $1.5 billion, total decrease of approximately 6% compared to last year. Reflecting the COVID-19 operating environment, predominantly within Aviation, Technical Solution and Education. Partially offsetting the revenue decline was record work orders, or as we call them tags. Tags were a strength in the quarter for B&I, Technology and Manufacturing, as well as education. During the quarter, we also recorded an impairment charge. We typically perform our annual assessment of goodwill during the fourth quarter, unless there is a potential indicator of impairment. As a result of the impact COVID-19 had on our industry groups, notably within Aviation and Education, we performed the assessment of our goodwill and intangible values during the second quarter.
With the assistance of third party valuation experts and factoring in the impact of COVID-19 on the more sensitive end markets impacted by the pandemic, as well as higher overall discount rate, we recorded a pre-tax non-cash charge of $172.8 million or $2.55 per diluted share. Therefore, on a GAAP basis, we reported a loss from continuing operations of $136.8 million or $2.05 per diluted share. On a year-over-year basis, I'd also like to remind everyone that the second quarter saw one extra working day, which had traditionally equated to approximately $7 million in additional labor expense. Given the variability during the quarter, we estimate that this had an approximately $6 million impact during the quarter.
On an adjusted basis, income from continuing operations for the quarter increased to $40.4 million or $0.60 per diluted share compared to $31.5 million or $0.47 last year. Our year-over-year growth was driven operationally by our higher margin tag revenue, as well as lower expenses associated with a reduction in discretionary spend, share-based comp reversals and the timing of IT project expenses. Partially offsetting this quarter's performance was an increase in bad debt expense of approximately $9 million, due to specific reserves established for client receivables in certain industries. We will continue to monitor client receivables and overall credit conditions and fill this reserve was prudent at the time. We also do not see any further increases. Our strong performance during the quarter led to adjusted EBITDA of approximately $91 million at a margin rate of 6.1% compared to $84.7 million or 5.3% last year.
Now turning to our segment results; as a reminder, these results reflect the impact of COVID-19 on revenues and operating profit across most of our industry groups. Additionally, at the operating profit segment level, these results also include the non-cash impairment charge related to goodwill and intangibles, within Aviation, Education and Technical Solutions.
Moving to B&I B&I delivered $785.6 million in revenue and operating profit grew more than 20% to $59.2 million from a margin rate of 7.5%. Despite the modest decline in revenue, which was driven by less work in Parking and Facility Services, B&I experienced a rise in janitorial demand. More specifically, tags and expansion with national clients grew immediately, as they sought our assistance during the onset of the pandemic and throughout the quarter. We also exited some lower margin accounts in our U.S. business, and as a reminder, apart from a relatively small presence in sports and entertainment arena and consumer related parking, we are not heavily exposed to Industries that may have had a more challenging operating environment during the pandemic, such as hospitality and retail.
Technology and Manufacturing reported revenues of $233.7 million, up 4.2% versus last year. Operating profit was $19.7 million for an operating margin of 8.4%. New business with manufacturing, logistics and high-tech clients enabled T&M to offset any business declines from COVID disruptions and certain contract losses from last year. Clients in T&M look to ABM, to ensure the continued operating environment in many critical end markets, like food processing, industrial manufacturing and utilities. Janitorial, including higher tag demand and facility services all grew versus last year. Operating profit margins were impacted modestly by higher reserves for client receivables, mainly associated with the pandemic, as well as the lingering impact of loss accounts from last year.
Aviation reported revenues of $185 million. An impairment charge of $61.1 million led to an operating loss of $60.5 million. As we discussed on last quarter's call, we expressed Aviation's vulnerability to COVID-19 and our results for the quarter demonstrate the unfortunate developments that have occurred in the broader macro operating environment since then. We have been able to implement cost and expense actions aggressively to mitigate pandemic related effects. For example, dynamic labor reporting allow us to reduce labor, that align with client demand. We believe enhanced clean services, such as electrostatic spraying, could be part of the new norm in this segment given the heavy impact that the pandemic has had on the travel industry. While we see headwinds and significant uncertainty in the segment, and our monitoring passenger travel data and statistics to gauge future demands, we are repositioning the portfolio to better align ABM in this segment going forward.
Revenue in Education was $200.1 million, down $9 million from last year, reflecting pandemic related school closures. An impairment charge of $99.3 million, related to both our legacy and GCA portfolio led to an operating loss of $85.8 million. Excluding the impairment, operating profit would have grown by 28.6% to $13.6 million from an operating margin of 6.8%, higher than our expectation for Q2, given the timing of summer claims. While we continue to see tremendous opportunity for long-term outsourcing trends in this segment, the current pandemic has shifted demand and is unknown when and to what degree schools will reopen in the fall.
Finally on to Technical Solutions. Technical Solutions reported revenues of $122.3 million, down from last year's $135.9 million, due to lower project churn. As Scott mentioned, the pandemic prevented access to certain project sites, mainly during the latter part of the quarter. A $12.4 million impairment charge related to our U.K. operations led to an operating loss of $8.4 million. Excluding the impairment, operating profit would have been $3.9 million or an operating margin of 3.2%. Also impacting this quarter's results was the negative impact of higher commission expense from the amortization of commissions, that were capitalized last year due to ASC 606.
Turning to cash and liquidity; cash flow from operations grew approximately $162 million during the quarter and free cash flow was approximately $155 million. As Scott touched on, the liquidity office we mobilized immediately at the onset of the pandemic was instrumental in achieving these results. We implemented acute tracking related to critical accounts receivables and payables across all main drivers, including billing and collection, direct and indirect payroll, procurement and taxes among other aspects. The work of all these cross-functional teams, in conjunction with the strategic March drawdown of our credit facility, enabled us to end the quarter with record cash and cash equivalents of $556 million.
To strengthen our liquidity even further, we recently negotiated our credit facility. This was a pre-emptive measure intended to allow us maximum flexibility, as we navigate the coming quarters during the pandemic. As you will see the full amendment filings of our 10-Q later this week. Some of the changes in the credit facility include; favorable max leverage limit, especially over the next four quarters, out of an abundance of caution given the trailing calculation of our bank defined EBITDA. The ability to net up to $100 million, as part of our max leverage calculation. Revised fixed charge coverage ratios that reflect the potential for additional borrowings and associated interest, and provisions that protect our Board's ability to continue ABM's long-standing dividend policy. In addition, the amended facility bears interest at a higher cost of borrowing and also contains other negative covenants, given the flexibility provided by aforementioned provision.
As evidenced by our pre and post-amendment covenant achievement for the second quarter, these actions were precautionary and we remain committed to using our strong cash flow generation and balance to delever and continue to invest in our growth. We've ended the quarter with total debt, including standby letters of credit of $1.4 billion and a bank adjusted leverage ratio of 3.68 time or 3.97 times under our pre-amendment facility. We also repurchased approximately 300,000 shares of common stock for $5.1 million, and in March we suspended all further share repurchases, as we focus on prudent liquidity management throughout this crisis.
During the quarter, we paid our 216th consecutive quarterly cash dividend, for a total distribution of approximately $12.3 million, and as stated in our earnings release, I am pleased to share that our Board of Directors approved our 117th consecutive quarterly cash dividend. During the quarter, Congress [Technical Issues] a similar active path, which provided certain stimulus measures to the broader economy. We have adopted some of the business tax provisions that were permitted under this new legislation. This includes a refundable credit for employee retention, primarily in the U.K., as well as the deferral of certain U.S. payroll tax remittances, through December 31, 2020 to the future year, with 50% of the deferred amounts due in calendar 2021, and the remaining due in calendar 2022.
While we're on the topic of taxes, I also want to note that before the pandemic, we had originally anticipated $7 million related to discrete tax items, such as the work opportunity tax credit and the tax impact of stock-based compensation awards. Given the disruption to traditional hiring practices due to the pandemic, we currently believe WOTC will be lower this fiscal year, as a result of the current environment. And as I mentioned earlier, just as we thought of the extra working day in Q2 this year, we will see one less working day in Q4.
Finally, I'd like to reiterate Scott's statement that we have withdrawn our annual guidance outlook. Despite the immeasurable nature of current events, I did want to provide some additional financial context of actions have been taken after the second quarter. These actions may modulate over time, as we align client demand for our services during the pandemic and beyond.
At the project level as discussed, we have instituted several measures to better match revenue changes with labor. We have implemented temporary reductions in salary across certain staffing management, temporarily furloughed and reduced hours for certain corporate staff, while continuing to provide full benefit to those impacted. We have reduced or suspended certain benefits, such as our 401(k) matching, and while these actions were difficult, we felt they were the right actions to help us manage through this uncertain period, while providing us enough flexibility to manage backup as we see demand and the general market and operating environment stabilize.
In conclusion, I will echo Scott's pride in our team for their execution and determination during this is very difficult time. Under unprecedented conditions, we've risen once again to achieve and even exceed our goals. I remain excited about the momentum ABM will continue to build into the future.
Operator, we are now ready for questions.
Questions and Answers:
Operator
Thank you. At this time, we'll be conducting a question-and-answer session. [Operator Instructions]. Our first question comes from the line of Sean Eastman with KeyBanc Capital Markets. Please proceed with your question.
Sean Eastman -- KeyBanc Capital Markets -- Analyst
Hi team. Thanks for taking my questions. Congratulations on a good quarter. And Anthony, congratulations on, what seems to be an exciting new opportunity. So first one for me is, clearly blowout margin performance in the quarter, helped in part by the tags, and I'm just curious how that those type of work orders trended into the third quarter, as we move into sort of this peak facility closure environment? And I guess more broadly what we're trying to flesh out is, how sustainable this margin performance was this quarter, and whether there is a structural change in margins in effect here?
Scott Salmirs -- President and Chief Executive Officer
Yeah, I'll take that. So I just want to frame this whole conversation by, this is still really early on, right, and we did see great tag performance in Q2, and we believe there is an opportunity for it to continue into Q3, as offices reopen and the economy reemerges. Our longer term goal Sean, is to convert those tag work orders into permanent scope changes and hold that margin percentage, right. So they are higher margin services, because if you think about it right, we have to train our people in virus protection, the equipment is more costly, the chemicals are more costly, so it justifies the higher margin. So for us, the trick is going to be how do you convert these tag work orders to see them come down and become more permanent, and ultimately, shift our margin mix up on a more permanent basis.
So I think the way we're looking at the phasing over the next six months plus is that, when offices reopen and people are coming back, there will be a sustained tag level, because if you're facility manager, here's the way you're thinking about the reopening. You're saying, I have to blitz the place as people come back, and I don't have the time right now to think more thoughtfully, more prescriptively, about how I'm going to reengineer the longer-term scope. So we think kind of phase one of the opening, you're still see elevated tag levels. And kind of phase two, and whenever that happens, six months from now, 12 months from now, you'll start seeing a drop off the tags and you're going to see the shift toward scope adjustment. So that's the way we're thinking about it.
Sean Eastman -- KeyBanc Capital Markets -- Analyst
Yeah. That's helpful. And I guess the other dynamic to be helpful to get some color on is, there are some scope modulations around this. Any sense at all on how many of those -- or to what magnitude those are going to be permanent changes, in terms of how your clients are approaching office life? And I'm just curious also, how competitors are responding to some of those scope modulation? Has there been any pressure on pricing on just the normal janitorial contracts during the quarter, like outside of tags?
Scott Salmirs -- President and Chief Executive Officer
Yeah. So I think, again, I will say it's early on, but every facility manager that we've talked to, has talked about the fact that they have to have virus protection now, that has a long-lasting scope enhancement. I mean can you imagine just even you going back to your office and you see the building manager and you say, hey what's different about cleaning now and, they are like, well nothing much. That couldn't happen, right. So there has to be permanent change in virus protection. So that's going to happen, and that's going to be higher margin. And I think what we're hearing, too and what we are seeing is, that there has to be more transparency around these cleaning programs with signage, what have you. So this all plays to our benefit for the long term, and why we do think it will be lasting. We've had advantage over our competitors, because if you remember our competitor set are the smaller fragmented companies, and they haven't had the access that we have had to supply chain. Anecdotally, I don't have statistics for you, but I've heard of us picking up work from other clients that we didn't have, because their contractors didn't have access to supply chain. We've always talked about how scale is an advantage for ABM. This pandemic certainly proved that out. Just again, just because of how robust our supply chain was and our ability to train, have the resources, have an advisory panel. So we haven't seen pressure on pricing, right. We haven't -- because everyone's very intent on having this virus protection. But we do think over the long term, this is going to help us, and we did mention in prepared remarks. There is an opportunity to move up our growth levels in B&I, which we've always said was GDP to start knocking on the door of GDP plus. So I just think everything is -- the fundamentals are just pointing up.
Sean Eastman -- KeyBanc Capital Markets -- Analyst
Very helpful. I'll pass it along. Thanks very much.
Scott Salmirs -- President and Chief Executive Officer
Thanks Sean.
Operator
Thank you. Our next question comes from the line of Andrew Wittmann with Baird. Please proceed with your question.
Andrew Wittmann -- Baird -- Analyst
Great. Thanks. There's a lot to impact here and Anthony before I forget, I wanted to say, it has been a pleasure and best of luck.
Anthony Scaglione -- Chief Financial Officer
Thank you.
Andrew Wittmann -- Baird -- Analyst
But yeah, so just here in the prepared remarks, I heard three things that I thought I wanted to drill into a little bit more. I heard first that, obviously tags were great in the quarter. I heard in the prepared remarks, they declined somewhat, but it sounds like you still expect those to stay high, which I guess makes sense. But the second thing I heard, is that you had a $9 million bad debt write-off in the quarter. I wanted to just confirm that that was not excluded from adjusted EPS. Was it actually the quarter would have been better, if not for that? And then I heard that there actually were several significant sounds like margin related actions post the quarter that you mentioned kind of at the end of your prepared remarks, that presumably were not part of the reason the margins were so good in the quarter that you just reported. So those all seem fairly significant to me. I guess the question is, did I understand those things correctly? And then, I guess from there, the question is, the margin performance, particularly in B&I and Education, how sustainable do you think the mix will be to allow you to keep those margins elevated? In other words, is this a fair way to think about in the near term, or do you think you have maybe over earned from very heavy tag work in the quarter? Sorry for the long question.
Anthony Scaglione -- Chief Financial Officer
No, no problem. I'll try to answer the component parts, Andy, and thank you for the kind words at the onset. So from the standpoint of a margin, most of that is going to be driven by the gross margin expansion, as well as some corporate actions that we took, that were unique in a quarter, like the share-based comps, all within our adjusted, and that's going to be offset by the working day, as well as the bad debt. So we did not exclude any of those items to the reported number. And then, there are going to be pluses and minuses across other core categories.
When you think about the actions that we took after the quarter, really those actions [Indecipherable] direct labor because I think one of the things that you saw in the quarter, as our revenue modulated down, we were able to take corresponding actions on the direct labor side, to maintain -- and in some cases, even improve the margin profile at the site level. But those actions offsetting direct labor are really intended to manage expenses across the various unknowns, and to offset certain costs that we anticipate to increase, namely around PPE supply, as well as some overhead costs that are embedded in some parts of the business, that are difficult to take out, like in Aviation, we took out a lot of costs, but there is a certain level of overhead that you have to maintain.
So when you look at that and you look at what -- those are really pre-emptive in nature, Andy, and we expect -- as conditions begin to improve going forward, we will begin to bring back some of those costs, specifically, the reduction in salaries and the furloughs, etc. But we've done that as a pre-emptive measure.
To your question around the margin profile and B&I and T&M, both of those margin profile benefited obviously from tags, and as you can imagine Andy, some of our tags are pass-through margins, very similar to the base contract. But what we saw in the quarter, was what we really -- we're excited about, which were the higher margin tag till that really became a focal point, as the pandemic began to spread. And is one of the reasons why we set up the program around EnhancedClean, because we do believe, this is not something that's going to be temporary. We believe there is a lapping effect, as it relates to the importance of sanitation, the importance of what we do on a daily basis. So we do expect some continuation, as it relates to whether it's going to be tagged or embedded in the contracting at that point, things that we're working on, on a go-forward.
And Scott, I don't know if you want to add anything else?
Scott Salmirs -- President and Chief Executive Officer
No, I think you got it right. The long-term is that, the facilities business has forever changed, and the stuff that we did and we specialize and that was always back of the house, behind the scenes, as front and center, because when people return to their offices, it's a little bit about creating a sense of trust and safety, and the way you're going to -- the way we are going to do this by visibility of the staff. So I think these are all incremental positives for us over the long term.
Andrew Wittmann -- Baird -- Analyst
Great. I just had two other -- I think quicker follow-ups here that I wanted to ask and just so we can understand in greater context. I think typically you guys have said that your tag revenue is around 20%, say of the B&I segments, like that's just kind of a average. I know it's not exactly that. But given the mix shift, was pretty significant here, I was wondering how much of the revenue this quarter was driven by the higher margin tag. I think can you just help us understand exactly how this all unfolded in the quarter a little bit better?
Anthony Scaglione -- Chief Financial Officer
Yeah, I'm not sure where you got your 20% from. Typically our tags, on an enterprise basis average around 4% to 5% on an annualized basis, and that's across all categories, B&I being the largest to benefit, given its concentration on the janitorial side, followed by T&M. What we saw in the quarter, if you would analyze it, probably trending closer to a 7% of overall revenues being tags, and again, those are obviously higher margin to the point I made earlier. For B&I, it led the growth in the quarter. We saw approximately a more than 50% growth in the quarter year-on-year from tag, and then overall, we had significant growth across all of the end markets, but B&I led the way in terms of that growth.
Andrew Wittmann -- Baird -- Analyst
Sorry for misquoting. That's really helpful context and I appreciate that. Scott, the last one that I have is for you and it has to do with the $541 million of new business sold in the first half of the year? Thank you for disclosing that again. I guess two questions on that; one is, how much of that is in Technical Solutions versus in the annuity? I know in the past, you have required -- when you've mentioned this number in the past, it has been, it has combined both businesses, both the annuity businesses, if you will, as well as Technical Solutions. I was hoping you could help us separate that a little bit? And then if you could talk about the other side of this equation, which is retention rates through all of this, and how this could translate into net new business?
Anthony Scaglione -- Chief Financial Officer
Andy, let me take the first part. So on the bookings, really solid story as Scott alluded to. Great growth from a revenue standpoint in the first half. And the story, it's quite interesting and you point out the right point. In 2019, our first half, little over 50% of that bookings was APS, and that really led to the strong backlog, led to where we stand from an overall revenue growth perspective in that industry group and to then [Phonetic] what you saw over the last 12 months, and that was really followed by B&I of roughly 20% in the bookings and then the rest is going to be scattered across all the other industry groups. As you fast forward into this year, close to 50% of the bookings is in B&I. So the story has changed quite a bit year-on-year and you would expect that right, you would expect, given some of the challenges of accessing the sites, given some of the challenges in disruption in some of the end markets that are very conducive to ATS, that you would have expected a slowdown.
That being said, there is still 30% of the total, which is significant, and we are excited about the prospects of ATS on a longer-term basis. But it is the year-over-year dynamic, which really points to the diversification strength of our business model.
And then on the retention, if you wanted to add on retention?
Scott Salmirs -- President and Chief Executive Officer
Yeah, look, retention was really strong in the quarter with 94%. But I think I'm less interested in quarterly retention, I am more interested in longer term and Andy, I can only speak anecdotally about this, but we've been talking to our operators around the country and if I had a nickel for every time a client has said to us, you will never lose our business right after this, because you have to remember you put this in context right, these clients are in crisis, and I think what people forget, is that when COVID first hit, nobody thought we were going to move to work from home, right, everyone was thinking hey, this could be a week, this could be two weeks or we're going to stay in place, you have to do extra virus protection. And we like mobilized so fast, and we had extra labor there. We were doing disinfecting, and we were kind of the cavalry coming to the rescue for a period of time and then, because we had the PPE, because we were able, because of our procurement, to get with the suppliers they needed, I truly believe that this is going to inure to our benefit over time from a retention standpoint, and look, will people have short memories, we are all realists about this too, right? Could there be could there be cost pressures down the road if we move into a recession? Yeah. But I think in terms of our brand, with our clients, I don't know how it has ever been stronger than it is today.
Andrew Wittmann -- Baird -- Analyst
Thank you very much. Good luck.
Anthony Scaglione -- Chief Financial Officer
Thanks.
Operator
Our next question comes from the line of Tim Mulrooney with William Blair. Please proceed with your question.
Tim Mulrooney -- William Blair -- Analyst
Good morning. First, I'd like to say congratulations to Anthony on a very successful tenure at ABM and good luck to you in your future endeavors, Anthony.
Anthony Scaglione -- Chief Financial Officer
Thank you very much Tim. Really means a lot.
Tim Mulrooney -- William Blair -- Analyst
Yeah. Absolutely. So I'd like to ask about your contracts. We've talked about the upside potential from scope modification. But I'm looking for a little bit more color on the flipside of that, the downside with scope modification, which is a good thing, I understand, but I just want to talk about it with respect to your aviation business. Can you just tell us what you're seeing, what clients are doing to reduce the scope of their contracts with you in Aviation? Maybe with an example or two, and if those are temporary or permanent changes. Thank you.
Anthony Scaglione -- Chief Financial Officer
Yeah, I'll take that. So the Aviation, it's really -- it's challenging right now, because aviation is all about volume right and traffic, and it has been so far down. And our revenues actually haven't modulated down as much as the the air traffic has, because airports still have to stay open and the airlines themselves are doing much more virus protection. So I think you're going to see a shift again, no different really than any view of the other industry groups. You're going to just see the shift toward higher -- and for us, higher margin services in the virus protection, because it's going to be part of every end markets protocol, and again we've heard people say that if you had a choice between going to a supermarket or going to an airport and getting on the plane from a pure safety standpoint. You'd rather choose the latter, because of how much they are doing in terms of sanitizing and cleaning at airports and planes. So that's going to just be a lasting change. But revenue absolutely down until passenger traffic picks up. But again, just final point on that, passenger traffic won't pick up until word of mouth starts happening where the people that start flying, go back and tell their friends and family and business associates like I have to tell you, planes are cleaner than ever. I got to tell you, they are really prepared. So -- right. But again, it goes to that same thing Tim, of like, people have to feel safe and secure in their spaces, right and it's -- the new normal, it is not about lobby finishes or how pretty the airport is, it's about the cleaning program and again, how transparent you are about it. How much you're talking about it, the signage, the visibility of our people. It's pretty exciting for us.
Tim Mulrooney -- William Blair -- Analyst
That does sound exciting Scott. So what would be an example of that like with your aviation business? Does that mean employees will be cleaning the planes in between flights, in addition, just going through them quickly, cleaning up the garbage, are they going to be wiping down surfaces? What's the practical application of this enhanced focus on clean, with respect to Aviation?
Scott Salmirs -- President and Chief Executive Officer
Sure. The best way I could describe it to you. And it was interesting for me as I transitioned into this role a few years ago and started really understanding about Aviation. In between flights, when they're cleaning the plane, we would say it was less about actual cleaning and more about logistics, right. You start at the back of the plane. Our people are getting the seats upright, so they're uniformed across. They're are fixing the magazines. They are putting the pillow in place, right. They're putting the trays back. So it was a logistics first, cleaning second. Now, it's going to be about cleaning first, it's going to be about electrostatic spraying. It's like, if you go on to that aircraft and it doesn't feel like you're in an operating room, their brand is going to be deteriorating. So I think the shift has gone again from logistics to cleaning.
Tim Mulrooney -- William Blair -- Analyst
Okay, that's very clear. Thank you for that. That's exactly what I was curious about. Maybe one more question from me, just touching on the competitive environment. We talked to a number of small local providers in different regions around the country, and everybody sounds frankly very busy right now. But in thinking about this longer term, do you think there are market share opportunities, with larger potential customers who may be, want to step up their hygiene programs and switch to a more sophisticated provider like ABM? And if so, what does that sales process look like? What can ABM may be bring to the table that many of the smaller players cannot?
Scott Salmirs -- President and Chief Executive Officer
So let's think about EnhancedClean, which is what we are rallying around, right. So EnhancedClean isn't just virus protection, it's not just taking an electrostatic sprayer and disbursing disinfectant, and I think that's what a lot of our smaller regional companies will do. Here's what EnhancedClean is for us, training our employees, giving them the proper PPE, giving them standard operating practices on how to how to act in a space, giving full robust signage to our facilities partners, that they can display. We put together an advisory panel of external experts, as well as our internal experts from our healthcare division, to opine and certify the program, so that when you walk into an ABM facility and you're doing our enhanced cleaning program, it is going to be literally that sticker on your front door that says, this property is EnhancedClean certified, right. And we're also going to be doing evidence based testing, where we're going to be swabbing after we've done the virus detection, and documenting, improving that we killed the virus.
Like our smaller competitors, they just don't have the resources or the depth or the scale to do that and then also guarantee that they're going to have the supplies in the PPE. So if you are a Fortune 500 company, and you're using a smaller regional company, your brand is going to be based on your cleaning protocols and your holistic program. We haven't seen anybody in the market, have anything near the EnhancedClean program. So we think that's going to allow us to pick up market share, and again during this digital marketing, our salespeople are tracking down leads that are coming through our website. We're putting money around digital outreach. I mean, our smaller competitors, regional competitors, I mean you are probably chuckling now, but you think they have like a digital marketing department with digital outreach. So I think we're going to be attacking all these different platforms.
So I just think, if we play this thing, right, I think it's going to be quite compelling.
Tim Mulrooney -- William Blair -- Analyst
Okay, good color. Thank you, Scott. Good luck, Anthony.
Anthony Scaglione -- Chief Financial Officer
Thanks.
Scott Salmirs -- President and Chief Executive Officer
Thanks.
Operator
Thank you. Our next question comes from the line of David Silver with CL King & Associates. Please proceed with your question.
David Silver -- CL King & Associates -- Analyst
Yeah. Thank you. I have maybe a comment and then one question, and the comment would be related to Anthony's tenure there. And I think back to, I guess, the number of initiatives that the company -- your company has put in place over the last couple of years, and maybe the strategic procurement function that theoretically -- what really didn't exist before. And then the more recent investments and upgraded IT designed to create a national customer database, and then the enhanced HR capabilities. And I don't know, I kind of think everything that came together in a very nice package and I know, Anthony, wouldn't take all the credit for it. But based on your long history of the company, with the relatively recent vintage of those enhanced capabilities. I mean, I really think it came together very nicely, and I wonder if you could have executed it well in the current environment, without all those proactive steps that were put in place over the last couple of years?
Scott Salmirs -- President and Chief Executive Officer
Yes. So I mean I would take that. And Anthony has been just foundational to our success and he is going to really be missed. But that being said, what Anthony would say, is his team, right. He has put together an amazing team of people and these kinds of actions, even if it's something like a financial system or any of these protocols happens across, they don't happen in silos. So we have a really amazing team Dean Chin, who is going to be appointed our Interim CFO, has worked closely with Anthony, and a lot of the things that you mentioned, they've been side by side on. So I'm pre-empting Anthony, but all he would continue to say is that, we just have this amazing team.
David Silver -- CL King & Associates -- Analyst
Okay. Sorry...
Anthony Scaglione -- Chief Financial Officer
I was just going to add, the investments that you alluded to, set us up for success today. So if you think back when we made the investment in HR, we made the investment in sales. A lot of questions around how much were total investments? Why were you making it? And if you recall, there was some consternation, I would say, in terms of our ability to execute. But if you fast forwarded today, and you look at what those investments have allowed us to accomplish in this environment, had we not made those investments and had we not been -- had the fortitude to make those investments, it may have been a different story this quarter. So really proud to Scott's point about the collective team effort across the enterprise, and the ability to execute in good times and in bad times, which has allowed us to be where we are today.
David Silver -- CL King & Associates -- Analyst
Okay. Thank you for that. And now my question and I hope I get it out clearly. But I'm going to maybe do a little pushback on Technical Solutions and the declines that were there and I guess the impairment charge. But I kind of wonder about, whether there is kind of trade-offs right between an elevated level of tag or an elevated higher than traditional amount of effort and budget, committed to the cleaning function? And I'm just wondering whether you think during let's say A, like during the current quarter, some of that elevated tag work came out of the same budget, that normally would have gone to a Technical Solutions project. So in other words, Technical Solutions, you try to cross-sell to the customers that are already performing cleaning services for and this quarter's results indicate that per customer, there is a greater emphasis and more budget dollars committed to cleaning?
Anthony Scaglione -- Chief Financial Officer
Yeah, the way I would answer that is, it's really mixing and matching, it's apples and oranges, because the ATS work is project work and it's capital, it's not operating. So and so that was a real issue and with ATS, the slowdown is, they didn't have access to the facilities, because when the facilities were shut down, they shut them down, and that was really the delay. I think they are starting to see access open up now. And when you think about it, their end market is education. So if you're a school administrator, and you're going through this crisis, the last thing, you're thinking about right now is, giving the technical team the access to shut down the school and shut down the systems. You're just thinking about getting these kids to an e-learning platform. So they were very distracted. Now they're starting to come up for air. And really, the pivot point here and why we think there is so much opportunity in the ATS division, is because school budgets are being cut around the country. Everyone is seeing it in their own community and as the way you get around that, is you save money on energy and it plays right into our sweet spot. So we think ATS is going to have an amazing trajectory, but trading dollars you're talking about capital versus operating, we don't really see that.
David Silver -- CL King & Associates -- Analyst
Okay. I think that's very clear. Thank you. And then last question, with your Enhanced Cleaning program that you're offering and using as a lever to gain market share, does that commitment -- like when a customer agrees to an EnhancedClean type of service. Does it come with a warranty or a guarantee of any kind, or something that in effect might create a liability for your company, in the event that the service doesn't reach expected standards? Anything like that to note about EnhancedClean? Thank you.
Scott Salmirs -- President and Chief Executive Officer
Yeah, that's a great question. The answer is, it doesn't. We're very prescriptive, even in our contract language, that it doesn't. Because this is the one thing, right, nobody knows where it's coming from, and people come to an office, but they could be bringing it with them, and the one thing we know at least for now about -- once you do virus protection, it doesn't last for 30, 60, 90 days, right? So we don't -- we absolutely don't make those guarantees. What we do though, with our EnhancedClean, which is different than everyone else, is that we will do evidence based testing. So we'll go in, we'll do electrostatic spraying, and then we'll test on the spot to show that we've actually killed the virus. But then once we're done, you know that we are -- there is no liability at that point, and clients understand that.
David Silver -- CL King & Associates -- Analyst
Okay, great. Thanks very much.
Scott Salmirs -- President and Chief Executive Officer
You got it.
Operator
Thank you. Our next question comes from line of Tate Sullivan with Maxim Group. Please proceed with your question.
Tate Sullivan -- Maxim Group -- Analyst
Thank you. Thanks for taking my follow-up and thanks for all that detail on the new technology that you can introduce to clients. Do you have to buy different types of equipment going forward or are you pretty well set, for extra demand for EnhancedClean services please?
Scott Salmirs -- President and Chief Executive Officer
Yes. So the equipment that you use for EnhancedClean is very different than what any janitorial provider has now, like an electrostatic spraying machine, which is when you take it around, but you think about like ghostbusters, right. It's literally like a spray-on, and when it sprays, it electrostatically sticks to the surfaces. That kind of equipment is quite expensive, it would be $3,000 or $4,000 per machine, which again, plays to ABM's strength, right, because we have the capital to make these investments and even the disinfectants that we're buying are more expensive. So very-very different. We've pre-ordered multi million dollars worth of equipment now, to make sure that our supply chain is secure. And again with with our scale, it has been amazing, because we get the access that others don't. So yeah, very, very different type of application for the virus detection.
Tate Sullivan -- Maxim Group -- Analyst
Thank you. And one more for me, if I may. In Technical Solutions, have you done historically or do you see incoming client request to study air quality or an improved air quality with your work on HVAC systems?
Scott Salmirs -- President and Chief Executive Officer
Yeah, we do, and that's been in heightened demand. It's not the same level as EnhancedClean, but I don't want to get too technical, but there is such thing as like MERV filters that you can put on your HVAC system, that filter out viruses. People are talking about using UVC light in air-conditioning systems, which has been known to kill virus. But this is such an emerging thing right. We've never seen anything like this before. So a lot of people are studying and sticking their toe in. And so it's early on, but our technical solutions outside of just energy efficiency, people are looking to add things like, again filtration and UVC lighting to kill the virus.
Tate Sullivan -- Maxim Group -- Analyst
Okay. Thank you, Scott.
Scott Salmirs -- President and Chief Executive Officer
Sure.
Operator
Thank you. Ladies and gentlemen, we have time for one more question. Our final question comes from the line of Marc Riddick with Sidoti & Company. Please proceed with your question.
Marc Riddick -- Sidoti & Company -- Analyst
Hi, good morning everyone. Anthony, congratulations. Thank you very much for all your help and assistance over the years, and certainly wish the best in your future endeavors.
Anthony Scaglione -- Chief Financial Officer
Thanks, Mark.
Marc Riddick -- Sidoti & Company -- Analyst
I wanted to sort of focus with my -- two questions really, more along strategy and timing and kind of how certain things came to be? I think in the prepared remarks, you mentioned as far as the cleaning program development beginning in March. Maybe just sort of take us through sort of the timeframe and then when that particular offering began to be put in front of potential customers, and maybe kind of the dynamic in the feedback there. Just wanted to get a little bit more of a scope around kind of -- because there has been certainly a very dynamic time period for everyone, but -- for you guys over the last several weeks. So just wondering, if you could take us through that. Then I have one last follow-up.
Scott Salmirs -- President and Chief Executive Officer
Sure. So the way to think about it is, right, we start hearing words of COVID in February, and in March, it was all about what we were calling our tag works for disinfection. But that wasn't our EnhancedClean program. So wave one of this was, go kill the virus, right. But we didn't have electrostatic machines. We were doing hands -- with hand labor. Right. So we -- one of this was just kill the virus with a disinfectant. And during that wave one, we said, this is long lasting. This has changed the facilities industry forever. We need to develop something more programmatic, and that's where we came up with EnhancedClean, which I said has everything from standard operating procedures to PPE to an advisory panel, this holistic program with signage, that all came together, and really March to mid-April, and we just really started rolling it out over the last couple of weeks, and we haven't even rolled it out yet holistically, we are really focusing on our larger enterprise clients right now. So the evolution went from pure disinfection, reactive, go clean it, to this big holistic offering that's really, really in early, early stages right now.
Marc Riddick -- Sidoti & Company -- Analyst
Okay, that's very, very helpful. So now -- that actually kind of weaves a little bit into the follow-up, which is -- I was wondering if you could spend a little time on the development of the cleaning coalition and kind of how that can came to be; because there seems to be -- this also seems to be very new as far as timing. But I want to get some thoughts as to the development of this, kind of how that came to be and then sort of the goals in that process, because it seems as though, that's going to have the opportunity to be -- kind of drive the conversation, not just for themselves, but for the entire industry. So I was wondering if you could talk about that a bit?
Scott Salmirs -- President and Chief Executive Officer
Yes. That's great. We actually were really proud to have taken the lead on that. This crisis was happening, and all of a sudden we see in Congress, people lobbying on their behalf, that started with the Aviation industry, right? And there was this recognition that we don't have a voice in legislative matters. The industry doesn't have voice in legislative matters. So we've dialed up our five or six bigger competitors if you will, in the marketplace, larger scale cleaning companies said, do you want to get together and pull our voices for what's important going forward, and create a coalition. We will hire a lobbying group, a media publicity group and see if we can get stuff done, because we represent over 1 million workers -- again, that didn't have a voice and as the CARES Act program was coming together, we said, there are things that we have to focus on, like getting priority on supplies.
There was no priority after the healthcare providers, and we will sit there saying hey listen, even healthcare providers can't do their work, unless we get to clean. America can't reopen, unless we're cleaning those spaces in places right. So we put this together and we said we're going to lobby Congress, we're going to talk about basically having our voice heard and literally everyone was really excited about this. And we think that this is something that can have legs past COVID, and we can start having more of a voice in legislative matters. But that's also going to depend on whether or not the things that we're advocating for can get some traction, right, because we're still probably small compared to some of the other bigger lobbying groups. So we're going into this with eyes wide open. But I think we're pretty excited about this initiative of pooling what's important to the industry.
Anthony Scaglione -- Chief Financial Officer
And I would add, Marc, if you think about the front-line and having them understand the precautions we're taking, and you know some of this is also marketing, because as you know, what was a headwind for us for the last couple of years, in terms of the Labor Pool Act, the labor pool recruiting, where unemployment is and where we see opportunity from a labor standpoint. That headwind goes away. Doesn't mean that necessarily costs associated with the per hour charge necessarily dissipate, but the increase in costs that we saw -- we see that as no longer of a headwind, and potentially a tailwind going forward.
Marc Riddick -- Sidoti & Company -- Analyst
I greatly appreciate it. Thank you very much.
Operator
Thank you. Ladies and gentlemen, that concludes our time allowed for questions, I'll turn the floor back to management for any final comments.
Scott Salmirs -- President and Chief Executive Officer
Okay. I just want to -- first of all, thanks everyone for joining. But before I hang up,. I just have to tell you. I said in my remarks prepared remarks, I just can't thank our team enough for everything they've done through this crisis and you think about what we do. Our teams are on the frontline fighting the virus right. It's the fire with the firefighters and it's just, it's just -- I just don't have the words to articulate what our folks have done and accomplished on behalf of our clients. And safety is the most important thing, and our people have stayed safe, and we've given them the training and they feel good about what they're doing because we are actually helping society. It has just been phenomenal.
And again, one last shot out to Anthony, he has been amazing partner to me over the last five years. We're going to miss him, but excited about his next venture, and it is going to be -- where he's going, he will make a foundational change there as well. So really excited for him. Look forward to updating you all in Q3. I think we're going to have a lot more insight to what's going on with this pandemic over the next three months. So we'll chat then. Stay safe and don't let your guard down, it's not over yet, everybody, thanks so much.
Operator
[Operator Closing Remarks].
Duration: 73 minutes
Call participants:
Susie A. Kim -- Investor Relations & Treasury
Scott Salmirs -- President and Chief Executive Officer
Anthony Scaglione -- Chief Financial Officer
Sean Eastman -- KeyBanc Capital Markets -- Analyst
Andrew Wittmann -- Baird -- Analyst
Tim Mulrooney -- William Blair -- Analyst
David Silver -- CL King & Associates -- Analyst
Tate Sullivan -- Maxim Group -- Analyst
Marc Riddick -- Sidoti & Company -- Analyst
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Revised fixed charge coverage ratios that reflect the potential for additional borrowings and associated interest, and provisions that protect our Board's ability to continue ABM's long-standing dividend policy. ABM Industries Inc (NYSE: ABM) Q2 2020 Earnings Call Jun 18, 2020, 8:30 a.m. ET Contents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks: Operator Greetings and welcome to the ABM Industries Second Quarter 2020 Earnings Call. | Duration: 73 minutes Call participants: Susie A. Kim -- Investor Relations & Treasury Scott Salmirs -- President and Chief Executive Officer Anthony Scaglione -- Chief Financial Officer Sean Eastman -- KeyBanc Capital Markets -- Analyst Andrew Wittmann -- Baird -- Analyst Tim Mulrooney -- William Blair -- Analyst David Silver -- CL King & Associates -- Analyst Tate Sullivan -- Maxim Group -- Analyst Marc Riddick -- Sidoti & Company -- Analyst More ABM analysis All earnings call transcripts {%sfr%} 10 stocks we like better than ABM Industries When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. ABM Industries Inc (NYSE: ABM) Q2 2020 Earnings Call Jun 18, 2020, 8:30 a.m. ET Contents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks: Operator Greetings and welcome to the ABM Industries Second Quarter 2020 Earnings Call. | Duration: 73 minutes Call participants: Susie A. Kim -- Investor Relations & Treasury Scott Salmirs -- President and Chief Executive Officer Anthony Scaglione -- Chief Financial Officer Sean Eastman -- KeyBanc Capital Markets -- Analyst Andrew Wittmann -- Baird -- Analyst Tim Mulrooney -- William Blair -- Analyst David Silver -- CL King & Associates -- Analyst Tate Sullivan -- Maxim Group -- Analyst Marc Riddick -- Sidoti & Company -- Analyst More ABM analysis All earnings call transcripts {%sfr%} 10 stocks we like better than ABM Industries When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. ABM Industries Inc (NYSE: ABM) Q2 2020 Earnings Call Jun 18, 2020, 8:30 a.m. ET Contents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks: Operator Greetings and welcome to the ABM Industries Second Quarter 2020 Earnings Call. | Duration: 73 minutes Call participants: Susie A. Kim -- Investor Relations & Treasury Scott Salmirs -- President and Chief Executive Officer Anthony Scaglione -- Chief Financial Officer Sean Eastman -- KeyBanc Capital Markets -- Analyst Andrew Wittmann -- Baird -- Analyst Tim Mulrooney -- William Blair -- Analyst David Silver -- CL King & Associates -- Analyst Tate Sullivan -- Maxim Group -- Analyst Marc Riddick -- Sidoti & Company -- Analyst More ABM analysis All earnings call transcripts {%sfr%} 10 stocks we like better than ABM Industries When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. ABM Industries Inc (NYSE: ABM) Q2 2020 Earnings Call Jun 18, 2020, 8:30 a.m. ET Contents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks: Operator Greetings and welcome to the ABM Industries Second Quarter 2020 Earnings Call. |
29360.0 | 2020-06-17 00:00:00 UTC | ABM Industries Q2 Results Beat Street View | ABM | https://www.nasdaq.com/articles/abm-industries-q2-results-beat-street-view-2020-06-17 | nan | nan | (RTTNews) - Shares of ABM Industries Inc. (ABM) jumped 9% on Wednesday extended trading session after the company's second-quarter results trumped Wall Street estimates.
Net loss for the second quarter was $136.8 million or $2.05 per share, compared to net income of $29.7 million or $0.45 per share. On an adjusted basis, earnings were $0.60 per share, up from $0.47 per share last year.
Revenues dropped 6.2% to $1.496 billion from $1.594 billion last year, "reflecting ongoing impact of COVID-19 operating environment."
Analysts polled by Thomson Reuters estimated earnings of $0.29 per share on revenues of $1.49 billion.
On March 26, 2020, the company withdrew its previously issued fiscal 2020 guidance outlook due to the extraordinary and evolving nature of the COVID-19 pandemic.
Separately, ABM (ABM), announced the resignation of Chief Financial Officer Anthony Scaglione. The company has appointed Dean Chin, ABM's current Senior Vice President, Chief Accounting Officer and Corporate Controller, as interim Chief Financial Officer, effective July 1, 2020.
Scaglione has held this role since 2015 after serving in various senior executive positions at the company from 2009. Scaglione, who is leaving the company to pursue another career opportunity, will remain for a period of time to ensure a smooth transition.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - Shares of ABM Industries Inc. (ABM) jumped 9% on Wednesday extended trading session after the company's second-quarter results trumped Wall Street estimates. Separately, ABM (ABM), announced the resignation of Chief Financial Officer Anthony Scaglione. The company has appointed Dean Chin, ABM's current Senior Vice President, Chief Accounting Officer and Corporate Controller, as interim Chief Financial Officer, effective July 1, 2020. | Separately, ABM (ABM), announced the resignation of Chief Financial Officer Anthony Scaglione. The company has appointed Dean Chin, ABM's current Senior Vice President, Chief Accounting Officer and Corporate Controller, as interim Chief Financial Officer, effective July 1, 2020. (RTTNews) - Shares of ABM Industries Inc. (ABM) jumped 9% on Wednesday extended trading session after the company's second-quarter results trumped Wall Street estimates. | (RTTNews) - Shares of ABM Industries Inc. (ABM) jumped 9% on Wednesday extended trading session after the company's second-quarter results trumped Wall Street estimates. The company has appointed Dean Chin, ABM's current Senior Vice President, Chief Accounting Officer and Corporate Controller, as interim Chief Financial Officer, effective July 1, 2020. Separately, ABM (ABM), announced the resignation of Chief Financial Officer Anthony Scaglione. | Separately, ABM (ABM), announced the resignation of Chief Financial Officer Anthony Scaglione. (RTTNews) - Shares of ABM Industries Inc. (ABM) jumped 9% on Wednesday extended trading session after the company's second-quarter results trumped Wall Street estimates. The company has appointed Dean Chin, ABM's current Senior Vice President, Chief Accounting Officer and Corporate Controller, as interim Chief Financial Officer, effective July 1, 2020. |
29361.0 | 2020-06-05 00:00:00 UTC | ABM Crosses Above Key Moving Average Level | ABM | https://www.nasdaq.com/articles/abm-crosses-above-key-moving-average-level-2020-06-05 | nan | nan | In trading on Friday, shares of ABM Industries, Inc. (Symbol: ABM) crossed above their 200 day moving average of $34.97, changing hands as high as $36.73 per share. ABM Industries, Inc. shares are currently trading up about 6.3% on the day. The chart below shows the one year performance of ABM shares, versus its 200 day moving average:
Looking at the chart above, ABM's low point in its 52 week range is $19.7906 per share, with $42.67 as the 52 week high point — that compares with a last trade of $36.62.
Click here to find out which 9 other dividend stocks recently crossed above their 200 day moving average »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In trading on Friday, shares of ABM Industries, Inc. (Symbol: ABM) crossed above their 200 day moving average of $34.97, changing hands as high as $36.73 per share. The chart below shows the one year performance of ABM shares, versus its 200 day moving average: Looking at the chart above, ABM's low point in its 52 week range is $19.7906 per share, with $42.67 as the 52 week high point — that compares with a last trade of $36.62. ABM Industries, Inc. shares are currently trading up about 6.3% on the day. | In trading on Friday, shares of ABM Industries, Inc. (Symbol: ABM) crossed above their 200 day moving average of $34.97, changing hands as high as $36.73 per share. The chart below shows the one year performance of ABM shares, versus its 200 day moving average: Looking at the chart above, ABM's low point in its 52 week range is $19.7906 per share, with $42.67 as the 52 week high point — that compares with a last trade of $36.62. ABM Industries, Inc. shares are currently trading up about 6.3% on the day. | In trading on Friday, shares of ABM Industries, Inc. (Symbol: ABM) crossed above their 200 day moving average of $34.97, changing hands as high as $36.73 per share. The chart below shows the one year performance of ABM shares, versus its 200 day moving average: Looking at the chart above, ABM's low point in its 52 week range is $19.7906 per share, with $42.67 as the 52 week high point — that compares with a last trade of $36.62. ABM Industries, Inc. shares are currently trading up about 6.3% on the day. | In trading on Friday, shares of ABM Industries, Inc. (Symbol: ABM) crossed above their 200 day moving average of $34.97, changing hands as high as $36.73 per share. ABM Industries, Inc. shares are currently trading up about 6.3% on the day. The chart below shows the one year performance of ABM shares, versus its 200 day moving average: Looking at the chart above, ABM's low point in its 52 week range is $19.7906 per share, with $42.67 as the 52 week high point — that compares with a last trade of $36.62. |
29362.0 | 2020-05-30 00:00:00 UTC | Validea John Neff Strategy Daily Upgrade Report - 5/30/2020 | ABM | https://www.nasdaq.com/articles/validea-john-neff-strategy-daily-upgrade-report-5-30-2020-2020-05-30 | nan | nan | The following are today's upgrades for Validea's Low PE Investor model based on the published strategy of John Neff. This strategy looks for firms with persistent earnings growth that trade at a discount relative to their earnings growth and dividend yield.
ABM INDUSTRIES, INC. (ABM) is a mid-cap value stock in the Business Services industry. The rating according to our strategy based on John Neff changed from 42% to 81% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: ABM Industries Incorporated is a provider of integrated facility solutions. The Company operates through five segments: Janitorial, Facility Services, Parking, Building & Energy Solutions, and other. Its Janitorial segment provides a range of cleaning services for commercial office buildings, data centers, educational institutions, government buildings, health facilities, industrial buildings, retail stores, sport event facilities and transportation hubs. Its Facility Services segment provides onsite mechanical engineering and technical services and solutions relating to a range of facilities and infrastructure systems. Its Parking segment provides parking and transportation services. Its Building & Energy Solutions segment provides energy solutions; electrical; heating, ventilation and air conditioning; lighting, and other general maintenance and repair services for clients. Its other segment provides facility solutions to airlines and airports.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E RATIO: PASS
EPS GROWTH: PASS
FUTURE EPS GROWTH: FAIL
SALES GROWTH: PASS
TOTAL RETURN/PE: PASS
FREE CASH FLOW: PASS
EPS PERSISTENCE: PASS
Full Guru Analysis for ABM
Full Factor Report for ABM
MOBIL'NYE TELESISTEMY PAO (ADR) (MBT) is a mid-cap value stock in the Communications Services industry. The rating according to our strategy based on John Neff changed from 58% to 77% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Mobil'nye Telesistemy PAO is a Russia-based provider of telecommunications services. The Company provides mobile and fixed-line voice and data telecommunications services, including data transfer, broadband, pay-television (pay-TV) and various value-added services, as well as selling equipment and accessories. The Company operates through segments, which include Russia convergent, Moscow fixed line and Ukraine. Its Russia Convergent segment includes mobile and fixed-line operations, which encompasses services rendered to customers across regions of Russia, including voice and data services, transmission, broadband, pay-TV and other value-added services. Its Moscow fixed-line segment includes fixed-line operations carried out in Moscow by the Company's subsidiary MGTS. Its Ukraine segment includes mobile and fixed-line operations carried out across multiple regions of Ukraine. The Company also offers software solutions, such as LiteBox, a cloud-based tool for online cash operations.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E RATIO: PASS
EPS GROWTH: FAIL
FUTURE EPS GROWTH: PASS
SALES GROWTH: PASS
TOTAL RETURN/PE: PASS
FREE CASH FLOW: FAIL
EPS PERSISTENCE: FAIL
Full Guru Analysis for MBT
Full Factor Report for MBT
STORE CAPITAL CORP (STOR) is a mid-cap growth stock in the Real Estate Operations industry. The rating according to our strategy based on John Neff changed from 60% to 79% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: STORE Capital Corporation is an internally managed net-lease real estate investment trust. The Company is engaged in the acquisition, investment and management of single tenant operational real estate (STORE) properties. As of December 31, 2016, the Company owned a portfolio that consisted of investments in 1,660 property locations operated by 360 customers across 48 states. Its customers operate across a range of industries within the service, retail and manufacturing sectors of the United States economy, with restaurants, early childhood education centers, movie theaters, health clubs and furniture stores. The Company's portfolio includes investments in approximately 1,330 property locations operated by over 300 customers across approximately 50 states. The Company provides real estate financing solutions principally to businesses that own STORE properties and operate within the broad-based service, retail and industrial sectors of the United States economy.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E RATIO: PASS
EPS GROWTH: PASS
FUTURE EPS GROWTH: FAIL
SALES GROWTH: PASS
TOTAL RETURN/PE: PASS
FREE CASH FLOW: FAIL
EPS PERSISTENCE: PASS
Full Guru Analysis for STOR
Full Factor Report for STOR
More details on Validea's John Neff strategy
About John Neff: While known as the manager with whom many top managers entrusted their own money, Neff was far from the smooth-talking, high-profile Wall Streeter you might expect. He was mild-mannered and low-key, and the same might be said of the Windsor Fund that he managed for more than three decades. In fact, Neff himself described the fund as "relatively prosaic, dull, [and] conservative." There was nothing dull about his results, however. From 1964 to 1995, Neff guided Windsor to a 13.7 percent average annual return, easily outpacing the S&P 500's 10.6 percent return during that time. That 3.1 percentage point difference is huge over time -- a $10,000 investment in Windsor (with dividends reinvested) at the start of Neff's tenure would have ended up as more than $564,000 by the time he retired, more than twice what the same investment in the S&P would have yielded (about $233,000). Considering the length of his tenure, that track record may be the best ever for a manager of such a large fund.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | ABM INDUSTRIES, INC. (ABM) is a mid-cap value stock in the Business Services industry. Company Description: ABM Industries Incorporated is a provider of integrated facility solutions. Full Guru Analysis for ABM Full Factor Report for ABM MOBIL'NYE TELESISTEMY PAO (ADR) (MBT) is a mid-cap value stock in the Communications Services industry. | ABM INDUSTRIES, INC. (ABM) is a mid-cap value stock in the Business Services industry. Company Description: ABM Industries Incorporated is a provider of integrated facility solutions. Full Guru Analysis for ABM Full Factor Report for ABM MOBIL'NYE TELESISTEMY PAO (ADR) (MBT) is a mid-cap value stock in the Communications Services industry. | ABM INDUSTRIES, INC. (ABM) is a mid-cap value stock in the Business Services industry. Company Description: ABM Industries Incorporated is a provider of integrated facility solutions. Full Guru Analysis for ABM Full Factor Report for ABM MOBIL'NYE TELESISTEMY PAO (ADR) (MBT) is a mid-cap value stock in the Communications Services industry. | Company Description: ABM Industries Incorporated is a provider of integrated facility solutions. ABM INDUSTRIES, INC. (ABM) is a mid-cap value stock in the Business Services industry. Full Guru Analysis for ABM Full Factor Report for ABM MOBIL'NYE TELESISTEMY PAO (ADR) (MBT) is a mid-cap value stock in the Communications Services industry. |
29363.0 | 2020-04-29 00:00:00 UTC | ABM Crosses Above Key Moving Average Level | ABM | https://www.nasdaq.com/articles/abm-crosses-above-key-moving-average-level-2020-04-29 | nan | nan | In trading on Wednesday, shares of ABM Industries, Inc. (Symbol: ABM) crossed above their 200 day moving average of $36.02, changing hands as high as $36.50 per share. ABM Industries, Inc. shares are currently trading up about 6.4% on the day. The chart below shows the one year performance of ABM shares, versus its 200 day moving average:
Looking at the chart above, ABM's low point in its 52 week range is $19.7906 per share, with $42.67 as the 52 week high point — that compares with a last trade of $36.30.
Click here to find out which 9 other dividend stocks recently crossed above their 200 day moving average »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In trading on Wednesday, shares of ABM Industries, Inc. (Symbol: ABM) crossed above their 200 day moving average of $36.02, changing hands as high as $36.50 per share. The chart below shows the one year performance of ABM shares, versus its 200 day moving average: Looking at the chart above, ABM's low point in its 52 week range is $19.7906 per share, with $42.67 as the 52 week high point — that compares with a last trade of $36.30. ABM Industries, Inc. shares are currently trading up about 6.4% on the day. | In trading on Wednesday, shares of ABM Industries, Inc. (Symbol: ABM) crossed above their 200 day moving average of $36.02, changing hands as high as $36.50 per share. The chart below shows the one year performance of ABM shares, versus its 200 day moving average: Looking at the chart above, ABM's low point in its 52 week range is $19.7906 per share, with $42.67 as the 52 week high point — that compares with a last trade of $36.30. ABM Industries, Inc. shares are currently trading up about 6.4% on the day. | In trading on Wednesday, shares of ABM Industries, Inc. (Symbol: ABM) crossed above their 200 day moving average of $36.02, changing hands as high as $36.50 per share. The chart below shows the one year performance of ABM shares, versus its 200 day moving average: Looking at the chart above, ABM's low point in its 52 week range is $19.7906 per share, with $42.67 as the 52 week high point — that compares with a last trade of $36.30. ABM Industries, Inc. shares are currently trading up about 6.4% on the day. | In trading on Wednesday, shares of ABM Industries, Inc. (Symbol: ABM) crossed above their 200 day moving average of $36.02, changing hands as high as $36.50 per share. ABM Industries, Inc. shares are currently trading up about 6.4% on the day. The chart below shows the one year performance of ABM shares, versus its 200 day moving average: Looking at the chart above, ABM's low point in its 52 week range is $19.7906 per share, with $42.67 as the 52 week high point — that compares with a last trade of $36.30. |
29364.0 | 2020-03-10 00:00:00 UTC | Analysts See 24% Upside For The Holdings of TMDV | ABM | https://www.nasdaq.com/articles/analysts-see-24-upside-for-the-holdings-of-tmdv-2020-03-10 | nan | nan | Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the ProShares ProShares Russell U.S. Dividend Growers ETF (Symbol: TMDV), we found that the implied analyst target price for the ETF based upon its underlying holdings is $43.24 per unit.
With TMDV trading at a recent price near $34.96 per unit, that means that analysts see 23.68% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of TMDV's underlying holdings with notable upside to their analyst target prices are Dover Corp (Symbol: DOV), ABM Industries, Inc. (Symbol: ABM), and S&P Global Inc (Symbol: SPGI). Although DOV has traded at a recent price of $93.75/share, the average analyst target is 28.91% higher at $120.86/share. Similarly, ABM has 26.82% upside from the recent share price of $31.54 if the average analyst target price of $40.00/share is reached, and analysts on average are expecting SPGI to reach a target price of $306.00/share, which is 26.18% above the recent price of $242.51. Below is a twelve month price history chart comparing the stock performance of DOV, ABM, and SPGI:
Below is a summary table of the current analyst target prices discussed above:
NAME SYMBOL RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET
ProShares ProShares Russell U.S. Dividend Growers ETF TMDV $34.96 $43.24 23.68%
Dover Corp DOV $93.75 $120.86 28.91%
ABM Industries, Inc. ABM $31.54 $40.00 26.82%
S&P Global Inc SPGI $242.51 $306.00 26.18%
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
10 ETFs With Most Upside To Analyst Targets »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | ProShares ProShares Russell U.S. Dividend Growers ETF TMDV $34.96 $43.24 23.68% Dover Corp DOV $93.75 $120.86 28.91% ABM Industries, Inc. ABM $31.54 $40.00 26.82% S&P Global Inc SPGI $242.51 $306.00 26.18% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of TMDV's underlying holdings with notable upside to their analyst target prices are Dover Corp (Symbol: DOV), ABM Industries, Inc. (Symbol: ABM), and S&P Global Inc (Symbol: SPGI). Similarly, ABM has 26.82% upside from the recent share price of $31.54 if the average analyst target price of $40.00/share is reached, and analysts on average are expecting SPGI to reach a target price of $306.00/share, which is 26.18% above the recent price of $242.51. | Three of TMDV's underlying holdings with notable upside to their analyst target prices are Dover Corp (Symbol: DOV), ABM Industries, Inc. (Symbol: ABM), and S&P Global Inc (Symbol: SPGI). ProShares ProShares Russell U.S. Dividend Growers ETF TMDV $34.96 $43.24 23.68% Dover Corp DOV $93.75 $120.86 28.91% ABM Industries, Inc. ABM $31.54 $40.00 26.82% S&P Global Inc SPGI $242.51 $306.00 26.18% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Similarly, ABM has 26.82% upside from the recent share price of $31.54 if the average analyst target price of $40.00/share is reached, and analysts on average are expecting SPGI to reach a target price of $306.00/share, which is 26.18% above the recent price of $242.51. | Similarly, ABM has 26.82% upside from the recent share price of $31.54 if the average analyst target price of $40.00/share is reached, and analysts on average are expecting SPGI to reach a target price of $306.00/share, which is 26.18% above the recent price of $242.51. Three of TMDV's underlying holdings with notable upside to their analyst target prices are Dover Corp (Symbol: DOV), ABM Industries, Inc. (Symbol: ABM), and S&P Global Inc (Symbol: SPGI). Below is a twelve month price history chart comparing the stock performance of DOV, ABM, and SPGI: Below is a summary table of the current analyst target prices discussed above: | ProShares ProShares Russell U.S. Dividend Growers ETF TMDV $34.96 $43.24 23.68% Dover Corp DOV $93.75 $120.86 28.91% ABM Industries, Inc. ABM $31.54 $40.00 26.82% S&P Global Inc SPGI $242.51 $306.00 26.18% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of TMDV's underlying holdings with notable upside to their analyst target prices are Dover Corp (Symbol: DOV), ABM Industries, Inc. (Symbol: ABM), and S&P Global Inc (Symbol: SPGI). Similarly, ABM has 26.82% upside from the recent share price of $31.54 if the average analyst target price of $40.00/share is reached, and analysts on average are expecting SPGI to reach a target price of $306.00/share, which is 26.18% above the recent price of $242.51. |
29365.0 | 2020-03-05 00:00:00 UTC | ABM Industries Inc (ABM) Q1 2020 Earnings Call Transcript | ABM | https://www.nasdaq.com/articles/abm-industries-inc-abm-q1-2020-earnings-call-transcript-2020-03-05 | nan | nan | Image source: The Motley Fool.
ABM Industries Inc (NYSE: ABM)
Q1 2020 Earnings Call
Mar 5, 2020, 8:30 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Greetings, and welcome to the ABM Industries, Inc. Quarter One 2020 Earnings Call. [Operator Instructions]
I will now turn the conference over to your host, Treasurer and Head of Investor Relations, Susie Kim.
Susie A. Kim -- Vice President-Investor Relations & Treasurer
Thank you all for joining us this morning. With us today are Scott Salmirs, our President and Chief Executive Officer and Anthony Scaglione, Executive Vice President and Chief Financial Officer. We issued our press release yesterday afternoon announcing our first quarter of fiscal 2020 financial results. A copy of this release and an accompanying slide presentation can be found on our corporate website
Before we begin, I would like to remind you that our call and presentation today contain predictions, estimates and other forward-looking statements. Our use of the words estimate, expect, and similar expressions are intended to identify these statements. These statements represent our current judgment of what the future holds. While we believe them to be reasonable, these statements are subject to risks and uncertainties that could cause our actual results to differ materially. These factors are described in the slide that accompanies our presentation, as well as in our filings with the SEC. During the course of this call, certain non-GAAP financial information will be presented. A reconciliation of those numbers to GAAP financial measures is available at the end of the presentation and on the company's website under the Investor tab.
I would now like to turn the call over to Scott.
Scott Salmirs -- President and Chief Executive Officer
Good morning, and thanks Susie. And thank you all for joining us today to discuss our results for the first quarter of the fiscal new year. As stated in our press release yesterday afternoon, we are off to an encouraging start to the new year. Total revenue, which is now all driven organically, was up slightly at $1.6 billion. Our GAAP continuing EPS was $0.41 per share or $0.39 per share on an adjusted basis. Adjusted EBITDA margin held at 4.3%. All of this enabled us to achieve leverage below 3 times for the second consecutive quarter.
As always, our results were anchored by our operations. While our performance on the top-line was impacted by the lower pull through of revenue as a result of our selective approach to retention last year, we are experiencing a corresponding positive impact on our operating segment profit given our mix now includes the loss of certain lower margin contracts. Our Business & Industry segment had another good quarter as our scale continues to strengthen our positioning with national accounts. Also driving B&I's performance was an increase in activity with our sports and entertainment division as we helped our clients put on some exciting events. We're so proud that we had up to 300 ABM team members at Levi's Stadium throughout the San Francisco 49ers' incredible season and post-season run.
Our Technical Solutions group saw strong growth on the heels of our robust pipeline from last year and we continue to see demand for energy and sustainability-related projects. Both operationally and financially, our results would not have been possible without our team members who keep delivering across the board. As we've discussed, our goals for this fiscal year involve business investments that will enable our team to accelerate growth and productivity and we're striving to become a more data-driven company to enhance our ability to help our clients gain insights into how to make their facilities more efficient.
Optimizing revenue management has been a key theme for us since we began prioritizing growth with our 2020 Vision strategy. We've built a powerful sales force with the professionalized program that has led us to now target $1 billion in new sales annually. And while we do not disclose our new sales bookings until the second quarter, I'm pleased that we've kept the momentum going into 2020 by meeting our first quarter internal expectations.
Another cornerstone of our sales approach is cross-selling. Internally, we've put a spotlight on cross-selling across all industry groups. We've developed new training and tools to prepare our teams for finding ways to meet the needs of clients through our ability to self-perform and subcontract a wide range of solutions. It's an expanding part of our revenue base, but not anywhere near its potential, which is very exciting.
We've been actively recruiting sales people. And while we were net growing our team, the hiring environment remains highly competitive. As you know, since 2018, we've been adding human resource recruiters throughout our entire platform, which has been critical to our success. Each department in segment now has permanent dedicated recruiters to fill vacancies more productively.
Our growth is also dedicated to client retention. We ended last year with retention lower than our historical norm as we navigated rising wages and the necessity for contract escalations. We pursued discerning rebid and pricing strategy to ensure we are making responsible decisions for the long-term. As a result, retention landed at 90% for fiscal 2019, down from the 92% to 93% range, which is indicative of a normalized environment.
During this fiscal year, we are standing up the new strategic account management team to focus on client retention and we believe this will have a foundational effect over the long-term. And while we saw a sequential improvement in retention during the first quarter, I want to reiterate, the labor markets and associated wage escalations and acceleration have not eased and we will continue to pursue responsible price escalations where appropriate.
One of the keys to minimizing the impact of this labor market is to be as efficient as possible on how we schedule and deploy our team members in the field. The next phase of our transformation will include channeling even greater resources to improving labor management through process and technology. EPAY, the upgraded cloud-based time and attendance system we implemented last year is deepening our ability to manage our distributed workforce. Data is now being incorporated into our weekly operating reviews and we are driving productivity improvements. It's been one of our primary factors in our ability to achieve margin stability in this market. And of course we are committed to reinforcing our team members as our competitive advantage.
Our mission is to make a difference every person every day and we take this very seriously, and it starts with our people. You've heard us talk about investing in talent with our salespeople and recruiters to improve speed to hire and resources toward training and onboarding. We're also investing in the team member experience to improve employee retention and attract higher quality talent. We are igniting a number of programs around team member engagement and are energized about how we will continue to evolve on the talent front.
Also, part of our evolution is the modernization of our IT infrastructure, which began in earnest in the last 18 months. As part of our IT roadmap, we initiated a phased approach to our Fusion ERP implementation in 2019. After launching in the U.K. earlier last year, we went live in Canada this past December. It's been three months and I'm pleased that we are now closing our books with our new financial system for both the U.K. and Canada.
Given the complexities of the systems that speak to our Fusion,ERP like our HR System and EPAY, our priority is to make certain we are fully tested and trained to be ready for a U.S. rollout. The deployment in the U.S. is complicated and we've increased our investment and organizational change in management, project teams and consultancy to safeguard continuity and conduct readiness assessments. Our target for the U.S. remains calendar 2020, but we will adjust our timeline to early 2021 if it's sensible for a successful implementation. The key is to ensure that our clients aren't affected once we make the switch.
Looking ahead, we are reiterating our guidance for the year, given our solid first quarter performance. That being said, it's important that we address the global crisis surrounding coronavirus, COVID-19. At ABM, we have no direct exposure in countries like China or other Level 2 geographies and our business has not seen any real impact yet from COVID-19. But it would be imprudent if we didn't consider all aspects of our business and the potential for any future effects. Our first priority is the safety of our 140,000 employees who serve at thousands of job sites across the U.S. and U.K. including airports and healthcare facilities. We are monitoring where cases have been reported and following the safety protocols of the World Health Organization and the Center for Disease Control.
Based on the current market reaction, the business scenario seem endless. On one hand, travel slowdowns, supply chain disruptions and office closures could have ramifications on business conditions, market demand and client decisions. On the other hand, we could see an increase in demand as clients enforce more preventative sanitizing measures. So for us it's still early and we haven't seen any meaningful impact to our business at this point. We're staying close to our clients and we will ensure that we are working as solution partners as events unfold.
Times like these underscore how our underlying business fundamentals are sound and resilient. Remember, we're predominantly domestic with a highly diversified portfolio that has proven to be more stable than other sectors. We remain well positioned to pursue growth and profitability throughout our service mix and scale. And with our current leverage profile, we have an attractive capital structure that allows us to be opportunistic with share repurchases and M&A as well. ABM stands as proud today as we ever have, and we are confident that we've built a business model, a strategy and a team to win. I want to thank our entire organization to a strong start to the new fiscal year and we look forward to continuing our execution for the remainder of fiscal 2020.
With that, let me turn the call over to Anthony.
Anthony Scaglione -- Chief Financial Officer
Thanks, Scott, and good morning, everyone. Before I dive into the quarter, I want to remind everyone that our results will be entirely organic. If you recall, we instituted ASC 606 and 853 last year that caused some adjustments between total revenue and our organic revenue calculation. We have comped those adjustments and our revenue base should be considered all organic at this time. On November 1, we also adopted ASC Topic 842 regarding lease accounting. This adoption primarily impacted the balance sheet, grossing up both assets and liabilities. The adoption had no material impact on net income or cash flow.
Now on to our results. Total revenues for the quarter were $1.6 billion, up 0.3%. Revenue was primarily driven by the Technical Solutions segment, which was partially offset by lower aviation and Business & Industry segment revenue, primarily as a result of lower fiscal 2019 retention. On a GAAP basis, our income from continuing operations was $27.9 million or $0.41 per diluted share compared to $13 million or $0.20 last year. The significant increase versus last year was primarily driven by favorable development and prior year self-insurance adjustment. We saw a $6.6 million benefit this year compared to a negative impact of $5 million in the first quarter of fiscal 2019.
On an adjusted basis, income from continuing operations for the quarter increased to $26.2 million or $0.39 per diluted share compared to $20.8 million or $0.31 last year. On a GAAP and adjusted basis, income from continuing operations for the quarter reflect a higher margin mix across most of our segments, led by B&I. We also saw a lower amortization as well as lower interest expense. These results were partially offset by our ongoing infrastructure investments in sales, HR and IT. During the quarter, we generated adjusted EBITDA of approximately $68.8 million for a margin rate of 4.3%.
I will now discuss our segment results. Keep in mind, as we expected, revenue across the majority of our segments was impacted by our retention rate in 2019, a concept we talked about heavily throughout last year. B&I had another strong quarter performance, particularly in light of their good results last year. While revenues of $821 million were slightly lower than last year, these results exceeded our internal expectations.
We expanded strategically with higher margin national accounts and also benefited from some delayed losses. This led to operating profit expansion to $38.2 million for a margin rate of 4.7% for the quarter compared to 4.4% last year. In addition to the mix being favorable overall, we also continue to see positive impact of our decision to integrate the healthcare division primarily into the segments.
We are seeing a variety of improvements across both our acute and non-acute business in areas such as pricing, contract extensions and productivity as we leverage the B&I branch network. Sports and entertainment also saw margin growth for good activity during the quarter. Aviation reported revenues of $239 million versus $252 million last year.
Operating profit for the quarter was $5.6 million versus $3.9 million last year. This is mix, including the exit of a large unprofitable contract in the U.K., along with higher margins new wins at airports drove operating profit. As with our other segments, we are reiterating our full year expectations for Aviation, but we are being particularly vigilant with this segment given its vulnerability to the broader coronavirus concerns occurring in the macro operating environment.
Technology & Manufacturing reported revenues of $234 million with an operating profit of $16.7 million for a margin rate of 7.1%. While we saw a slight uptick in reserves due to the longer payment cycles from certain clients, T&M met our expectation due to wins across all revenue channels, including high-tech and food production facilities.
Revenue in Education was essentially flat at $208 million with operating profit $11.2 million versus $10.3 million last year. Lower amortization offset the year-over-year increase in labor and related expenses that we continue to face as a result of the ongoing labor environment. Currently, our teams are laser-focused on the upcoming sailing season as we pursue new business, as well as the expansions and price escalations.
Finally, Technical Solutions reported revenues of $142 million, up 22.4% versus last year as our record performance in 2019 provided a strong tailwind for this segment's easier compare for the quarter. Growth was attributable to an increase in our mechanical business, which includes bundled energy solutions and power projects. Offsetting some of these results was a loss of certain contracts within our U.K. business.
Overall, operating profit for the quarter was $8.3 million compared to $6.8 million last year at a margin rate of 5.9%. As expected, amortization of commission expense was higher this year by $2.4 million given they were capitalized last year due to the adoption of ASC 606. Operating profit and margins also reflect higher volume and related to mix as our strategy last year included winning job across a relatively broader range of margin profile. Technical Solution margins remain among the highest across our segments.
Turning to cash and liquidity, as you know, the first quarter of the fiscal year is typically our lowest cash flow quarter due to the timing of certain working capital requirements. As such, cash flow was negative this quarter. We ended the quarter with total debt including standby letter of credit of $1 billion and a bank adjusted leverage ratio of 2.7 times.
In Q1, we did not purchase any shares, and as of 31, 2020, we had $150 million of availability remaining under our share repurchase program. We will continue to manage our overall capital allocation program taking into consideration all uses of cash including share repurchases and M&A. During the quarter, we paid our 215th consecutive quarterly cash dividend of 18.5 cents per common share for a total distribution of $12.3 million to stockholders. And as stated in our earnings release, our board of directors approved our 216th consecutive quarterly cash dividend.
Finally, as you saw, we are reiterating our financial outlook for fiscal 2020. Although there are no changes, I'd like to provide some additional contact based on developments in Q4 including our Q1 results. Given our performance during the quarter, we believe the cadence of earnings will be back half weighted than originally expected. In the quarter, some client transitions on losses have been extended longer than originally expected, which benefited us modestly.
Having said that, the second half of the year contemplates many variables that we shouldn't take for granted. These include the achievement of overall higher retention, the delivery and timing of new sales equal to or higher than last year, traction from our new strategy in education, including performance during the critical buying season continued back half momentum for the Technical Solutions business. And the largest uncertainty at this point, no material impact of the coronavirus on our operations or client demand.
I'd also like to remind everyone that we will see an extra working day in Q2 and one less working day in Q4. Each working day has historically represented roughly $7 million of labor expense.
Moving to taxes, we continue to expect the 30% effective tax rate for 2020. The tax rate does not include discrete tax items such as the work opportunity tax credit and the tax impact of stock-based compensation award. As we've previously shared, we believe this impact will be approximately $7 million or $0.10 in 2020 compared to $8 million or $0.12 in fiscal '19. Almost immediately following our Q4earnings callin December, WOTC was formally extended by Congress for another year. But I wanted to remind everyone that our guidance already contemplated the expansion.
So to summarize, we started the year positively with good momentum across all our operating segments. We will continue to manage our business dynamically to sustain our progress.
Operator, we are now ready for questions.
Questions and Answers:
Operator
Thank you. [Operator Instructions] Our first question comes from the line of Sean Eastman of KeyBanc Capital Markets. Please proceed with your question.
Sean Eastman -- Keybanc Capital Markets -- Analyst
Hi team, nice quarter. Thanks for taking my questions. Just to start for me, it would be helpful to get some more color just around the decision to keep guidance intact here after the stronger than expected start to the year. It sounds like a lot of moving parts to be thinking about around the coronavirus in the background. But just some thoughts on where there might be cushion built into the outlook as we stand today would be helpful?
Scott Salmirs -- President and Chief Executive Officer
Sure. So look, as you can imagine, every quarter we contemplate what to do with guidance. And the way we're viewing it is, it's simply -- look, we've had a really good start to the year, it's early. But as you point out, there are unknowns with the coronavirus, right? And I'm sure we'll get into that a little bit more detail, but there are unknowns now. If you think about it, the majority of our earnings on the back half because of the way our business are, we're looking at this as the first quarter derisking that back half for now. And we'll see in Q2, we look forward to coming back and updating. But we just don't want to get ahead of ourselves after Q1.
Sean Eastman -- Keybanc Capital Markets -- Analyst
Okay. That's fair. And the retention, repricing element has been a big theme over the past 12 months or so. I was hoping maybe you could give us an update on how those discussions with clients have gone here in the first quarter? Maybe how much work still needs to be repriced? And how you're feeling about those comments last quarter that we should see a return to double-digit EPS growth profile in the out-year?
Scott Salmirs -- President and Chief Executive Officer
So retention, we've seen a little bit of an uptick in retention. And again, another place we don't want to get too ahead of ourselves because it is a trailing 12-month calculation. But the conversations have been going well with clients. I mean at this point, everybody understands what's going on with wage rates and clearly rising ahead of what our contract escalations are, whether our contracts -- escalations are fixed for silent, right? We're still -- wages are growing ahead of that. But over the last couple of years, we've had a significant amount of conversations with clients. There was a lot of leading out, which is why you saw our retention rate trailed down last year.
So look, I think it's a little easier than it was in 2019, but it's still early. We still have conversations to be had. But I guess what -- the sentiment I want to leave you with is that we're encouraged. We're encouraged because again, it's a conversation that it's not foreign to anybody at this point. So -- and we're optimistic about the future. We still see the double-digits in our line of sight as we go through Q1. So a lot of optimism here right now.
Sean Eastman -- Keybanc Capital Markets -- Analyst
Okay, great. And last one for me. Just curious with the U.S. ERP upgrade getting under way here, it sounds like still quite a bit of work to do. Just curious about the appetite for acquisitions while that process is under way?
Scott Salmirs -- President and Chief Executive Officer
Yeah. So that won't really inhibit our M&A appetite. Even when you look at it with GCA at the start, we left them on two separate ERP systems. So you don't have to necessarily integrate from day one. So if there is something of interest, something we like, we would be -- we'd be game for it even with the ERP.
Sean Eastman -- Keybanc Capital Markets -- Analyst
Okay. Really helpful. Thanks for the time.
Scott Salmirs -- President and Chief Executive Officer
Thank you.
Operator
Our next questions come from the line of Sam Kusswurm of William Blair. Please proceed with your question.
Sam Kusswurm -- William Blair -- Analyst
Good morning, everyone.
Scott Salmirs -- President and Chief Executive Officer
Good morning.
Sam Kusswurm -- William Blair -- Analyst
I understand it might be hard to quantify some of the possible effects of the coronavirus right now, but even a qualitative perspective would be helpful, especially as it relates maybe to be effects on each segment?
Scott Salmirs -- President and Chief Executive Officer
Yeah. So it's hard to give a tremendous amount of insight. This is still at the beginning stages. But let's look at kind of what ABM does, right? First and foremost, we are at the center of this because people they hire us for a hygiene basis, right, for our Janitorial segment or service lines. And the way we're thinking about this is that in our kind of more traditional facility services segments like our Business & Industry segment or our Technology & Manufacturing segment, our Education segment. We see that there will be an appetite for more visibility from the property facility operators to get people out there, cleaning, sanitizing. We're starting to see requests that are coming in and that will translate into some work orders. So that's -- for us, that's a real nice tailwind. But on the Aviation segment, which is a $1 billion in revenue, we'll probably see a headwind there, right? As flights ramp down, as traffic ramps down.
So I think for us, it's early to quantify. And those remain an unknown. So there are absolute segments of our business where we will see an uptick. How meaningful? We don't know. But again, the same thing with Aviation. We'll definitely see a downtick. How meaningful? We don't know. And that's why when we think about guidance and how we thought about everything, Q2 is going to be the right time to come back and kind of iterate on this because it will be three months from now, and I think there will be a lot more information and a lot more trending on how it's going. So that was my long-winded way of saying, it's too early.
Sam Kusswurm -- William Blair -- Analyst
No, great color there. Maybe just to clarify then for Aviation and Education segments. How much impact do volume changes have on kind of contracted rates? For example, if your flights or if schools start to close here?
Scott Salmirs -- President and Chief Executive Officer
Yeah. No, again, I hate to do this, but it is hard to tell because if you look at our Aviation segment, we do a wide range of services, right? We're putting meals on planes, we're cleaning cabins. But -- and you'd say, while flights are down, will that iterate down? Yeah, possibly. But we're also cleaning terminals, right? So will we have an increase in work orders to sanitize bathrooms and terminals? So the answer is yes there. We do wheelchair pushes, right? That's something that could ramp down. And a good portion of our business is in the U.K. And I think that's -- we're watching that closely too.
So I think for Aviation, we will have a more -- I would say, we'll have a larger effect on that segment than Education will have in terms of the positives, because I think it's less about school closings, it's going to be more about sanitizing. Right now we have seen some isolated school closings. Nothing that has yet affected our portfolio. But I think if it stays on this kind of normal trending, we'll probably see an uptick in work orders for again more about visibility and frequencies for sanitizing.
Sam Kusswurm -- William Blair -- Analyst
Awesome. I appreciate the context, guys.
Scott Salmirs -- President and Chief Executive Officer
Great.
Operator
Our next question is coming from the line of Andrew Wittmann of Robert W Baird & Co. Please proceed with your questions.
Andrew Wittmann -- Robert W. Baird & Co., Inc. -- Analyst
Yeah, great. Good morning. I guess I just wanted to get a little bit more detail on some of the investments in the ERP. Obviously you guys coming into this year, you talked about a number of different kind of investments that you made, you were making including HR, IT, kind of the ERP that you've mentioned here earlier on the call, as well as in the sales force. I think all of those and coming into the year as the total number is going to be about $25 million. But specific here to the ERP, I wanted to get a little bit more detail, because it sounded, Scott, like you've had to put a little bit more resources at that. And you said, hey, we're going to do the right thing for the business, we're not going to risk the customer if that pushes that out, so be it. And that obviously makes sense. But I guess on the financial impact of this, how should we think about it? Is the spend going to be up? Is that a mitigating factor to the -- maybe what would have otherwise been a raise to the guidance here? Or is it -- if you delay it, is that a benefit to the P&L this year? I just wanted to understand how that factors into the numbers.
Anthony Scaglione -- Chief Financial Officer
Yeah. Let me take that. Andy, this is Anthony. Most of the cost to be incurred for this year will be really one-time in nature. We're adding additional resources, primarily program management, change management and that should not have effect to our adjusted guidance. So our guidance currently reflects the anticipated go live later in this year. And any additional delay will have a nominal effect in terms of any anticipated depreciation. So it will not have a material impact to what we previously guided to.
Andrew Wittmann -- Robert W. Baird & Co., Inc. -- Analyst
Great. And then just in terms of just trying to get a sense here on the top-line, recognizing obviously the detail and appreciating the detail on the retention rate. I guess, Scott, as you're going through your reviews of your sales productivity and your retention rates here, it kind of feels like kind of the majority of the -- I think you used the term weeding out might have happened in '19. I know there is always a factor that goes on here. But do you feel like you're on the right side of that and that with the sales productivity that you're seeing out of the organization after the comps on the revenue side lap late this year. Do you feel like the top-line can get back to more what we've seen from ABM in the past, a couple of points higher?
Scott Salmirs -- President and Chief Executive Officer
I mean there's no question. It's just a delayed effect, right? It doesn't happen overnight, right, because we're increasing our sales force. So I think the good news for us is even from when we talked to you all about it at year-end, we're probably up 5% in sales people, our target is to get to 10%. And remember, you got to over hire for that, right, because we do have attrition either self-selecting or performance-based.
So we're on a good path for hiring sales people. And there is no question that we're going to be back to where we were. I think the good news is, we are optimistic about retention and where it's heading. And that's as -- you know it's funny, Andy. And that's as powerful as bringing on new sales, right? So all in all, we absolutely believe we'll get back to where we are. And it's not just hiring sales people, it's getting them trained, it's working with operators. As you know, in this business, as much as the business comes through sales people, it comes through operations and clients wanting to grow with us. So we are energized by it.
Andrew Wittmann -- Robert W. Baird & Co., Inc. -- Analyst
Got it. Okay. And then just my final question here is a little bit more of a modeling question, so apologize if it's more detailed. But just given that, the cost buckets on the face of your P&L has moved around a lot. I mean your segment margins are clearly benefiting from the issues that you did and things that you addressed with the customer base, but obviously, your corporate investments have ramped up as a result of that. So Anthony, I was just hoping you could help us understand the cadence of that unallocated corporate segment as the year plays out here, at least versus our numbers, it came in under corporate segments this quarter and it kind of feels like that's going to ramp as the year goes on. But any help you could give, just trying to help us understand of that line in particular might trend as the year goes on would be helpful?
Anthony Scaglione -- Chief Financial Officer
Yeah. It will ramp up as the year progresses. So we were right in line with expectations for Q1. And our guidance, as I mentioned earlier, continue to be in line with what we previously articulated. So you'll see a ramp up in the corporate investments and that will be a component part of the investments in IT, HR, as well as the sales people, as Scott alluded to.
Andrew Wittmann -- Robert W. Baird & Co., Inc. -- Analyst
Do you have a number or a range just on that line since it is kind of changing by a decent amount year-over-year that we should be thinking about for that line?
Anthony Scaglione -- Chief Financial Officer
It will be an equal progression by quarter. I can provide that offline, Andy.
Andrew Wittmann -- Robert W. Baird & Co., Inc. -- Analyst
I'll leave it there. Thanks guys.
Scott Salmirs -- President and Chief Executive Officer
Thanks.
Operator
Our next question is coming from the line of Tate Sullivan of Maxim Group. Please proceed with your questions.
Tate Sullivan -- Maxim Group LLC -- Analyst
Hi. Thank you for the comments on top of mind coronavirus. But what are -- I mean you mentioned, do work orders to -- for sanitation work, does that -- is that on top of current contracts or does some of your contracts across end markets include I mean periodic sanitation?
Scott Salmirs -- President and Chief Executive Officer
Yeah. My comments were really about incremental work, right? So picture being at a property, let's say it's an office building and you have a scope of work that includes how often you police the bathroom, and police means refreshing it, right? How often you police a bathroom? How many people you keep in the public spaces like a lobby in the stairwells, right? So you'll have a scope of work. And that's true of educational facilities, manufacturing facilities, you'll have a scope of work. And then what happens is when you have something like COVID-19, you get called in by the facilities people and say look, how do we do more. And usually it's one of two ways, either kind of reshuffling the staff and reprioritizing what they do. But in this case, it's probably going to be more like adding bodies because I think the important thing -- there is a couple of things about what's happening right now from a landlord's perspective. One is, you'd like to sanitize more, but we will know that's no surety for like solving this problem, right? So -- but you want to sanitize more, but also you want to create visibility for your tenants, for the employees of your firm if you're running a -- if you're corporate facilities' person. So you want that visibility.
You really see a brand, right? You want employees, you want tenants to feel comfortable, students to feel comfortable that you're doing everything you can. So a combination of sanitizing to try to do whatever you can to lessen the effects or the contamination is one thing. And the second thing is just on the branding standpoint, which we understand that makes good sense. So our comments again are more about incremental revenue and profitability as a result of this. Does that helpful?
Tate Sullivan -- Maxim Group LLC -- Analyst
Yes, thank you. And then on the other side too. Is there any -- have you seen or in past circumstances pressure on costs for janitorial supplies?
Scott Salmirs -- President and Chief Executive Officer
No. Anecdotally, you hear about like places like Amazon and other places where prices have perked up a little bit, but we have national supplying agreements. We are on the phone. We're not dealing -- we're dealing directly with manufacturers and they are doing the right thing by a company like ABM because if you think about it when it comes to janitorial supplies, right, which is what we're talking about here, who is a larger purchaser, who is a more important relationship than ABM. So we feel like we're in position as supplies come about. And we have an amazing procurement team here that are on the ball with this. So we feel good about it.
Tate Sullivan -- Maxim Group LLC -- Analyst
Okay. Thank you, Scott. Shifting to Technical Solutions. I mean, year-over-year revenue growth again in the quarter of 20%, more than 20%. What is the sales cycle in Technical Solutions if we do have a temporary slowdown here? And can you comment on how sustaining are rate of revenue growth going forward, if you can?
Scott Salmirs -- President and Chief Executive Officer
Yeah. I mean traditionally, if you look over the years, it's more back half weighted in the summer months with air conditioning, right, if you think about it. And I think now that we're seeing first quarter results are really strong. We don't see any slowdown in clients' appetite for energy projects, sustainability. So I think if there is going to be any impact at all on the Technical Solutions side and we haven't seen it, yeah. But if there is -- will there be a slowdown in the ability to get equipment for large renovations that we're doing as we refurbish projects. Where is the equipment coming from? Where are the component parts coming from, from a manufacturing standpoint. But I will tell you, talk to the team. And as of right now, they haven't seen any effects of maybe production in China ramping down. So -- but I think it's still an evolving story right now. But I wouldn't even put a caution sign up right now. But I do want to just flag, it is something that we our equipment heavy in that, right? But for now, nothing.
Anthony Scaglione -- Chief Financial Officer
And I would just add to that. We saw significant growth last year. So when we look at the second half, just the compares are going to get tougher, just because of the second half, the overdrive in fiscal '19 when we compare to 2020 is it's going to be a harder second half compare. But we're still anticipating year-on-year high-single-digit growth.
Scott Salmirs -- President and Chief Executive Officer
Yeah. And that's right point, right? Because we don't want to get in the back half and say, wow, you're only growing 1% year-over-year. You'll like, well, no, that's because we grew 22% last year. So we have to -- let's -- we have to keep that in mind that's not a negative, it's the fact that we're just overdriving of that. So what Anthony points out is exactly right. We still feel confident we're going to end up in the high-single-digits.
Tate Sullivan -- Maxim Group LLC -- Analyst
Okay, great. Thank you for all those comments.
Operator
Our next question is coming from the line of David Silver of CL King. Please proceed with your question.
David Silver -- CL King & Associates, Inc. -- Analyst
Yeah, hi. So I had a quick question about the income statement items. And this is may be related to contract structure or contract type within your portfolio. So anyway, if I look at the first two lines of your income statement, so revenues less operating expenses. To me, I don't know what you call that margin, but I'll just call it contract-to-contract margins. And this quarter, I mean it was kind of noticeable, but the operating expenses as a percentage of revenues improved by 100 basis points year-over-year. And I'm wondering if you could point to what the sources of that were? Is this just better bidding or better bidding strategy or what it going on there that led to that meaningful year-over-year improvement I guess in what I'll call contract margins?
Anthony Scaglione -- Chief Financial Officer
Yeah. I think you're referring to what we view as gross profit. So that includes both the contract margins in addition to the indirect costs. From a GAAP basis, which is what you're referencing that also include items impacting comparability, which the biggest driver in the year-over-year is going to be the self-insurance adjustment. So we had $11 million swing between fiscal '19 and fiscal '20 as it relates to the self-insurance. So it's not a fair compare in terms of looking at it on an absolute basis. If you strip that out, the driver is going to be a better mix in fiscal '20 as it relates to fiscal '19.
David Silver -- CL King & Associates, Inc. -- Analyst
Okay. I was half wondering if the self-insurance was a factor there. More kind of qualitative question about your contract portfolio. But you bid on contracts that are offered or with the terms stipulated by your potential customers. And I'm just wondering, Scott, I mean it's been persistent for a while, but on this call at several points you know you reiterated the ongoing upward pressures are on wage rates and the tightness of the labor availability. From your perspective, are you seeing a transition or a shift to more fixed price contracts as opposed to cost plus? And if there is a shift that's noticeable, I mean how -- I imagine that there are higher implied contract margins on fixed price contracts and that's to compensate you, the service provider for taking on additional risk. So this is kind of a balancing act I guess between risk and reward. But from your perspective, is there a customer, increasing customer preference for risk shifting by asking for fixed price bids to a greater extent?
Scott Salmirs -- President and Chief Executive Officer
No. We really haven't seen a differentiation from what's been before. And as you know, we're about 25% cost plus. And we like the fact that we have some diversity in our portfolio mix. We're about 45% fixed price, 25% cost. We have project revenues, which is 10% and then some management reimbursements on the parking side. But we want to be careful because we wouldn't want it shifting to cost plus, because it would feel good right now, right, because maybe we'd have a little bit less risk in the portfolio. But like the performance management side is great for us because as we invest in labor management tools and productivity and efficiency, we'll reap the benefits of that, right?
So I think it's important to have a good shift. And remember, we don't necessarily dictate that, that comes from the client, they make that decision. So for us the diversity is great. And again, we always think about that depending on different cycles. Don't you wish you had more cost. In the last two years, we wish we were 100% cost plus, but then be careful because when the market comes back and we have all these new labor management tools, you'd be like man, we really can't get an upgrade. So I think we're happy that there is diversity in the product mix.
David Silver -- CL King & Associates, Inc. -- Analyst
Okay. And then last one would be kind of more of a inorganic growth I guess or use of cash flow question. But in my opinion, I mean there are ways to add value to your company and to your stock price across the business cycle. And painting with a very broad brush, I mean operationally, operations take precedence during robust markets, but during decelerating, markets are soft, markets maybe inorganic or company-directed efforts take precedence. So compared to three months ago, I mean your stock price is down, borrowing costs are down. I'm guessing the asking price for with M&A in your project funnel might be a little more attractive. What kind of tools or how do you view the current market in terms of favoring what's a share repurchases or refinancing your debt or perhaps being able to complete some acquisitions at a more attractive multiple than you might be able to in a more robust environment. In other words, what are the opportunities or the levers that you think you have here that become more likely in the current environment? Thank you.
Scott Salmirs -- President and Chief Executive Officer
Okay. So I'll need about two hours to answer that. I'm getting -- that's a hardy question. I think -- look, one of the things that we are pretty good about is staying disciplined on our capital approach. In that, look at like three month market swings and we've been good about that. So we have a share repurchase program that's out there. We have -- we're under three times leverage, which is pretty encouraging for us in terms of M&A. So we have a dedicated M&A team now that are looking at opportunities. We are engaging in conversations. And with interest rates so low, there is definitely competition from private equity to purchase some of these operating companies that we'd be interested in.
So I think we are taking -- again, I want to go back to that word disciplined. We're going to do the right thing. We're going to make sure that it makes sense for us strategically, right, because there are certain segments that are very attractive to us. And we've talked about areas like Technical Solutions, we've talked to you about highly synergistic opportunities, which are good. So I think the key for us right now is again to stay disciplined.
Operator
Our last question is coming from the line of Marc Riddick of Sidoti. Please proceed with your questions.
Marc Riddick -- Sidoti & Co. -- Analyst
Hi, good morning, folks.
Anthony Scaglione -- Chief Financial Officer
Hey Marc.
Marc Riddick -- Sidoti & Co. -- Analyst
So wondering if I could spend a little time focusing on the Education for a moment. There was some comments made during the prepared remarks as we're sort of -- I know it's a little early, but approaching sort of the high season, if you will. I was wondering if you could spend a little time focus on talking about that as this will now be kind of your second year post-acquisition. I was wondering if we could sort of talk about where you are, some of the progress made is and where you're thinking opportunities are and maybe whether you're looking at some new go-to-market offerings or what we may be in store for going into that important season? Thanks.
Scott Salmirs -- President and Chief Executive Officer
Sure. And just to reground the conversation. Remember, this was a segment that was particularly challenged over the last couple of years because the predominance of the contracts were in non-union markets that were subject to the higher kind of wage increases. So we had to go back and get escalation increased. So it's been more challenging.
I think what we're really pleased about is the first quarter met our internal expectations, so we're encouraged about that. We're about to go into some of the buying season on the K-12, which is going to be happening. And we put a new Head of Sales in I guess six months or nine months ago that's looking at the market from the perspective of how do you combine the traditional janitorial landscaping offering we have with our ATS segment and create real value and differentiation for our customers versus our competitors, right? Like our -- the visualization we have is we're going into pitch a client for a janitorial assignment saying, hey, by the way, we think we can help you by doing a retrofit of your air conditioning and your lower utilities as well as the janitorial, and the clients saying, wow. No one else has talked about that because you have a more broad service offering. So we think there is good tailwinds for us in the future. It's just -- the reality, Marc is, these things do take time, right? So -- but so far so good. And again, we're really pleased with how we landed in the first quarter.
Marc Riddick -- Sidoti & Co. -- Analyst
And there was comments around some of the hiring that you've done so far. Is there any particular segment which had a greater amount of early hiring? I think there was a little bit of a commentary mentioned around 5% or 10% growth year-over-year. But I was wondering if there was any particular segment that had a greater concentration of new hires or whether it was broad-based? Thanks.
Scott Salmirs -- President and Chief Executive Officer
Yeah. That 5% was in relation to our sales people. And I think for us -- I think as it goes to hiring, it's just -- it's a very difficult market, it's challenging. We have 140,000 people, right? So we are a hiring machine. Last year, we hired over 70,000 people with turnover. So I think we see pressures all across the board, but it hasn't inhibited us from performing. It's just -- we look at HR as one of our strengths, right, based on what we do. And we've been standing up a new HR organization. We have a new model that we are rolling out in the field on how we approach HR. And that's been so far early -- early signs are super, super positive on the strategic approach we're taking to that. So I think high level, very challenging to hire people in this market, but we're doing as good a job as possible. So we're pleased.
Marc Riddick -- Sidoti & Co. -- Analyst
Okay, great. Thank you very much.
Scott Salmirs -- President and Chief Executive Officer
You got it.
Operator
We have reached the end of the question-and-answer session. I will now turn the call back over to management for any closing remarks.
Scott Salmirs -- President and Chief Executive Officer
Well, thanks everybody. And look, we look forward to Q2 probably more than any forward-looking quarter just because of everything that's going on right now. And also, again, we're pleased on how we performed in Q1. But the bigger message here is, listen, the coronavirus, COVID-19 is a real thing. And for anyone listening on this call, just do yourself a favor, stay informed, go to the CDC website, you can go to our website. We think we're doing a pretty good job of people -- keeping people informed. And I'm going to sound like everyone's mother here, but wash your hands, wash your hands often. And we look forward to updating you in Q2. So thanks everybody.
Operator
[Operator Closing Remarks]
Duration: 52 minutes
Call participants:
Susie A. Kim -- Vice President-Investor Relations & Treasurer
Scott Salmirs -- President and Chief Executive Officer
Anthony Scaglione -- Chief Financial Officer
Sean Eastman -- Keybanc Capital Markets -- Analyst
Sam Kusswurm -- William Blair -- Analyst
Andrew Wittmann -- Robert W. Baird & Co., Inc. -- Analyst
Tate Sullivan -- Maxim Group LLC -- Analyst
David Silver -- CL King & Associates, Inc. -- Analyst
Marc Riddick -- Sidoti & Co. -- Analyst
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | ABM Industries Inc (NYSE: ABM) Q1 2020 Earnings Call Mar 5, 2020, 8:30 a.m. ET Contents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks: Operator Greetings, and welcome to the ABM Industries, Inc. Quarter One 2020 Earnings Call. We're so proud that we had up to 300 ABM team members at Levi's Stadium throughout the San Francisco 49ers' incredible season and post-season run. | Operator [Operator Closing Remarks] Duration: 52 minutes Call participants: Susie A. Kim -- Vice President-Investor Relations & Treasurer Scott Salmirs -- President and Chief Executive Officer Anthony Scaglione -- Chief Financial Officer Sean Eastman -- Keybanc Capital Markets -- Analyst Sam Kusswurm -- William Blair -- Analyst Andrew Wittmann -- Robert W. Baird & Co., Inc. -- Analyst Tate Sullivan -- Maxim Group LLC -- Analyst David Silver -- CL King & Associates, Inc. -- Analyst Marc Riddick -- Sidoti & Co. -- Analyst More ABM analysis All earnings call transcripts 10 stocks we like better than ABM Industries When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. ABM Industries Inc (NYSE: ABM) Q1 2020 Earnings Call Mar 5, 2020, 8:30 a.m. ET Contents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks: Operator Greetings, and welcome to the ABM Industries, Inc. Quarter One 2020 Earnings Call. | Operator [Operator Closing Remarks] Duration: 52 minutes Call participants: Susie A. Kim -- Vice President-Investor Relations & Treasurer Scott Salmirs -- President and Chief Executive Officer Anthony Scaglione -- Chief Financial Officer Sean Eastman -- Keybanc Capital Markets -- Analyst Sam Kusswurm -- William Blair -- Analyst Andrew Wittmann -- Robert W. Baird & Co., Inc. -- Analyst Tate Sullivan -- Maxim Group LLC -- Analyst David Silver -- CL King & Associates, Inc. -- Analyst Marc Riddick -- Sidoti & Co. -- Analyst More ABM analysis All earnings call transcripts 10 stocks we like better than ABM Industries When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. ABM Industries Inc (NYSE: ABM) Q1 2020 Earnings Call Mar 5, 2020, 8:30 a.m. ET Contents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks: Operator Greetings, and welcome to the ABM Industries, Inc. Quarter One 2020 Earnings Call. | Operator [Operator Closing Remarks] Duration: 52 minutes Call participants: Susie A. Kim -- Vice President-Investor Relations & Treasurer Scott Salmirs -- President and Chief Executive Officer Anthony Scaglione -- Chief Financial Officer Sean Eastman -- Keybanc Capital Markets -- Analyst Sam Kusswurm -- William Blair -- Analyst Andrew Wittmann -- Robert W. Baird & Co., Inc. -- Analyst Tate Sullivan -- Maxim Group LLC -- Analyst David Silver -- CL King & Associates, Inc. -- Analyst Marc Riddick -- Sidoti & Co. -- Analyst More ABM analysis All earnings call transcripts 10 stocks we like better than ABM Industries When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. ABM Industries Inc (NYSE: ABM) Q1 2020 Earnings Call Mar 5, 2020, 8:30 a.m. ET Contents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks: Operator Greetings, and welcome to the ABM Industries, Inc. Quarter One 2020 Earnings Call. |
29366.0 | 2020-02-26 00:00:00 UTC | Validea Peter Lynch Strategy Daily Upgrade Report - 2/26/2020 | ABM | https://www.nasdaq.com/articles/validea-peter-lynch-strategy-daily-upgrade-report-2-26-2020-2020-02-26 | nan | nan | The following are today's upgrades for Validea's P/E/Growth Investor model based on the published strategy of Peter Lynch. This strategy looks for stocks trading at a reasonable price relative to earnings growth that also possess strong balance sheets.
CURTISS-WRIGHT CORP. (CW) is a mid-cap growth stock in the Auto & Truck Parts industry. The rating according to our strategy based on Peter Lynch changed from 0% to 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Curtiss-Wright Corporation is a manufacturing and service company that designs, manufactures, and overhauls precision components and provides engineered products and services to the aerospace, defense, power generation and general industrial markets. The Company operates through three segments: Commercial/Industrial, Defense and Power. The Commercial/Industrial segment's products include electronic throttle control devices and transmission shifters, electro-mechanical actuation control components, valves, and surface technology services. The Defense segment's products include commercial off-the-shelf (COTS) embedded computing board level modules, turret aiming and stabilization products, weapons handling systems, avionics and electronics, flight test equipment, and aircraft data management solutions. The Power segment's products include a range of hardware, pumps, valves, fastening systems, specialized containment doors, airlock hatches and spent fuel management products.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
INVENTORY TO SALES: PASS
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EARNINGS PER SHARE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
AAR CORP. (AIR) is a small-cap growth stock in the Aerospace & Defense industry. The rating according to our strategy based on Peter Lynch changed from 0% to 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: AAR CORP. (AAR) is a provider of services and products to the commercial aviation and government and defense markets. The Company operates in two segments: Aviation Services, which consists of supply chain and maintenance, repair and overhaul (MRO) activities, and Expeditionary Services, which includes airlift and mobility activities. Its services and products include aviation supply chain and parts support programs; MRO of aircraft and landing gear; design and manufacture of specialized pallets, shelters and containers; expeditionary airlift services; aircraft modifications, and aircraft and engine sales and leasing. It serves commercial, defense and governmental aircraft fleet operators, original equipment manufacturers and independent service providers around the world. Its landing gear overhaul facility is in Miami, Florida, where it repairs and overhauls landing gear, brakes and actuators for various types of commercial and military aircraft.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
INVENTORY TO SALES: PASS
YIELD ADJUSTED P/E TO GROWTH (PEG) RATIO: PASS
EARNINGS PER SHARE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
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ABM INDUSTRIES, INC. (ABM) is a mid-cap growth stock in the Business Services industry. The rating according to our strategy based on Peter Lynch changed from 0% to 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: ABM Industries Incorporated is a provider of integrated facility solutions. The Company operates through five segments: Janitorial, Facility Services, Parking, Building & Energy Solutions, and other. Its Janitorial segment provides a range of cleaning services for commercial office buildings, data centers, educational institutions, government buildings, health facilities, industrial buildings, retail stores, sport event facilities and transportation hubs. Its Facility Services segment provides onsite mechanical engineering and technical services and solutions relating to a range of facilities and infrastructure systems. Its Parking segment provides parking and transportation services. Its Building & Energy Solutions segment provides energy solutions; electrical; heating, ventilation and air conditioning; lighting, and other general maintenance and repair services for clients. Its other segment provides facility solutions to airlines and airports.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
YIELD ADJUSTED P/E TO GROWTH (PEG) RATIO: PASS
EARNINGS PER SHARE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
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AVALONBAY COMMUNITIES INC (AVB) is a large-cap growth stock in the Real Estate Operations industry. The rating according to our strategy based on Peter Lynch changed from 56% to 74% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: AvalonBay Communities, Inc. is a real estate investment trust (REIT). The Company is focused on the development, redevelopment, acquisition, ownership and operation of multifamily communities primarily in New England, the New York/New Jersey metro area, the Mid-Atlantic, the Pacific Northwest, and Northern and Southern California. Its segments include Established Communities, Other Stabilized Communities and Development/Redevelopment Communities. As of June 30, 2017, the Company owned or held a direct or indirect ownership interest in 287 apartment communities containing 83,123 apartment homes in 10 states and the District of Columbia, of which 23 communities were under development and nine communities were under redevelopment. It operates its apartment communities under three core brands: Avalon, AVA and Eaves by Avalon. Its real estate investments consist of operating apartment communities, communities in various stages of development (Development Communities) and Development Rights.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: FAIL
SALES AND P/E RATIO: PASS
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
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MASTERCARD INC (MA) is a large-cap growth stock in the Consumer Financial Services industry. The rating according to our strategy based on Peter Lynch changed from 56% to 87% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: MasterCard Incorporated is a technology company that connects consumers, financial institutions, merchants, governments and businesses across the world, enabling them to use electronic forms of payment. The Company operates through Payment Solutions segment. The Company allows user to make payments by creating a range of payment solutions and services using its brands, which include MasterCard, Maestro and Cirrus. The Company provides a range of products and solutions that support payment products, which customers can offer to their cardholders. The Company's services facilitate transactions on its network among cardholders, merchants, financial institutions and governments. The Company's products include consumer credit and charge, commercial, debit, prepaid, commercial and digital. The Company's consumer credit and charge offers a range of programs that enables issuers to provide consumers with cards allowing users to defer payment.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: PASS
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: NEUTRAL
EQUITY/ASSETS RATIO: PASS
RETURN ON ASSETS: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
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CARTER'S, INC. (CRI) is a mid-cap growth stock in the Retail (Apparel) industry. The rating according to our strategy based on Peter Lynch changed from 72% to 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Carter's, Inc. is a marketer of apparel exclusively for babies and young children. The Company owns two brand names in the children's apparel industry, Carter's and OshKosh B'gosh (OshKosh). These brands are available in department stores, national chains, and specialty retailers domestically and internationally. The Company offers its products through over 1,000 Company-operated stores in the United States, Canada, and Mexico, and via its online sites www.carters.com, www.oshkosh.com, and www.cartersoshkosh.ca. The Company's Child of Mine brand is available at Walmart, its Just One You brand is available at Target, and its Simple Joys brand is available on Amazon. The Company also owns Skip Hop, a global lifestyle brand for families with young children.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
YIELD ADJUSTED P/E TO GROWTH (PEG) RATIO: PASS
EARNINGS PER SHARE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
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SIMMONS FIRST NATIONAL CORPORATION (SFNC) is a mid-cap value stock in the Regional Banks industry. The rating according to our strategy based on Peter Lynch changed from 72% to 74% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Simmons First National Corporation is a financial holding company. The Company, through its subsidiary bank, Simmons Bank, provides financial services to individuals and businesses throughout the market areas they serve. As of December 31, 2016, Simmons Bank conducted banking operations through 150 financial centers located in communities throughout Arkansas, Kansas, Missouri, Tennessee, Colorado, Oklahoma and Texas. Simmons Bank offers consumer, real estate and commercial loans, checking and savings deposits. Simmons Bank and its subsidiaries have also developed products and services, which include credit cards, investments, agricultural finance lending, equipment lending, insurance and small business administration lending. The securities within the portfolio are classified as either held-to-maturity, available-for-sale or trading. The Company offers deposits, including non-interest bearing transaction accounts; interest bearing transaction accounts, and time deposits.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
YIELD ADJUSTED P/E TO GROWTH (PEG) RATIO: PASS
EARNINGS PER SHARE: PASS
TOTAL DEBT/EQUITY RATIO: NEUTRAL
EQUITY/ASSETS RATIO: PASS
RETURN ON ASSETS: PASS
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WEBSTER FINANCIAL CORPORATION (WBS) is a mid-cap value stock in the Regional Banks industry. The rating according to our strategy based on Peter Lynch changed from 72% to 74% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Webster Financial Corporation is a bank and financial holding company. The Company's segments include Commercial Banking, Community Banking, HSA Bank, Private Banking, and Corporate and Reconciling. The Commercial Banking segment includes middle-market, asset-based lending, commercial real estate, equipment finance, and treasury and payment solutions, which includes government and institutional banking. The Community Banking segment consists of its Personal Banking and Business Banking segments. HSA Bank, a division of its subsidiary, Webster Bank, National Association, offers health savings accounts, health reimbursement accounts, flexible spending accounts, and other financial solutions. Private Banking serves high-net-worth clients, not-for-profit organizations, and business clients with asset management, trust, loan and deposit products, and financial planning services. Its treasury unit and consumer-liquidating portfolio are included in the Corporate and Reconciling segment.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
YIELD ADJUSTED P/E TO GROWTH (PEG) RATIO: PASS
EARNINGS PER SHARE: PASS
TOTAL DEBT/EQUITY RATIO: NEUTRAL
EQUITY/ASSETS RATIO: PASS
RETURN ON ASSETS: PASS
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MERCURY SYSTEMS INC (MRCY) is a mid-cap growth stock in the Computer Peripherals industry. The rating according to our strategy based on Peter Lynch changed from 0% to 74% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Mercury Systems, Inc. is a commercial provider of secure processing subsystems designed and made in the United States. The Company's solutions support a range of defense and intelligence programs. Its technologies include embedded processing modules and subsystems, radio frequency (RF) and microwave multi-function assemblies, as well as subsystems, and RF and microwave components. It designs and builds RF and microwave components and subsystems for the electronic warfare (EW), signals intelligence (SIGINT) and other communications requirements and applications. It offers analyst services and systems engineering support, consulting, maintenance and other support, testing and installation. It designs, markets and sells software and middleware environments for the development and execution of signal and image processing applications on a range of heterogeneous and multi-computing platforms. It also offers solutions in mission computing, safety-critical avionics and platform management.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: FAIL
SALES AND P/E RATIO: NEUTRAL
INVENTORY TO SALES: PASS
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
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HORIZON BANCORP INC (HBNC) is a small-cap value stock in the Regional Banks industry. The rating according to our strategy based on Peter Lynch changed from 72% to 74% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Horizon Bancorp Inc, formerly Horizon Bancorp, is a bank holding company. The Company provides a range of banking services in Northern and Central Indiana and Southwestern and Central Michigan through its bank subsidiary, Horizon Bank, N.A. (the Bank) and other affiliated entities and Horizon Risk Management, Inc. The Company operates through commercial banking segment. The Bank is a full-service commercial bank offering commercial and retail banking services, corporate and individual trust and agency services and other services incident to banking. Horizon Risk Management, Inc. is a captive insurance company. LSB Risk Management, Inc. is a captive insurance company. As of September 1, 2017, the Bank operated through 60 offices throughout northern and central Indiana and southern Michigan and Ohio. The Bank's loan portfolio consists of commercial loans, real estate loans, mortgage warehouse loans and consumer loans.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
YIELD ADJUSTED P/E TO GROWTH (PEG) RATIO: PASS
EARNINGS PER SHARE: PASS
TOTAL DEBT/EQUITY RATIO: NEUTRAL
EQUITY/ASSETS RATIO: PASS
RETURN ON ASSETS: PASS
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EAST WEST BANCORP, INC. (EWBC) is a mid-cap value stock in the Regional Banks industry. The rating according to our strategy based on Peter Lynch changed from 72% to 74% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: East West Bancorp, Inc. is a bank holding company. The Company's principal business is to serve as a holding company for East West Bank (the Bank) and other banking or banking-related subsidiaries. The Bank is a California state-chartered bank, which operates in the United States and Greater China. The Bank provides a range of personal and commercial banking services to businesses, business executives, professionals, and other individuals. It operates through three segments: Retail Banking, Commercial Banking and Other. The Retail Banking segment focuses primarily on retail operations through the Bank's branch network. The Commercial Banking segment primarily generates commercial and industrial (C&I) loans and commercial real estate (CRE) loans through the domestic commercial lending operations in California, New York, Texas, Washington, Massachusetts, Nevada and Georgia, and through the foreign commercial lending operations in China and Hong Kong.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
YIELD ADJUSTED P/E TO GROWTH (PEG) RATIO: PASS
EARNINGS PER SHARE: PASS
TOTAL DEBT/EQUITY RATIO: NEUTRAL
EQUITY/ASSETS RATIO: PASS
RETURN ON ASSETS: PASS
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ACUITY BRANDS, INC. (AYI) is a mid-cap value stock in the Furniture & Fixtures industry. The rating according to our strategy based on Peter Lynch changed from 0% to 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Acuity Brands, Inc. is a provider of lighting solutions for commercial, institutional, industrial, infrastructure and residential applications throughout North America. It offers a portfolio of indoor and outdoor lighting and building management solutions for commercial, industrial, infrastructure and residential applications. The portfolio of lighting solutions include lighting products utilizing fluorescent, light emitting diode (LED), organic LED (OLED), high intensity discharge, metal halide, and incandescent light sources to illuminate a number of applications. The solutions portfolio of the Company includes modular wiring, LED drivers, sensors, glass and inverters sold primarily to original equipment manufacturers (OEMs). Its lighting and building management solutions are marketed under various brand names, including Lithonia Lighting and Holophane. The Company also offers indoor mapping and location platform that supports navigation applications.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
INVENTORY TO SALES: PASS
YIELD ADJUSTED P/E TO GROWTH (PEG) RATIO: PASS
EARNINGS PER SHARE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
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TRITON INTERNATIONAL LTD (TRTN) is a mid-cap value stock in the Rental & Leasing industry. The rating according to our strategy based on Peter Lynch changed from 72% to 74% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Triton International Limited is a lessor of intermodal containers and chassis. The Company operates through two business segments: Equipment leasing and Equipment trading. The Company's equipment leasing operations include the acquisition, leasing, re-leasing and ultimate sale of multiple types of intermodal transportation equipment, primarily intermodal containers. The Company purchases containers from shipping line customers and other sellers of containers. The Company resells these containers to container retailers and users of containers for storage and one-way shipments. As of December 31, 2016, the Company leased five types of equipment: dry freight containers, refrigerated containers, special containers, tank containers, and chassis. The Company operated its business through 28 subsidiary offices located in 14 different countries, as of December 31, 2016.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
SALES: PASS
YIELD COMPARED TO THE S&P 500: PASS
YIELD ADJUSTED P/E/GROWTH (PEG) RATIO: PASS
TOTAL DEBT/EQUITY RATIO: FAIL
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
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FLOOR & DECOR HOLDINGS INC (FND) is a mid-cap growth stock in the Constr. - Supplies & Fixtures industry. The rating according to our strategy based on Peter Lynch changed from 72% to 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Floor & Decor Holdings, Inc., formerly FDO Holdings, Inc., is a retailer of hard surface flooring and related accessories. The Company retails its products such as tile, stone, wood, marble, glass and decoratives. The Company has 72 stores across 17 states in the United States. The Company provides its products to customers, including professional installers and commercial businesses (Pro), Do it Yourself customers (DIY) and customers who buy the products for professional installation (Buy it Yourself or BIY). The Company engages their customers both through trained store associates and designers who can assist in narrowing choices and making the process of home renovation easier. The Company also sells the products through its Website www.flooranddecor.com.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: PASS
INVENTORY TO SALES: PASS
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
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ALLIANZGI DIVERSIFIED INCM AND CNVRTB FD (ACV) is a small-cap value stock in the Misc. Financial Services industry. The rating according to our strategy based on Peter Lynch changed from 72% to 74% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: AllianzGI Diversified Income & Convertible Fund is a diversified, closed-end management investment company. The Fund's investment objective is to provide total return through a combination of current income and capital appreciation, while seeking to provide downside protection against capital loss. The Fund invests in a combination of convertible securities, debt and other income-producing instruments and common stocks and other equity securities. The Fund expects to employ a strategy of writing (selling) covered call options on the stocks held in the equity portion of the portfolio. It invests in various sectors, including technology, healthcare, industrials, energy, telecommunications, biotechnology, food and staples retailing, Internet software/services, semiconductors and semiconductor equipment, and media. Allianz Global Investors Fund Management LLC is the Fund's investment manager. Allianz Global Investors U.S. LLC and NFJ Investment Group LLC are sub-advisors of the Fund.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
YIELD ADJUSTED P/E TO GROWTH (PEG) RATIO: PASS
EARNINGS PER SHARE: PASS
TOTAL DEBT/EQUITY RATIO: NEUTRAL
EQUITY/ASSETS RATIO: PASS
RETURN ON ASSETS: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
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FIVE BELOW INC (FIVE) is a mid-cap growth stock in the Retail (Department & Discount) industry. The rating according to our strategy based on Peter Lynch changed from 69% to 87% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Five Below, Inc. is a specialty retailer offering a range of merchandise for teen and pre-teen customer. The Company offers an assortment of products, including select brands and licensed merchandise across a range of categories, including Style, Room, Sports, Tech, Create, Party, Candy and Now. Its product groups include leisure, fashion and home, and party and snack. Its Leisure includes items such as sporting goods, games, toys, tech, books, electronic accessories, and arts and crafts. Fashion and home includes items such as personal accessories, attitude t-shirts, beauty offerings, home goods and storage options. Party and snack includes items such as party and seasonal goods, greeting cards, candy and other snacks, and beverages. As of February 2, 2019, the Company had operated 750 stores throughout the Northeast, South, Midwest and West regions of the United States.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: PASS
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
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BLOOMIN' BRANDS INC (BLMN) is a small-cap value stock in the Conglomerates industry. The rating according to our strategy based on Peter Lynch changed from 72% to 74% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Bloomin' Brands, Inc. is a holding company. The Company owns and operates casual, upscale casual and fine dining restaurants. The Company operates through two segments: U.S. and International. The U.S. segment includes all brands operating in the United States. The International segment includes brands operating outside the United States. As of December 25, 2016, the Company had a portfolio of four restaurant concepts: Outback Steakhouse, Carrabba's Italian Grill, Bonefish Grill, and Fleming's Prime Steakhouse & Wine Bar. OSI Restaurant Partners, LLC (OSI) is the Company's primary operating entity. New Private Restaurant Properties, LLC (PRP), an indirect subsidiary of the Company, leases the Company-owned restaurant properties to OSI's subsidiaries. As of December 25, 2016, the Company owned and operated 1,276 restaurants and franchised 240 restaurants across 48 states, Puerto Rico, Guam and 20 countries.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: PASS
INVENTORY TO SALES: PASS
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: FAIL
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DAQO NEW ENERGY CORP (ADR) (DQ) is a small-cap growth stock in the Semiconductors industry. The rating according to our strategy based on Peter Lynch changed from 87% to 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Daqo New Energy Corp. is a polysilicon manufacturer. The Company utilizes the chemical vapor deposition process, or the modified Siemens process, to produce polysilicon. The Company's segments include Polysilicon and Wafer. The Company manufactures and sells polysilicon to photovoltaic product manufacturers, whereby the polysilicon is processed into ingots, wafers, cells and modules for solar power solutions. The Company offers ready-to-use polysilicon, packaged to meet crucible stacking, pulling and solidification needs. The Company offers wafers through its downstream photovoltaic product manufacturing business. The Company also provides wafer original equipment manufacturer (OEM) service to external customers through tolling agreements by processing polysilicon to produce ingot and wafer. Its annual capacity for polysilicon is approximately 12,150 metric tons (MT) in Xinjiang. The Company's wafer manufacturing annual capacity is approximately 90 million pieces.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: NEUTRAL
INVENTORY TO SALES: PASS
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
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TAYLOR MORRISON HOME CORP (TMHC) is a mid-cap value stock in the Construction Services industry. The rating according to our strategy based on Peter Lynch changed from 0% to 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Taylor Morrison Home Corporation (Taylor Morrison) is a home building and land developing company. It builds and sells single-family detached and attached homes. It operates under the Taylor Morrison and Darling Homes brand names. It also provides financial services to customers through its mortgage subsidiary, Taylor Morrison Home Funding, LLC (TMHF), and title insurance and closing settlement services through its title company, Inspired Title Services, LLC. Its business is organized into multiple homebuilding operating divisions and a mortgage and title services division, which are managed as multiple reportable segments like: East Central and West Mortgage Operation. Its East Central segment includes Atlanta, Charlotte, Chicago, Orlando, Raleigh, Southwest Florida and Tampa Austin, Dallas, Houston and Denver. Its West Mortgage Operation includes Bay Area, Phoenix, Sacramento and Southern California, Taylor Morrison Home Funding (TMHF) and Inspired Title Services.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
INVENTORY TO SALES: PASS
YIELD ADJUSTED P/E TO GROWTH (PEG) RATIO: PASS
EARNINGS PER SHARE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
HORIZON TECHNOLOGY FINANCE CORP (HRZN) is a small-cap value stock in the Misc. Financial Services industry. The rating according to our strategy based on Peter Lynch changed from 72% to 74% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Horizon Technology Finance Corporation is an externally managed, closed-end, non-diversified management investment company. The Company's investment objective is to maximize investment portfolio's total return by generating current income from the debt investments it makes and capital appreciation from the warrants it receives when making such debt investments. It lends to and invests in development-stage companies in the technology, life science, healthcare information and services and cleantech industries (collectively Target Industries). It is focused on making secured debt investments (Venture Loans) to venture capital backed companies in its Target Industries. As of December 31, 2016, its debt investment portfolio consisted of 44 debt investments. As of December 31, 2016, the Company held warrants to purchase stock, predominantly preferred stock, in 78 portfolio companies, equity positions in five portfolio companies and success fee arrangements in 11 portfolio companies.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
SALES: FAIL
YIELD COMPARED TO THE S&P 500: PASS
YIELD ADJUSTED P/E/GROWTH (PEG) RATIO: PASS
TOTAL DEBT/EQUITY RATIO: NEUTRAL
EQUITY/ASSETS RATIO: PASS
RETURN ON ASSETS: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | For a full detailed analysis using NASDAQ's Guru Analysis tool, click here ABM INDUSTRIES, INC. (ABM) is a mid-cap growth stock in the Business Services industry. Company Description: ABM Industries Incorporated is a provider of integrated facility solutions. The Company is focused on the development, redevelopment, acquisition, ownership and operation of multifamily communities primarily in New England, the New York/New Jersey metro area, the Mid-Atlantic, the Pacific Northwest, and Northern and Southern California. | For a full detailed analysis using NASDAQ's Guru Analysis tool, click here ABM INDUSTRIES, INC. (ABM) is a mid-cap growth stock in the Business Services industry. Company Description: ABM Industries Incorporated is a provider of integrated facility solutions. Its services and products include aviation supply chain and parts support programs; MRO of aircraft and landing gear; design and manufacture of specialized pallets, shelters and containers; expeditionary airlift services; aircraft modifications, and aircraft and engine sales and leasing. | For a full detailed analysis using NASDAQ's Guru Analysis tool, click here ABM INDUSTRIES, INC. (ABM) is a mid-cap growth stock in the Business Services industry. Company Description: ABM Industries Incorporated is a provider of integrated facility solutions. The Company's segments include Commercial Banking, Community Banking, HSA Bank, Private Banking, and Corporate and Reconciling. | For a full detailed analysis using NASDAQ's Guru Analysis tool, click here ABM INDUSTRIES, INC. (ABM) is a mid-cap growth stock in the Business Services industry. Company Description: ABM Industries Incorporated is a provider of integrated facility solutions. The Company provides a range of products and solutions that support payment products, which customers can offer to their cardholders. |
29367.0 | 2020-02-24 00:00:00 UTC | Interesting ABM Put And Call Options For October 16th | ABM | https://www.nasdaq.com/articles/interesting-abm-put-and-call-options-for-october-16th-2020-02-24 | nan | nan | Investors in ABM Industries, Inc. (Symbol: ABM) saw new options begin trading today, for the October 16th expiration. One of the key data points that goes into the price an option buyer is willing to pay, is the time value, so with 235 days until expiration the newly trading contracts represent a possible opportunity for sellers of puts or calls to achieve a higher premium than would be available for the contracts with a closer expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABM options chain for the new October 16th contracts and identified one put and one call contract of particular interest.
The put contract at the $35.00 strike price has a current bid of $2.60. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $35.00, but will also collect the premium, putting the cost basis of the shares at $32.40 (before broker commissions). To an investor already interested in purchasing shares of ABM, that could represent an attractive alternative to paying $36.98/share today.
Because the $35.00 strike represents an approximate 5% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 65%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 7.43% return on the cash commitment, or 11.54% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for ABM Industries, Inc., and highlighting in green where the $35.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $40.00 strike price has a current bid of $2.10. If an investor was to purchase shares of ABM stock at the current price level of $36.98/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $40.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 13.85% if the stock gets called away at the October 16th expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if ABM shares really soar, which is why looking at the trailing twelve month trading history for ABM Industries, Inc., as well as studying the business fundamentals becomes important. Below is a chart showing ABM's trailing twelve month trading history, with the $40.00 strike highlighted in red:
Considering the fact that the $40.00 strike represents an approximate 8% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 62%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 5.68% boost of extra return to the investor, or 8.82% annualized, which we refer to as the YieldBoost.
The implied volatility in the put contract example is 38%, while the implied volatility in the call contract example is 32%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 251 trading day closing values as well as today's price of $36.98) to be 25%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Below is a chart showing ABM's trailing twelve month trading history, with the $40.00 strike highlighted in red: Considering the fact that the $40.00 strike represents an approximate 8% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in ABM Industries, Inc. (Symbol: ABM) saw new options begin trading today, for the October 16th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABM options chain for the new October 16th contracts and identified one put and one call contract of particular interest. | Below is a chart showing ABM's trailing twelve month trading history, with the $40.00 strike highlighted in red: Considering the fact that the $40.00 strike represents an approximate 8% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in ABM Industries, Inc. (Symbol: ABM) saw new options begin trading today, for the October 16th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABM options chain for the new October 16th contracts and identified one put and one call contract of particular interest. | Below is a chart showing the trailing twelve month trading history for ABM Industries, Inc., and highlighting in green where the $35.00 strike is located relative to that history: Turning to the calls side of the option chain, the call contract at the $40.00 strike price has a current bid of $2.10. Below is a chart showing ABM's trailing twelve month trading history, with the $40.00 strike highlighted in red: Considering the fact that the $40.00 strike represents an approximate 8% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in ABM Industries, Inc. (Symbol: ABM) saw new options begin trading today, for the October 16th expiration. | At Stock Options Channel, our YieldBoost formula has looked up and down the ABM options chain for the new October 16th contracts and identified one put and one call contract of particular interest. Below is a chart showing ABM's trailing twelve month trading history, with the $40.00 strike highlighted in red: Considering the fact that the $40.00 strike represents an approximate 8% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in ABM Industries, Inc. (Symbol: ABM) saw new options begin trading today, for the October 16th expiration. |
29368.0 | 2019-12-27 00:00:00 UTC | Ex-Dividend Reminder: Republic Services, ABM Industries and ESCO Technologies | ABM | https://www.nasdaq.com/articles/ex-dividend-reminder%3A-republic-services-abm-industries-and-esco-technologies-2019-12-27 | nan | nan | Looking at the universe of stocks we cover at Dividend Channel, on 12/31/19, Republic Services Inc (Symbol: RSG), ABM Industries, Inc. (Symbol: ABM), and ESCO Technologies, Inc. (Symbol: ESE) will all trade ex-dividend for their respective upcoming dividends. Republic Services Inc will pay its quarterly dividend of $0.405 on 1/15/20, ABM Industries, Inc. will pay its quarterly dividend of $0.185 on 2/3/20, and ESCO Technologies, Inc. will pay its quarterly dividend of $0.08 on 1/17/20. As a percentage of RSG's recent stock price of $89.59, this dividend works out to approximately 0.45%, so look for shares of Republic Services Inc to trade 0.45% lower — all else being equal — when RSG shares open for trading on 12/31/19. Similarly, investors should look for ABM to open 0.48% lower in price and for ESE to open 0.09% lower, all else being equal.
When an S&P 1500 component reaches 20 years of dividend increases, it becomes a contender to join the elite "Dividend Aristocrats" index. Republic Services Inc (Symbol: RSG) is a "future dividend aristocrats contender," with 16+ years of increases.
Below are dividend history charts for RSG, ABM, and ESE, showing historical dividends prior to the most recent ones declared.
Republic Services Inc (Symbol: RSG):
ABM Industries, Inc. (Symbol: ABM):
ESCO Technologies, Inc. (Symbol: ESE):
In general, dividends are not always predictable, following the ups and downs of company profits over time. Therefore, a good first due diligence step in forming an expectation of annual yield going forward, is looking at the history above, for a sense of stability over time. This can help in judging whether the most recent dividends from these companies are likely to continue. If they do continue, the current estimated yields on annualized basis would be 1.81% for Republic Services Inc, 1.91% for ABM Industries, Inc., and 0.35% for ESCO Technologies, Inc..
In Friday trading, Republic Services Inc shares are currently trading flat, ABM Industries, Inc. shares are up about 0.2%, and ESCO Technologies, Inc. shares are up about 0.4% on the day.
Click here to learn which 25 S.A.F.E. dividend stocks should be on your radar screen »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | If they do continue, the current estimated yields on annualized basis would be 1.81% for Republic Services Inc, 1.91% for ABM Industries, Inc., and 0.35% for ESCO Technologies, Inc.. Looking at the universe of stocks we cover at Dividend Channel, on 12/31/19, Republic Services Inc (Symbol: RSG), ABM Industries, Inc. (Symbol: ABM), and ESCO Technologies, Inc. (Symbol: ESE) will all trade ex-dividend for their respective upcoming dividends. Republic Services Inc will pay its quarterly dividend of $0.405 on 1/15/20, ABM Industries, Inc. will pay its quarterly dividend of $0.185 on 2/3/20, and ESCO Technologies, Inc. will pay its quarterly dividend of $0.08 on 1/17/20. | Looking at the universe of stocks we cover at Dividend Channel, on 12/31/19, Republic Services Inc (Symbol: RSG), ABM Industries, Inc. (Symbol: ABM), and ESCO Technologies, Inc. (Symbol: ESE) will all trade ex-dividend for their respective upcoming dividends. Republic Services Inc will pay its quarterly dividend of $0.405 on 1/15/20, ABM Industries, Inc. will pay its quarterly dividend of $0.185 on 2/3/20, and ESCO Technologies, Inc. will pay its quarterly dividend of $0.08 on 1/17/20. Republic Services Inc (Symbol: RSG): ABM Industries, Inc. (Symbol: ABM): ESCO Technologies, Inc. (Symbol: ESE): In general, dividends are not always predictable, following the ups and downs of company profits over time. | Looking at the universe of stocks we cover at Dividend Channel, on 12/31/19, Republic Services Inc (Symbol: RSG), ABM Industries, Inc. (Symbol: ABM), and ESCO Technologies, Inc. (Symbol: ESE) will all trade ex-dividend for their respective upcoming dividends. Republic Services Inc will pay its quarterly dividend of $0.405 on 1/15/20, ABM Industries, Inc. will pay its quarterly dividend of $0.185 on 2/3/20, and ESCO Technologies, Inc. will pay its quarterly dividend of $0.08 on 1/17/20. Republic Services Inc (Symbol: RSG): ABM Industries, Inc. (Symbol: ABM): ESCO Technologies, Inc. (Symbol: ESE): In general, dividends are not always predictable, following the ups and downs of company profits over time. | Looking at the universe of stocks we cover at Dividend Channel, on 12/31/19, Republic Services Inc (Symbol: RSG), ABM Industries, Inc. (Symbol: ABM), and ESCO Technologies, Inc. (Symbol: ESE) will all trade ex-dividend for their respective upcoming dividends. If they do continue, the current estimated yields on annualized basis would be 1.81% for Republic Services Inc, 1.91% for ABM Industries, Inc., and 0.35% for ESCO Technologies, Inc.. Republic Services Inc will pay its quarterly dividend of $0.405 on 1/15/20, ABM Industries, Inc. will pay its quarterly dividend of $0.185 on 2/3/20, and ESCO Technologies, Inc. will pay its quarterly dividend of $0.08 on 1/17/20. |
29369.0 | 2019-12-19 00:00:00 UTC | ABM Industries Inc (ABM) Q4 2019 Earnings Call Transcript | ABM | https://www.nasdaq.com/articles/abm-industries-inc-abm-q4-2019-earnings-call-transcript-2019-12-19 | nan | nan | Image source: The Motley Fool.
ABM Industries Inc (NYSE: ABM)
Q4 2019 Earnings Call
Dec 19, 2019, 8:30 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Greetings. Welcome to ABM Industries' Fourth Quarter and Full Year 2019 Earnings Call. [Operator Instructions] Please note this conference is being recorded.
At this time, I'll turn the conference over to your host, Susie Choi. Ms. Choi, you may now begin.
Susie A. Choi -- Vice President of Investor Relations & Treasurer
Thank you all for joining us this morning. With us today are Scott Salmirs, our President and Chief Executive Officer and Anthony Scaglione, Executive Vice President and Chief Financial Officer.
We issued our press release yesterday afternoon announcing our fourth quarter and fiscal 2019 financial results. A copy of this release and an accompanying slide presentation can be found on our corporate website.
Before we begin, I would like to remind you that our call and presentation today contain predictions, estimates and other forward-looking statements. Our use of the words estimate, expect and similar expressions are intended to identify these statements. These statements represent our current judgment of what the future holds.
While we believe them to be reasonable, these statements are subject to risks and uncertainties that could cause our actual results to differ materially. These factors are described in the slide that accompanies our presentation as well as in our filings with the SEC.
During the course of this call, certain non-GAAP financial information will be presented. A reconciliation of those numbers to GAAP financial measures is available at the end of the presentation and on the Company's website under the Investor tab.
I would now like to turn the call over to Scott.
Scott Salmirs -- President and Chief Executive Officer
Thanks, Susie, and thank you all for joining us this morning as we discuss our fourth quarter and full year results as well as our outlook for 2020. Our performance during the fourth quarter represented another period of progress as we reported $1.6 billion of revenue and higher GAAP and adjusted EPS of $0.71 a share and $0.66 a share respectively compared to last year.
We also expanded adjusted EBITDA margins 10 basis points to 5.6%. This performance enabled us to meet our full year guidance across our key metrics and with and without the impact of the ASCs 606 and 853. Total full year revenues was $6.5 billion, as we completed a record $1 billion in new sales bookings. This helped to offset our discerning approach to retention and repricing of existing work and allowed us to land at 1.6% organic growth. Our GAAP continuing EPS was $1.91 a share or $2.05 a share on an adjusted basis and our adjusted EBITDA margin was 5.2% for the year. We also generated $200 million in free cash flow and ended the year with leverage of 2.8 times, which hit our target range of below 3 times.
Operational highlights include the sustained robust pipeline within our Technical Solutions Group as they achieved outstanding growth of 26% for the quarter and 19% for the year. I would urge you all to visit our IR homepage and see firsthand the work they did for the renowned Griffith Observatory in Los Angeles, a super-complex project we recently finished.
Business & Industry also demonstrated continued strength by expanding margins while navigating, and in many instances, absorbing the effects of a still unfavorable wage environment, given where the labor markets remain. In addition to the work our B&I team is adding in their core office market, they are winning work at some exciting sports venues as well.
During the quarter, we started engineering and maintenance work at the Chase Center in San Francisco, the brand new home of the Golden State Warriors. The venue is expected to host 200 events every year and ABM was there to support its first concert ever, as well as the Warriors' first home game. I only point that out because opening that arena is such a trusted decision and critical to the impression it will make.
The quarter's results saw our technology and manufacturing segment performing as planned, and keeping with their solid full year performance. Our Education and Aviation segments continues to be pressured from the labor markets more than any of our groups, as they have the highest proportion of both non-union and lower wage team members and the greatest staffing variability due to seasonality with holiday travel and aviation and the cycling of semesters and recesses in education. All the factors we have been discussing with you over the past quarters.
Anthony will take you through a deeper discussion of segment performance in financials, but I'd like to put our overall results in perspective for a moment, given we are now through fiscal year 2019. We first announced our 2020 Vision strategy in late 2015, which began a multi-year transformational journey for the entire firm.
At that time, our revenues were $4.9 billion; our adjusted EBITDA margins were 3.8%; and adjusted EPS was a $1.62 per share.
In four years, we've grown revenues by more than 30% organically and acquisitively; expanded margins by roughly 40% and increased earnings by nearly 30%. The structural changes to our business as part of our 2020 Vision strategy provided a springboard for these results.
Our organizational realignment from a siloed and regionally autonomous structure to a centralized industry-focused operational framework has enabled us to pursue and achieve greater operating leverage. In conjunction with implementing our industry group structure, we created a formal Procurement division to further leverage our scale.
To date we've achieved more than $50 million in savings and deferred increasing costs across our direct, indirect and the subcontractor spend. And supporting our 140,000 employees and our literally thousands of clients is our enterprise shared services center.
We centralized the work of 14 nationally distributed accounting centers and today the shared service center handles more than 4,000 journal entries, manages more than 30,000 client invoices and processes 80,000 payments every single month. We are so proud that this group was stood up and is high-functioning in such a short period of time.
Another aspect of our 2020 Vision was accelerating standard operating practices known as the ABM Way. Over the years, our key areas of focus have included sales, strategic account management and labor management. While we've made progress, these are areas where we are investing to accelerate further, including bringing on a new Head of Strategy and Transformation, which I'll discuss in a minute.
We've made significant progress in some of these areas, as demonstrated by creation of our new sales organization as well as through the institution of weekly operating reviews to manage labor with more agility. This year's performance in both technical solutions and B&I are great examples of how best practices and standardization can yield results.
But in order to truly capture the full potential of our size and scale, we must continue to deepen the reach of the ABM Way across more areas of the enterprise. It will be critical to our growth and achieving our long-term target of 5.5% to 6% adjusted EBITDA margins. This is why we will continue to focus on investing and enable us to win on growth and productivity.
Our primary areas of focus will be to optimize revenue management, increase client retention, improve labor management through process and technology and reinforcing team members as our competitive advantage. We will build upon our strong sales momentum by adding salespeople and investing in the continued professionalization of our sales approach.
Our plans also include corporate investments in our HR structure to centralized and standardized hiring, on-boarding and training practices. We will also leverage next-gen data platforms to modernize our infrastructure and accelerate our technology and digital capabilities.
During the quarter, we announced some key leadership changes that underscore our commitment to aligning our organizational structure with our strategic priorities. Scott Giacobbe, previously our Chief Operating Officer, is now our Chief Revenue Officer and is responsible for all revenue generating functions to drive growth, including sales and marketing and continued oversight of our Technical Solutions Group.
Rene Jacobsen, previously the president of B&I has been named Chief Facility Services Officer and will continue to be responsible for B&I but also add Aviation, Education and Technology & Manufacturing. In the current operating environment, it's necessary to create a focused effort to drive both organic growth while expanding segment margins through acute operational attention.
But Scott and Rene have been instrumental in formulating our strategies on these fronts, and I believe their new roles will lead to even greater contributions. We also recently announced the addition of Josh Feinberg to ABM as our Chief Strategy and Transformation Officer.
Josh joins us from the Boston Consulting Group. He was part of the original consulting team that helped develop our 2020 Vision architecture back in 2015. At BCG, he has worked with over 30 different service companies across a variety of businesses and his deep experience will be valuable as we focus on where we compete and how we will continue to win, particularly as we explore both organic and acquisitive investments.
Josh, Rene and Scott will be working closely together to advance the ABM Way. Looking ahead, the midpoint of our guidance does not exhibit our historical year-over-year expansion rate. Our guidance incorporates the lower pull-through of revenue into this year as a result of our retention in 2019. This magnifies the impact of a higher cost model due to the continued investments in sales, HR, and IT that we believe are essential to achieving greater growth and higher operating leverage in the future. And based on what we've seen all year, we continue to believe the operating environment will remain labor challenged in the foreseeable future.
As a result, we took a responsible approach to setting our guidance. Once we make it through this next cycle and we complete our core investments, we expect to return to double-digit EPS growth in 2021. So while our balanced results in 2019 serve as a reminder of where we were just a few years ago, our acceleration work continues with vigor [Phonetic] and passion. I want to thank our team members for getting ABM to this point and helping us fulfill our short and long-term goals.
I would also like to thank our Board, including our newest Director Jill Golder as well as our analysts and shareholders for supporting our strategies as we seek to unlock greater value. It's clear that ABM has a proven track record of achievement regardless of the macroeconomic environment and I'm confident our diversified business model will thrive even more with our continued evolution, Anthony?
Anthony Scaglione -- Chief Financial Officer
Thank you, Scott, and good morning everyone. It is indeed hard to believe that 2020 is already upon. We have made such important progress since our journey just a few short years ago. Today, we are a stronger company and our position as a leading facility service provider is unparalleled. I'm extremely proud of our team members and I look forward to the next phase of our evolution.
Now, onto the results. Throughout 2019, we've seen various impacts from the adoption of ASC 606 and 853. Lower revenues of approximately $12.5 million for the quarter and $48.6 million for the year associated with ASC 853 related to service concession arrangement primarily reflected in our aviation segment.
The deferral of profit on uninstalled materials associated with our Technical Solutions project work was approximately $1.3 million for the quarter and approximately $0.5 million for the year. Sales commission costs did not have a material impact during the quarter, but had approximately $6.7 million impact for the year due primarily to the exceptional growth we have seen from our Technical Solutions segment all year.
For the fourth quarter, total revenues were $1.6 billion, reflecting organic growth of 0.6%, excluding the adoption of ASC 853 and 606. Organic growth was primarily driven by the Technical Solutions segment during the quarter. Overall revenue also reflects the impact of our decision to exit lower margin contracts and other contract losses.
On a GAAP basis, our income from continuing operations was $48.1 million or $0.71 per diluted share compared to $8.9 million or $0.13 last year. This quarter's results reflect a $5.4 million benefit from prior year self-insurance adjustments. The second consecutive quarter where we have seen a favorable impact.
Safety and risk was among our key areas of focus when we launched our 2020 Vision transformation and I'm pleased to see continued progress in this area. And as a reminder, last year's results reflect a $26.5 million non-cash impairment charge related to our Technical Solutions segment in the UK.
On an adjusted basis, income from continuing operations for the quarter was $44.7 million or $0.66 per diluted share, an increase of 15.2% compared to last year. On both a GAAP and adjusted basis, our results reflect higher revenue contribution from the Technical Solutions segment and higher overall segment margin mix, including the benefits of improved labor management primarily within the Business & Industry segment. During the quarter, we generated adjusted EBITDA of $93 million at a margin rate of 5.6% compared to approximately $90 million at a rate of 5.5% last year.
I'll now turn to our segment results, which are described on Slide 16 of today's presentation. Please keep in mind, with the exception of Technical Solutions topline results across our industry groups reflect the exiting of underperforming contracts and other retention losses from -- throughout this year.
B&I reported revenues of $807 million and operating profit of $51.1 million or a margin of 6.3%. During the quarter, B&I continue to overcome some of their lost business by pursuing expansions of key national accounts, a strategy where we continuing to gain traction.
Tag during the quarter also performed well, driven by new and repair construction in the Northeast as well as certain project at various sports venues. For the full year, B&I delivered operating margins of 5.6% compared to 4.8% last year.
B&I has been a strong example of how the keen focus on labor management along with optimizing our reporting analytics has had a material impact on our operations and results. Standard operating practices, such as weekly labor reviews and strategic account management have driven solid performance improvements this year.
Aviation reported revenues of $251 million, which reflect a $12 million negative impact from contra-revenue associated with ASC 853. While this segment has performed below our expectations, our two-tiered approach of diversifying service offerings and expanding opportunities with low cost and regional carriers continued during the quarter and is beginning to take hold.
We also recently announced growing fueling partnerships with United Airlines and JetBlue in the US. Internationally, we continue to expand business with carriers such as Ryanair. These efforts contributed to Aviation's positive organic growth for the full year.
Operating profit for the quarter was $3.9 million compared to $2.6 million last year. For the full year, aviation ended with an operating margin of 2.1% as we continue to overcome persistent labor-related challenges.
Moving forward, our teams are working toward our goal to expand margins in 2020, as we will anniversary some key losses from 2019, while continuing to target under-performing contracts; monitoring in-sourcing and outsourcing trends across the Aviation industry; as well as understanding infrastructure improvements and expansion trends across national airports will be key to our future strategic direction.
Moving to the Technology & Manufacturing; T&M reported revenues of approximately $230 million for the quarter versus $234 million last year. Operating profit was $18.1 million versus $17.5 million last year or a margin rate of 7.9% this year compared to 7.5% last year. In addition to expansions with high tech and logistic business expansions, manufacturing client specializing food [Phonetic] production and aerospace contributed to revenues during the quarter.
For the year, operating margins were 7.9%. Moving forward, we are looking to mimic some of the practices we have instilled into B&I segment to expand with strategic accounts, while also pursuing increasing efficiencies through labor productivity and tags.
Revenue in Education was $214 million with operating profit of $5.6 million or 2.6% margin. For the year, Education's operating margin was 4.6%. Education's results reflect the impact of the more rational pricing approach we took during the most recent buying season.
Similar to our expectations for aviation, we are planning for margin expansion within Education in 2020 as our new go-to-market strategy is bundling technical solutions, driven energy programs with custodial, groundskeeping and maintenance work will go into effect. We are excited about the new sales strategy and the value proposition we can bring to our clients.
Lastly, Technical Solutions reported revenues of $175.5 million a year-over-year increase of 25.5% for the quarter. Operating profit was $20.1 million or a margin rate of 11% compared to a loss of $7 million last year. Again, last year's results reflect a $26.5 million impairment charge related to our UK business.
Growth during the quarter, both from a top line and bottom line perspective, continue to be driven by core projects, building energy solution projects, and EV charging wins. Full-year operating margins came in at 9.3%. Margins in this segment continue to be the highest across all of our portfolio and we are very excited about our future as we continue to win in both the private and public sector.
Our project backlog is down from a historic high at the end of Q3, but ended the year up more than 50% on a year-over-year basis. We are committed to continue investing in this business both organically through additional sales people as well as through opportunistic M&A.
Turning to cash and liquidity, cash flow from operations was approximately $149 million for Q4. As I've discussed throughout 2019, we have been experiencing higher working capital needs for some of our expansion clients and our AR balances in aviation were higher than expected due to billing reconciliations throughout the year.
However, our teams remain committed to our year-end goals and pushed during the fourth quarter to overcome some of these challenges with a focus on collections, which led to a sequential DSO improvement of 2 days. We also benefited from timing related to payables. This combination led to annual free cash flow of over $200 million.
We ended the quarter with total debt, including standby letters of credit of approximately $966 million and a bank-adjusted leverage ratio of 2.8 times. I am pleased with how we have achieved our target leverage range of 2.5 times to 3 times in two short years following our GCA acquisition and in line with our long-term target we established with our 2020 Vision. We consider this an optimal range that allows us to remain flexible in our capital allocation strategy.
During the quarter, we paid a quarterly cash dividend of $0.18 per common share for a total distribution of $12 million to stockholders. And I'm pleased to report that our Board has approved our quarterly dividend increase to $0.185. In addition, as part of our long-standing commitment to return value to shareholders, our Board has authorized a new share repurchase program of $150 million, as stated in our press release.
Now, for a quick recap of our annual results. Total revenues were approximately $6.5 billion, an increase of $56.4 million versus last year. The increase in revenues was attributable to organic growth of approximately 1.6%, which excludes an unfavorable impact of $47.6 million due to ASC 606 and 853. Organic growth was driven by our US Technical Solutions and Aviation businesses, offsetting lower retention across all other industry groups.
Our GAAP income from continuing operations for fiscal 2019 was $127.5 million or $1.91 per diluted share. On an adjusted basis, income from continuing operations for the year was $137.2 million or $2.05 per diluted share. Adjusted EBITDA for the year grew to approximately $340 million and we ended the fiscal year with an adjusted EBITDA margin of 5.2%.
Now turning to our guidance outlook. We are introducing a fiscal 2020 GAAP guidance outlook range of $1.65 to $1.85, and on an adjusted basis $1.90 to $2.10 per share. Although we previewed many of the dynamic that will contribute to our 2020 expectations during our third quarter call, I like to expand on our assumptions a bit further.
In 2019, we saw roughly $0.09 positive impact as a result from our adoption of the new revenue recognition standards ASC 606 and ASC 853 primarily related to the deferral of commission that were previously expensed when incurred. We do not expect this to repeat in 2020.
While we do not give specific revenue guidance, our outlook for 2020 contemplates the same operating environment as we experienced in 2019 and the annualized effect of contract losses from this past year. We have remained disciplined in our expansion efforts and I commend the team for taking a longer-term view for a healthier business mix.
As a result, the midpoint of our guidance assumes muted growth for the full year, with the first half of the year exhibiting a higher comparability impact due to a greater degree of contract losses from later in fiscal 2019. As a result, we expect the cadence of earnings will be more back-half weighted than we saw in 2019, given the timing of losses as well as the shift in working days in Q2 and Q4.
Q2 will see an extra working day while Q4 will see one less day, each working day has historically represented roughly $7 million of labor expense. Additionally, our guidance does not include any potential share repurchase activity, which we will balance against market conditions, liquidity and investments.
Adjusted EBITDA margins are expected to be in the range of 5% to 5.2%, reflecting the aforementioned pull through impact of revenue and higher corporate expenses related to our HR operating model change in addition to ongoing investments in our IT infrastructure. We'll also invest in salespeople and strategic account manager across all of our industry groups.
As it relates to IT, let me provide an update on our ERP implementation. I'm pleased to share that we went live in Canada this month. It is very early as we are still closing the month on our legacy systems, given the timing of the launch. But data is currently being transferred and we'll start operating from the system in Canada fully over the next coming weeks.
The UK and Canadian implementations mark the decommissioning of our legacy ERP. In the US, which is our largest and most complex operating base, we continue with our implementation and like to expand upon that a bit. The complexity in the US conversions includes not only replacing our core financial systems like we did in the UK and Canada, but also ensuring all of our boundary applications such as payroll, work orders and time and attendance are configured correctly and set up to drive the productivity and enhancements we are envisioning.
We are also managing our overall cost and expenses prudently and currently continue to be in line with the year-over-year increase I mentioned on previous calls. While we continue to work toward the US implementation in 2020 that will yield enhanced functionality, we will not rush to go live.
Moving to taxes, we expect our 2020 tax rate to be approximately 30%. This rate excludes discrete tax items such as the work opportunity tax credits and the tax impact of stock-based compensation awards, which we currently expect will be approximately $7 million for 2020 compared to approximately $8 million in fiscal ' 19. More specifically, we are assuming a roughly $0.10 impact to guidance compared to $0.12 impact in fiscal 2018. We also expect cash taxes to be higher in 2020 compared to 2019, given the full utilization of net operating loss and credit carry overs in 2019.
Capital expenditures in fiscal 2020 are anticipated to be between $45 million to $55 million and we expect depreciation of $50 million to $55 million. Due to some of the aforementioned factors, we are guiding to free cash flow of approximately $175 million plus or minus any related to working capital needs.
Finally, with the investments we have made and our continued disciplined approach, we expect our segment operating margins to hold or even expand in many areas. Ultimately, once we navigate the upcoming year, we expect to see a measurable impact to both our operational and corporate results in 2021 and beyond.
Operator, we are now ready for questions.
Questions and Answers:
Operator
Thank you. At this time, we'll be conducting a question-and-answer session. [Operator Instructions] Thank you. Our first question is from the line of Sam Kusswurm with William Blair. Please proceed with your question.
Sam Kusswurm -- William Blair -- Analyst
Hey guys, how's it going?
Scott Salmirs -- President and Chief Executive Officer
Good morning.
Anthony Scaglione -- Chief Financial Officer
Good morning.
Sam Kusswurm -- William Blair -- Analyst
Now that you're almost two months into fiscal 2020 I was hoping you're able to go into your estimate for new sales growth this year.
Scott Salmirs -- President and Chief Executive Officer
So, first, we don't obviously give revenue guidance, but from a sales perspective, we're really optimistic we crossed over the $1 billion mark this year. And if you would ask me two or three years ago if that was possible, it would have been such a stretched target.
So we've now set that as the benchmark. We continue to add in salespeople and we see our new sales booking in the high single-digit area and really enthusiastic about even what we're seeing at the start of the New Year in our pipeline, so you know, thumbs up in that area for us.
Sam Kusswurm -- William Blair -- Analyst
Awesome. Are there any particular end markets or geographies that are having an outsized impact on that new sales?
Scott Salmirs -- President and Chief Executive Officer
Look, we always strive for across the board and we allocate resources accordingly. But ATS will continue to be strong for us. And if you think about the dynamics in that end market, right, with sustainability and energy, it's where we have our largest proportion of sales people. And you know, look at this year, right, I mean, we're not necessarily expecting to replicate what we did this year, but we were -- as we said in the release, we're over [Phonetic] 19% growth for the year. So we're really optimistic about the ATS market.
Sam Kusswurm -- William Blair -- Analyst
Excellent. Well, best of luck in the next year here. Thanks.
Scott Salmirs -- President and Chief Executive Officer
Thank you.
Anthony Scaglione -- Chief Financial Officer
Thank you.
Operator
The next question is from the line of David Silver with CL King. Please proceed with your question.
David Silver -- CL King & Associates, Inc. -- Analyst
Yes, hi. I had a couple of -- well I had one question, I guess, on the adjustments and then I had a more of a strategic question. And I -- just to preface, I had to step out for a couple of minutes. I apologize if some of this was covered and I make you repeat yourself. But the last couple of quarters you've had this self-insurance adjustment of several million dollars and it's treated as an adjustment for -- analyzing the quarter's results as it applies to a previous period.
But you know it is money I think that works to your advantage. So I was just wondering if you could maybe talk about that general book of business -- book of insurance business for yourself and whether it's been looked at and whether there is significant further positive adjustments I guess over time. In other words, is that a hidden source of cash or GAAP earnings going forward?
Anthony Scaglione -- Chief Financial Officer
Great. And welcome to the team David. This is Anthony. So we're very encouraged and proud of the dedicated effort we made in both the pre and post loss management. As you know, the balance sheet amount is a highly subjective, actuarially determined amount and we look at that balance on a quarterly basis and the adjustments that you're seeing are related to the actuarial estimated long-term estimate of where those liabilities land.
So what our goal is to try to reduce the volatility both positively and negatively associated with that balance, and we're starting to see some of that volatility come down. As it relates -- and those are non-cash charges, just to be clear. These are long-term tail type liabilities.
As we look forward, there is opportunities, obviously, with the continued success that we're having on pre-loss, which is the safety side to influence the go-forward, which could result in a lower expenses on a go-forward basis, but at this time, it's too premature.
David Silver -- CL King & Associates, Inc. -- Analyst
Okay. And so, just to clarify, the $5.4 million adjustment, that's on a mark-to-market basis, that's not just one quarter analysis of the reserves that you took some time ago versus actual experience. So the $5.4 million is trueing-up your entire portfolio?
Anthony Scaglione -- Chief Financial Officer
That's true in every loss year from 2018 and prior. So [Speech overlap].
David Silver -- CL King & Associates, Inc. -- Analyst
Yes, sorry. Thank you for that. One of the -- in issuing your initial 2020 guidance, you know you cited incremental IT spending an incremental human resource spending. So on the IT side, could you, I was wondering if you could maybe characterize the incremental spending you're seeing in terms of what this spending that was originally considered part of Vision 2020 and maybe just wasn't captured through that period or is it incremental spending that may be went a little over budget tied to 2020 or is this spending that may be characterized it as a Vision 2025 program.
In other words, you're already moving beyond the targets or the functions that were captured in Vision 2020 and you're already moving beyond that you're setting your targets for IT capabilities higher. Thank you.
Anthony Scaglione -- Chief Financial Officer
Great. I'll take that question and hand it over to Scott. So, our guidance and results fully incorporate both the capex development and ongoing operating expenses associated with the subscription model. So just for context, we're moving from a primarily on-premise model to more of a cloud-based service across all of our major work streams, including HR, finance, and time and attendance.
So one of the pillars of our 2020 vision was the modernization of our IT infrastructure. And at the time when we first initially launched 2020, we realized there is a need for that IT investment. But while we were a bit higher on the development of the capex, we still remain in line with our previous estimate on savings and on an ongoing operating expense. What we probably haven't yet quantified is the full benefits that will accrue once all the systems are live and we expand that functionality.
Scott Salmirs -- President and Chief Executive Officer
Yes. And what I would just say more strategically is, for us, you think about the fact that we've been clear over time that we've under invested in this area and to bring us up to speed now and get ready for kind of the digital evolution that's happening in our business. I think it's just -- it's the right time to make the right investment, have best-in-class systems. It's really -- for us, it's going to help us leapfrog into the future.
David Silver -- CL King & Associates, Inc. -- Analyst
Okay, and then just one last question and I know you've touched on this in your prepared remarks, but the -- bringing on a person in a brand new role as the Chief Strategy and Transformation Officer. I understand that you have certain targets and he brings something to the table from his previous work with your Company.
But if we were to have this conversation may be a year from now, if we're looking out December of 2020, what one or two achievements are accomplishment measurable would you -- Scott, would you want to see from that addition to your strategy team? In other words, how should we -- what might we look at maybe an interim milestone or two to see if this strategic addition is having the desired effect on your structure and on your operations?
Scott Salmirs -- President and Chief Executive Officer
Sure. So, a couple of comments. First, you can only imagine how delighted we were to actually bring on more of the top partners of BCG to come and help us with what we're doing and I think the best way to start is like the things that he'll be working on.
One is going to be our business mix and strategy going forward, now that we're kind of coming toward the end of 2020 Vision, right. So I think he's going to be looking at the strategic direction for the firm and then managing all of the transformation that's going on at the firm between the IT systems being implemented and best practices, that's going to be a core area, but where we'll see the most foundational change quickly, I think, is in implementing best practices.
We brought on what we call the ABM Way or we call it operational excellence and taken the things that we've seen that we've been rolling out like labor management and building on that and creating form and function across all the other industry groups, hopefully we will see a tightening of some of our labor controls, labor percentages, how we schedule.
Labor is a very complicated area. It's what we do, right. And there is so many sub-work streams within labor; again how we schedule people, how you staff their job, how you source labor. So I think across those different work streams, it's going to be -- he is going to have just a foundational impact and is building a team around that. So as we go from 2020 and beyond -- again, we couldn't be more excited.
David Silver -- CL King & Associates, Inc. -- Analyst
Okay, thank you.
Operator
Our next question is from the line of Justin Hauke with Baird. Please proceed with your question.
Justin Hauke -- Robert W. Baird & Co -- Analyst
Yes. Hi, good morning. I guess I wanted to hopefully get a little bit more color around the margin expectations for 2020 and maybe you can help us get some confidence around them. So maybe just starting on the corporate line. I guess, Anthony, if you can quantify for us, what's the year-over-year delta on the spending for the IT and HR investments that you've highlighted?
Anthony Scaglione -- Chief Financial Officer
Yeah, our corporate line, overall, from an outlook perspective, is going up roughly $25 million. Of that half is going to be IT and HR related, and then the rest is going to be associated with items associated with corporate -- our stock-based compensations in corporate across the enterprise. So half of that increase is related to our IT and HR and then the other is going to be sprinkled around other corporate initiatives and developments.
Justin Hauke -- Robert W. Baird & Co -- Analyst
Okay, good. That's helpful. And then I guess for the segment guidance, I guess the two areas where maybe we'd appreciate a little bit more color on how you get there, but Aviation and Education are the two markets where you've had the most labor market pressure, the difficulty in hiring people. And in both of them, you're looking for pretty meaningful margin expansion next year.
So if you could bucket it, I know you've got a little bit less amortization expense in Education, that's going to benefit there. And you mentioned anniversarying some of the lost contracts. Maybe if you could just quantify the margin impact from those two and then how much is left from kind of the internal initiatives that you guys are launching?
Scott Salmirs -- President and Chief Executive Officer
Yes. So I'll take it in two buckets Aviation and Education. For Aviation, I think it's a -- maybe a different story than education. For aviation 2019, we were really culling the portfolio. We were looking very hard at non-performing contracts and made some tough decisions that I think will end up inuring to a higher margin and we've baked that in.
So that -- Aviation, on top of, we expect better and better operating discipline, of course you do that for every area. On top of that I think it's the business mix in terms of clients. So, we'll see a lift there.
And on the Education front, the list is really going to be -- come from our go-to-market strategy. We made a change mid-year last year about how we're going to approach the market, how we're going to be more focused on the Technical Solutions offering and how we could bundle that into our core offering of janitorial and it's early on, right.
But we are seeing some good results. We like the pipeline and we believe -- and again, in addition to the amortization and operational excellence that we're expecting, we believe the go-to-market strategy and the change that we articulated last year is going to have a meaningful impact and we're counting on that.
Justin Hauke -- Robert W. Baird & Co -- Analyst
Okay, thank you. I guess maybe my last question then here would be just on the free cash flow and the balance sheet. You guys mentioned you're kind of in your target range now. EBITDA is going to be kind of flattish next year. So you won't delever from growth and I'm just trying to think how you're thinking about allocating that free cash flow.
Is it still the priority to bring the leverage down a little bit more or is the balance sheet open enough where with the new buyback program and you talked about some M&A that that's back on the table in 2020?
Anthony Scaglione -- Chief Financial Officer
Yes, I think, Justin, our current leverage and continued strong cash flow provides really the optionality as it relates to our capital allocation strategy, allowing us the ability to look at M&A and share buybacks in In 2020, but a lot of factors are going into that. So I think you'll see a continued focus on deleveraging with the optionality for share buyback. And if our opportunistic M&A presents itself, we have that ability as well.
Justin Hauke -- Robert W. Baird & Co -- Analyst
Okay, great. Thanks. That's all helpful.
Scott Salmirs -- President and Chief Executive Officer
Thanks.
Operator
Our next question is from the line of Marc Riddick with Sidoti & Company. Please proceed with your question.
Marc Riddick -- Sidoti & Company. -- Analyst
Hi, good morning.
Scott Salmirs -- President and Chief Executive Officer
Good morning, Mark.
Marc Riddick -- Sidoti & Company. -- Analyst
Just wanted to sort of follow-up on the back of that and sort of maybe talk about the potential acquisition target areas or whether or not that's something that you've already begun to embark on and how should -- we should be thinking about where those priorities may lie? Thanks.
Scott Salmirs -- President and Chief Executive Officer
Sure. It's good question. So we've talked in the past about the fact that we were going to start targeting some of the ATS segments like Energy and Sustainability and Power and we're going to continue to look at that.
I think having Josh come on now as our Head of Strategy is going to help us to be more focused and refined in terms of M&A approach. Whether it's -- whether it is acquisitive or even organically. So M&A is a lever that we have the ability to pull and just to be clear, aside from the focus on ATS and sustainability, we will have the opportunity to do synergistic transactions in our core.
We wouldn't shy away from that as well, if it made financial sense. So I think for us, we just -- for us, it's all about being purposeful and playing into the strategy that we set forward. But definitely something that we can leverage in 2020.
Marc Riddick -- Sidoti & Company. -- Analyst
Okay, great. Thank you very much.
Scott Salmirs -- President and Chief Executive Officer
Thanks, Mark.
Operator
Our next question is from the line of Tate Sullivan with Maxim Group. Please proceed with your question.
Tate Sullivan -- Maxim Group -- Analyst
Hi, thank you. A couple of follow ups. Anthony, first on the interest expense guidance for fiscal '20. I mean, just making sure I have it right $45 million to $50 million, down slightly from fiscal '19 and that's after a meaningful pay down of debt in the last quarter. Are there other -- does that imply less of a debt pay down, based on your previous comments on receivables in Aviation maybe or can you give more context to that please?
Anthony Scaglione -- Chief Financial Officer
Yes, it's in line with our expectations. If you look at our composition of our debt, the proportion that's fixed at a higher interest rate as well as the proportion that's floating and our expectations of where we see the interest rate curve based on market conditions. That's how we come up with our interest expense. But it's all in line with our deleveraging profile as well as our outlook for cash flow and the timing of cash flow.
Tate Sullivan -- Maxim Group -- Analyst
Okay, and thank you. Next, what has to -- I apologize if I missed this, what changes in fiscal year '20 to get to double-digit EPS growth in fiscal '21?
Anthony Scaglione -- Chief Financial Officer
So, for us, it's about getting back to historical growth rate averages, right. We talked about '20 being kind of more of a muted growth. So once we get back to our historical growth rate, once we get back to historical retention rate, there is absolutely no reason why we won't be double-digit EPS going forward.
Tate Sullivan -- Maxim Group -- Analyst
Great, thank you. In terms of, you mentioned a bit on healthcare and you moved it, I think it was last quarter or the previous quarter. The healthcare and the B&I, was that still somewhat of a drag in the most recent quarter and could that be a drag from lost contracts in fiscal year '20?
Scott Salmirs -- President and Chief Executive Officer
No, no, actually surprisingly, it's performing well. It's -- now that it's in B&I and it's getting some of the operating leverage of our branch network and the proximity of the ABM B&I offices to where our healthcare assignments are we're actually seeing that as a nice little surprising uplift. So we're pretty excited about that move, it's worked out.
Tate Sullivan -- Maxim Group -- Analyst
Okay, thank you. And last from me, and thanks for the detail. I thought I heard that you mentioned a corporate line item increase and I saw the press release comment and for a previous question on IT and HR increases, but could you quantify the increase, I missed that. Please.
Scott Salmirs -- President and Chief Executive Officer
Yes, I quantified it earlier. Year-over-year, we're expecting overall $25 million increase in corporate line item. Half of which is going to be in that IT, HR investment.
Tate Sullivan -- Maxim Group -- Analyst
$25 million, OK. Thank you very much. Have a good rest of the day.
Scott Salmirs -- President and Chief Executive Officer
Thank you.
Operator
Thank you. I will now turn the call back to management.
Scott Salmirs -- President and Chief Executive Officer
Okay. Well, thanks everyone. I just wanted to close out this fiscal year with a big thank you to not only our management team but everyone on this call who has had an interest in following us and participate in this journey.
And hope everyone has a happy and healthy holiday season with family and friends. And look forward to being back in the first quarter to update you on the progress and all the excitement that we have here at ABM about the future. We just couldn't be more pumped up. So enjoy and be safe. Thank you.
Operator
[Operator Closing Remarks]
Duration: 47 minutes
Call participants:
Susie A. Choi -- Vice President of Investor Relations & Treasurer
Scott Salmirs -- President and Chief Executive Officer
Anthony Scaglione -- Chief Financial Officer
Sam Kusswurm -- William Blair -- Analyst
David Silver -- CL King & Associates, Inc. -- Analyst
Justin Hauke -- Robert W. Baird & Co -- Analyst
Marc Riddick -- Sidoti & Company. -- Analyst
Tate Sullivan -- Maxim Group -- Analyst
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | ABM Industries Inc (NYSE: ABM) Q4 2019 Earnings Call Dec 19, 2019, 8:30 a.m. Welcome to ABM Industries' Fourth Quarter and Full Year 2019 Earnings Call. The venue is expected to host 200 events every year and ABM was there to support its first concert ever, as well as the Warriors' first home game. | ABM Industries Inc (NYSE: ABM) Q4 2019 Earnings Call Dec 19, 2019, 8:30 a.m. Welcome to ABM Industries' Fourth Quarter and Full Year 2019 Earnings Call. The venue is expected to host 200 events every year and ABM was there to support its first concert ever, as well as the Warriors' first home game. | ABM Industries Inc (NYSE: ABM) Q4 2019 Earnings Call Dec 19, 2019, 8:30 a.m. Welcome to ABM Industries' Fourth Quarter and Full Year 2019 Earnings Call. The venue is expected to host 200 events every year and ABM was there to support its first concert ever, as well as the Warriors' first home game. | ABM Industries Inc (NYSE: ABM) Q4 2019 Earnings Call Dec 19, 2019, 8:30 a.m. Welcome to ABM Industries' Fourth Quarter and Full Year 2019 Earnings Call. The venue is expected to host 200 events every year and ABM was there to support its first concert ever, as well as the Warriors' first home game. |
29370.0 | 2019-12-13 00:00:00 UTC | ABM Makes Notable Cross Below Critical Moving Average | ABM | https://www.nasdaq.com/articles/abm-makes-notable-cross-below-critical-moving-average-2019-12-13 | nan | nan | In trading on Friday, shares of ABM Industries, Inc. (Symbol: ABM) crossed below their 200 day moving average of $37.70, changing hands as low as $36.87 per share. ABM Industries, Inc. shares are currently trading down about 2.6% on the day. The chart below shows the one year performance of ABM shares, versus its 200 day moving average:
Looking at the chart above, ABM's low point in its 52 week range is $25.64 per share, with $42.67 as the 52 week high point — that compares with a last trade of $36.96.
Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In trading on Friday, shares of ABM Industries, Inc. (Symbol: ABM) crossed below their 200 day moving average of $37.70, changing hands as low as $36.87 per share. The chart below shows the one year performance of ABM shares, versus its 200 day moving average: Looking at the chart above, ABM's low point in its 52 week range is $25.64 per share, with $42.67 as the 52 week high point — that compares with a last trade of $36.96. ABM Industries, Inc. shares are currently trading down about 2.6% on the day. | In trading on Friday, shares of ABM Industries, Inc. (Symbol: ABM) crossed below their 200 day moving average of $37.70, changing hands as low as $36.87 per share. The chart below shows the one year performance of ABM shares, versus its 200 day moving average: Looking at the chart above, ABM's low point in its 52 week range is $25.64 per share, with $42.67 as the 52 week high point — that compares with a last trade of $36.96. ABM Industries, Inc. shares are currently trading down about 2.6% on the day. | In trading on Friday, shares of ABM Industries, Inc. (Symbol: ABM) crossed below their 200 day moving average of $37.70, changing hands as low as $36.87 per share. The chart below shows the one year performance of ABM shares, versus its 200 day moving average: Looking at the chart above, ABM's low point in its 52 week range is $25.64 per share, with $42.67 as the 52 week high point — that compares with a last trade of $36.96. ABM Industries, Inc. shares are currently trading down about 2.6% on the day. | In trading on Friday, shares of ABM Industries, Inc. (Symbol: ABM) crossed below their 200 day moving average of $37.70, changing hands as low as $36.87 per share. ABM Industries, Inc. shares are currently trading down about 2.6% on the day. The chart below shows the one year performance of ABM shares, versus its 200 day moving average: Looking at the chart above, ABM's low point in its 52 week range is $25.64 per share, with $42.67 as the 52 week high point — that compares with a last trade of $36.96. |
29371.0 | 2019-12-12 00:00:00 UTC | 5 Dividend Aristocrats Where Analysts See Capital Gains | ABM | https://www.nasdaq.com/articles/5-dividend-aristocrats-where-analysts-see-capital-gains-2019-12-12 | nan | nan | To become a "Dividend Aristocrat," a dividend paying company must accomplish an incredible feat: consistently increase shareholder dividends every year for at least 20 consecutive years. Companies with this kind of track record tend to attract a lot of investor attention — and furthermore, "tracking" funds that follow the Dividend Aristocrats Index must own them. With all of this demand for shares, dividend growth stocks can sometimes become "fully priced," where there isn't much upside to analyst targets.
But we here at ETF Channel have looked through the underlying holdings of the SPDR S&P Dividend ETF (which tracks the S&P High Yield Dividend Aristocrats Index), and found these five dividend growth stocks that actually still have fairly substantial upside to the average analyst target price 12 months out. Which means, if the analysts are correct, these are five dividend growth stocks that could produce capital gains in addition to their growing dividend payments.
In the first table below, we present the five stocks. The recent share price, average analyst 12-month target price, and percentage upside to reach the analyst target are presented.
The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. To ballpark that total return potential, we have added the current yield to the analyst target price upside, in order to arrive at the 12-month total return potential:
Another consideration with dividend growth stocks is just how much the dividend is growing. We looked up the trailing twelve months worth of dividends shareholders of each of the above five companies have collected, and then also looked up the same number for the prior trailing twelve months. This gives us a rough yardstick to see how much the dividend has grown, from one trailing twelve month period to another.
These five stocks are part of our full Dividend Aristocrats List. The average analyst target price data upon which this article was based, is courtesy of data provided by Zacks Investment Research via Quandl.com.
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Dividend Growth Stocks: 25 Aristocrats »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | With all of this demand for shares, dividend growth stocks can sometimes become "fully priced," where there isn't much upside to analyst targets. To ballpark that total return potential, we have added the current yield to the analyst target price upside, in order to arrive at the 12-month total return potential: Another consideration with dividend growth stocks is just how much the dividend is growing. Get the latest Zacks research report on ROP — FREE Get the latest Zacks research report on ABT — FREE Dividend Growth Stocks: 25 Aristocrats » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The recent share price, average analyst 12-month target price, and percentage upside to reach the analyst target are presented. The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Get the latest Zacks research report on ROP — FREE Get the latest Zacks research report on ABT — FREE Dividend Growth Stocks: 25 Aristocrats » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | But we here at ETF Channel have looked through the underlying holdings of the SPDR S&P Dividend ETF (which tracks the S&P High Yield Dividend Aristocrats Index), and found these five dividend growth stocks that actually still have fairly substantial upside to the average analyst target price 12 months out. The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. To ballpark that total return potential, we have added the current yield to the analyst target price upside, in order to arrive at the 12-month total return potential: Another consideration with dividend growth stocks is just how much the dividend is growing. | But we here at ETF Channel have looked through the underlying holdings of the SPDR S&P Dividend ETF (which tracks the S&P High Yield Dividend Aristocrats Index), and found these five dividend growth stocks that actually still have fairly substantial upside to the average analyst target price 12 months out. The recent share price, average analyst 12-month target price, and percentage upside to reach the analyst target are presented. The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. |
29372.0 | 2019-11-22 00:00:00 UTC | ABM Industries (ABM) Shares Cross Below 200 DMA | ABM | https://www.nasdaq.com/articles/abm-industries-abm-shares-cross-below-200-dma-2019-11-22 | nan | nan | In trading on Friday, shares of ABM Industries, Inc. (Symbol: ABM) crossed below their 200 day moving average of $37.57, changing hands as low as $37.43 per share. ABM Industries, Inc. shares are currently trading down about 1.3% on the day. The chart below shows the one year performance of ABM shares, versus its 200 day moving average:
Looking at the chart above, ABM's low point in its 52 week range is $25.64 per share, with $42.67 as the 52 week high point — that compares with a last trade of $37.55.
Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In trading on Friday, shares of ABM Industries, Inc. (Symbol: ABM) crossed below their 200 day moving average of $37.57, changing hands as low as $37.43 per share. The chart below shows the one year performance of ABM shares, versus its 200 day moving average: Looking at the chart above, ABM's low point in its 52 week range is $25.64 per share, with $42.67 as the 52 week high point — that compares with a last trade of $37.55. ABM Industries, Inc. shares are currently trading down about 1.3% on the day. | In trading on Friday, shares of ABM Industries, Inc. (Symbol: ABM) crossed below their 200 day moving average of $37.57, changing hands as low as $37.43 per share. The chart below shows the one year performance of ABM shares, versus its 200 day moving average: Looking at the chart above, ABM's low point in its 52 week range is $25.64 per share, with $42.67 as the 52 week high point — that compares with a last trade of $37.55. ABM Industries, Inc. shares are currently trading down about 1.3% on the day. | In trading on Friday, shares of ABM Industries, Inc. (Symbol: ABM) crossed below their 200 day moving average of $37.57, changing hands as low as $37.43 per share. The chart below shows the one year performance of ABM shares, versus its 200 day moving average: Looking at the chart above, ABM's low point in its 52 week range is $25.64 per share, with $42.67 as the 52 week high point — that compares with a last trade of $37.55. ABM Industries, Inc. shares are currently trading down about 1.3% on the day. | In trading on Friday, shares of ABM Industries, Inc. (Symbol: ABM) crossed below their 200 day moving average of $37.57, changing hands as low as $37.43 per share. ABM Industries, Inc. shares are currently trading down about 1.3% on the day. The chart below shows the one year performance of ABM shares, versus its 200 day moving average: Looking at the chart above, ABM's low point in its 52 week range is $25.64 per share, with $42.67 as the 52 week high point — that compares with a last trade of $37.55. |
29373.0 | 2019-09-30 00:00:00 UTC | Ex-Dividend Reminder: AXIS Capital Holdings, ABM Industries and ESCO Technologies | ABM | https://www.nasdaq.com/articles/ex-dividend-reminder%3A-axis-capital-holdings-abm-industries-and-esco-technologies-2019-09 | nan | nan | Looking at the universe of stocks we cover at Dividend Channel, on 10/2/19, AXIS Capital Holdings Ltd (Symbol: AXS), ABM Industries, Inc. (Symbol: ABM), and ESCO Technologies, Inc. (Symbol: ESE) will all trade ex-dividend for their respective upcoming dividends. AXIS Capital Holdings Ltd will pay its quarterly dividend of $0.40 on 10/15/19, ABM Industries, Inc. will pay its quarterly dividend of $0.18 on 11/4/19, and ESCO Technologies, Inc. will pay its quarterly dividend of $0.08 on 10/17/19. As a percentage of AXS's recent stock price of $67.25, this dividend works out to approximately 0.59%, so look for shares of AXIS Capital Holdings Ltd to trade 0.59% lower — all else being equal — when AXS shares open for trading on 10/2/19. Similarly, investors should look for ABM to open 0.49% lower in price and for ESE to open 0.10% lower, all else being equal.
When an S&P 1500 component reaches 20 years of dividend increases, it becomes a contender to join the elite "Dividend Aristocrats" index. AXIS Capital Holdings Ltd (Symbol: AXS) is a "future dividend aristocrats contender," with 15+ years of increases.
Below are dividend history charts for AXS, ABM, and ESE, showing historical dividends prior to the most recent ones declared.
AXIS Capital Holdings Ltd (Symbol: AXS):
ABM Industries, Inc. (Symbol: ABM):
ESCO Technologies, Inc. (Symbol: ESE):
In general, dividends are not always predictable, following the ups and downs of company profits over time. Therefore, a good first due diligence step in forming an expectation of annual yield going forward, is looking at the history above, for a sense of stability over time. This can help in judging whether the most recent dividends from these companies are likely to continue. If they do continue, the current estimated yields on annualized basis would be 2.38% for AXIS Capital Holdings Ltd, 1.97% for ABM Industries, Inc., and 0.40% for ESCO Technologies, Inc..
In Monday trading, AXIS Capital Holdings Ltd shares are currently up about 0.5%, ABM Industries, Inc. shares are up about 0.4%, and ESCO Technologies, Inc. shares are up about 0.6% on the day.
Click here to learn which 25 S.A.F.E. dividend stocks should be on your radar screen »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | If they do continue, the current estimated yields on annualized basis would be 2.38% for AXIS Capital Holdings Ltd, 1.97% for ABM Industries, Inc., and 0.40% for ESCO Technologies, Inc.. Looking at the universe of stocks we cover at Dividend Channel, on 10/2/19, AXIS Capital Holdings Ltd (Symbol: AXS), ABM Industries, Inc. (Symbol: ABM), and ESCO Technologies, Inc. (Symbol: ESE) will all trade ex-dividend for their respective upcoming dividends. AXIS Capital Holdings Ltd will pay its quarterly dividend of $0.40 on 10/15/19, ABM Industries, Inc. will pay its quarterly dividend of $0.18 on 11/4/19, and ESCO Technologies, Inc. will pay its quarterly dividend of $0.08 on 10/17/19. | Looking at the universe of stocks we cover at Dividend Channel, on 10/2/19, AXIS Capital Holdings Ltd (Symbol: AXS), ABM Industries, Inc. (Symbol: ABM), and ESCO Technologies, Inc. (Symbol: ESE) will all trade ex-dividend for their respective upcoming dividends. AXIS Capital Holdings Ltd will pay its quarterly dividend of $0.40 on 10/15/19, ABM Industries, Inc. will pay its quarterly dividend of $0.18 on 11/4/19, and ESCO Technologies, Inc. will pay its quarterly dividend of $0.08 on 10/17/19. AXIS Capital Holdings Ltd (Symbol: AXS): ABM Industries, Inc. (Symbol: ABM): ESCO Technologies, Inc. (Symbol: ESE): In general, dividends are not always predictable, following the ups and downs of company profits over time. | Looking at the universe of stocks we cover at Dividend Channel, on 10/2/19, AXIS Capital Holdings Ltd (Symbol: AXS), ABM Industries, Inc. (Symbol: ABM), and ESCO Technologies, Inc. (Symbol: ESE) will all trade ex-dividend for their respective upcoming dividends. AXIS Capital Holdings Ltd will pay its quarterly dividend of $0.40 on 10/15/19, ABM Industries, Inc. will pay its quarterly dividend of $0.18 on 11/4/19, and ESCO Technologies, Inc. will pay its quarterly dividend of $0.08 on 10/17/19. AXIS Capital Holdings Ltd (Symbol: AXS): ABM Industries, Inc. (Symbol: ABM): ESCO Technologies, Inc. (Symbol: ESE): In general, dividends are not always predictable, following the ups and downs of company profits over time. | Looking at the universe of stocks we cover at Dividend Channel, on 10/2/19, AXIS Capital Holdings Ltd (Symbol: AXS), ABM Industries, Inc. (Symbol: ABM), and ESCO Technologies, Inc. (Symbol: ESE) will all trade ex-dividend for their respective upcoming dividends. If they do continue, the current estimated yields on annualized basis would be 2.38% for AXIS Capital Holdings Ltd, 1.97% for ABM Industries, Inc., and 0.40% for ESCO Technologies, Inc.. AXIS Capital Holdings Ltd will pay its quarterly dividend of $0.40 on 10/15/19, ABM Industries, Inc. will pay its quarterly dividend of $0.18 on 11/4/19, and ESCO Technologies, Inc. will pay its quarterly dividend of $0.08 on 10/17/19. |
29374.0 | 2019-09-25 00:00:00 UTC | ABM Makes Bullish Cross Above Critical Moving Average | ABM | https://www.nasdaq.com/articles/abm-makes-bullish-cross-above-critical-moving-average-2019-09-25 | nan | nan | In trading on Wednesday, shares of ABM Industries, Inc. (Symbol: ABM) crossed above their 200 day moving average of $36.58, changing hands as high as $36.66 per share. ABM Industries, Inc. shares are currently trading up about 2% on the day. The chart below shows the one year performance of ABM shares, versus its 200 day moving average:
Looking at the chart above, ABM's low point in its 52 week range is $25.64 per share, with $42.67 as the 52 week high point — that compares with a last trade of $36.55.
Click here to find out which 9 other dividend stocks recently crossed above their 200 day moving average »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In trading on Wednesday, shares of ABM Industries, Inc. (Symbol: ABM) crossed above their 200 day moving average of $36.58, changing hands as high as $36.66 per share. The chart below shows the one year performance of ABM shares, versus its 200 day moving average: Looking at the chart above, ABM's low point in its 52 week range is $25.64 per share, with $42.67 as the 52 week high point — that compares with a last trade of $36.55. ABM Industries, Inc. shares are currently trading up about 2% on the day. | In trading on Wednesday, shares of ABM Industries, Inc. (Symbol: ABM) crossed above their 200 day moving average of $36.58, changing hands as high as $36.66 per share. The chart below shows the one year performance of ABM shares, versus its 200 day moving average: Looking at the chart above, ABM's low point in its 52 week range is $25.64 per share, with $42.67 as the 52 week high point — that compares with a last trade of $36.55. ABM Industries, Inc. shares are currently trading up about 2% on the day. | In trading on Wednesday, shares of ABM Industries, Inc. (Symbol: ABM) crossed above their 200 day moving average of $36.58, changing hands as high as $36.66 per share. The chart below shows the one year performance of ABM shares, versus its 200 day moving average: Looking at the chart above, ABM's low point in its 52 week range is $25.64 per share, with $42.67 as the 52 week high point — that compares with a last trade of $36.55. ABM Industries, Inc. shares are currently trading up about 2% on the day. | In trading on Wednesday, shares of ABM Industries, Inc. (Symbol: ABM) crossed above their 200 day moving average of $36.58, changing hands as high as $36.66 per share. ABM Industries, Inc. shares are currently trading up about 2% on the day. The chart below shows the one year performance of ABM shares, versus its 200 day moving average: Looking at the chart above, ABM's low point in its 52 week range is $25.64 per share, with $42.67 as the 52 week high point — that compares with a last trade of $36.55. |
29375.0 | 2019-09-25 00:00:00 UTC | ABM Makes Bullish Cross Above Critical Moving Average | ABM | https://www.nasdaq.com/articles/abm-makes-bullish-cross-above-critical-moving-average-2019-09-25-0 | nan | nan | In trading on Wednesday, shares of ABM Industries, Inc. (Symbol: ABM) crossed above their 200 day moving average of $36.58, changing hands as high as $36.66 per share. ABM Industries, Inc. shares are currently trading up about 2% on the day. The chart below shows the one year performance of ABM shares, versus its 200 day moving average:
Looking at the chart above, ABM's low point in its 52 week range is $25.64 per share, with $42.67 as the 52 week high point — that compares with a last trade of $36.55.
Click here to find out which 9 other dividend stocks recently crossed above their 200 day moving average »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In trading on Wednesday, shares of ABM Industries, Inc. (Symbol: ABM) crossed above their 200 day moving average of $36.58, changing hands as high as $36.66 per share. The chart below shows the one year performance of ABM shares, versus its 200 day moving average: Looking at the chart above, ABM's low point in its 52 week range is $25.64 per share, with $42.67 as the 52 week high point — that compares with a last trade of $36.55. ABM Industries, Inc. shares are currently trading up about 2% on the day. | In trading on Wednesday, shares of ABM Industries, Inc. (Symbol: ABM) crossed above their 200 day moving average of $36.58, changing hands as high as $36.66 per share. The chart below shows the one year performance of ABM shares, versus its 200 day moving average: Looking at the chart above, ABM's low point in its 52 week range is $25.64 per share, with $42.67 as the 52 week high point — that compares with a last trade of $36.55. ABM Industries, Inc. shares are currently trading up about 2% on the day. | In trading on Wednesday, shares of ABM Industries, Inc. (Symbol: ABM) crossed above their 200 day moving average of $36.58, changing hands as high as $36.66 per share. The chart below shows the one year performance of ABM shares, versus its 200 day moving average: Looking at the chart above, ABM's low point in its 52 week range is $25.64 per share, with $42.67 as the 52 week high point — that compares with a last trade of $36.55. ABM Industries, Inc. shares are currently trading up about 2% on the day. | In trading on Wednesday, shares of ABM Industries, Inc. (Symbol: ABM) crossed above their 200 day moving average of $36.58, changing hands as high as $36.66 per share. ABM Industries, Inc. shares are currently trading up about 2% on the day. The chart below shows the one year performance of ABM shares, versus its 200 day moving average: Looking at the chart above, ABM's low point in its 52 week range is $25.64 per share, with $42.67 as the 52 week high point — that compares with a last trade of $36.55. |
29376.0 | 2019-09-22 00:00:00 UTC | 5 Top Dividend Kings to Buy and Hold Forever | ABM | https://www.nasdaq.com/articles/5-top-dividend-kings-to-buy-and-hold-forever-2019-09-22 | nan | nan | You've no doubt heard of Dividend Aristocrats, stocks in the S&P 500 that have increased their dividend for 25 consecutive years. But the true royalty among dividend stocks are the Dividend Kings. These stocks have boosted their dividends for at least 50 years in a row.
Not all Dividend Kings are worthy of holding sway in your portfolio, though. Some are quite expensive compared to their growth prospects. Others don't have strong economic moats that protect them from competition. Several of the Dividend Kings don't even offer dividend yields that are very attractive.
But there are some Dividend Kings you can buy and hold forever. Five that especially stand out are ABM Industries (NYSE: ABM), Dover Corporation (NYSE: DOV), Johnson & Johnson (NYSE: JNJ), Lowe's (NYSE: LOW), and Parker-Hannifin (NYSE: PH).
Image source: Getty Images.
1. ABM Industries
ABM Industries is an integrated facilities solutions company. It provides janitorial, facilities engineering, and parking services for commercial real estate properties, businesses, educational institutions, and sports and entertainment venues as well as a range of services to airports, hospitals, and non-acute facilities.
The company has paid a dividend every year since 1965. ABM's dividend currently yields 1.97%.
Although the company's services might not be the most exciting, ABM's business model is solid. The company continues to make strategic acquisitions and divestitures that should keep it at the top of the market for facilities solutions, ensuring that those nice dividends keep flowing.
2. Dover
Dover is a diversified global company that provides specialized equipment, components, and consumables for multiple industries. It focuses primarily on selling to businesses operating in the chemical, consumer goods, digital textile printing, environmental solutions, industrial, oil and gas, retail fueling, and vehicle service markets.
The company's streak of increasing its dividends annually goes back 64 years. Dover's dividend yield currently stands at 1.97%.
In 2018, Dover initiated a corporate restructuring that reduced costs and shifted its portfolio to focus on higher-margin businesses. That effort appears to have paid off, with shares soaring around 40% so far this year. Dover should now be in an even better position to continue rewarding shareholders with higher dividend payments for a long time to come.
3. Johnson & Johnson
Johnson & Johnson ranks as the largest healthcare company in the world. The company has over 260 businesses across the world that develop and market consumer healthcare products, medical devices, and pharmaceuticals.
J&J has increased its dividend for 57 consecutive years. Its dividend yields 2.91% -- the highest level among these top five Dividend Kings.
The company stands to benefit from aging demographic trends that should drive higher demand for healthcare products and services over the long term. J&J's breadth of operations across the healthcare continuum also enable it to offer bundling deals to customers that give the company a competitive advantage over its peers.
4. Lowe's
Lowe's is the second-largest home improvement retailer in the world, trailing behind Home Depot. These two companies enjoy a near-duopoly, competing primarily against each other and smaller home improvement stores.
Unlike Home Depot, though, Lowe's has an impressive track record of dividend hikes that began in 1961. The company's dividend currently yields 1.95%.
While Lowe's is still No. 2 in the market, it beat Home Depot in the latest quarter on the important metric of comparable-store sales growth. Although there is some volatility in the home improvement sector, Lowe's has shown that it can survive and thrive, making it likely that its dividend streak will keep going.
5. Parker-Hannifin
Parker-Hannifin is a leading global manufacturer of motion and control technologies and systems for a wide variety of mobile, industrial, and aerospace markets. It sells hundreds of thousands of products, including pumps, motors, seals, and valves, with no single product making up more than 1% of its total revenue.
The company has paid a dividend for 63 consecutive years. Its dividend yield currently stands at 1.97%.
Parker-Hannifin's fiscal 2019, which closed in June, was the company's best year in its history. Its decentralized organizational structure fosters an atmosphere of innovation that enables Parker-Hannifin to continue winning customers' business. And that means the dividend payouts should keep rising for years to come.
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Keith Speights has no position in any of the stocks mentioned. The Motley Fool has the following options: short February 2020 $205 calls on Home Depot and long January 2021 $120 calls on Home Depot. The Motley Fool recommends Home Depot, Johnson & Johnson, and Lowe's. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Five that especially stand out are ABM Industries (NYSE: ABM), Dover Corporation (NYSE: DOV), Johnson & Johnson (NYSE: JNJ), Lowe's (NYSE: LOW), and Parker-Hannifin (NYSE: PH). ABM Industries ABM Industries is an integrated facilities solutions company. ABM's dividend currently yields 1.97%. | Five that especially stand out are ABM Industries (NYSE: ABM), Dover Corporation (NYSE: DOV), Johnson & Johnson (NYSE: JNJ), Lowe's (NYSE: LOW), and Parker-Hannifin (NYSE: PH). ABM Industries ABM Industries is an integrated facilities solutions company. ABM's dividend currently yields 1.97%. | Five that especially stand out are ABM Industries (NYSE: ABM), Dover Corporation (NYSE: DOV), Johnson & Johnson (NYSE: JNJ), Lowe's (NYSE: LOW), and Parker-Hannifin (NYSE: PH). ABM Industries ABM Industries is an integrated facilities solutions company. ABM's dividend currently yields 1.97%. | ABM Industries ABM Industries is an integrated facilities solutions company. Five that especially stand out are ABM Industries (NYSE: ABM), Dover Corporation (NYSE: DOV), Johnson & Johnson (NYSE: JNJ), Lowe's (NYSE: LOW), and Parker-Hannifin (NYSE: PH). ABM's dividend currently yields 1.97%. |
29377.0 | 2019-09-19 00:00:00 UTC | The Implied Analyst 12-Month Target For IJS | ABM | https://www.nasdaq.com/articles/the-implied-analyst-12-month-target-for-ijs-2019-09-19 | nan | nan | Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the iShares S&P Small-Cap 600 Value ETF (Symbol: IJS), we found that the implied analyst target price for the ETF based upon its underlying holdings is $168.91 per unit.
With IJS trading at a recent price near $153.24 per unit, that means that analysts see 10.23% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of IJS's underlying holdings with notable upside to their analyst target prices are (Symbol: CENTA), ABM Industries, Inc. (Symbol: ABM), and Team Inc (Symbol: TISI). Although CENTA has traded at a recent price of $25.88/share, the average analyst target is 24.61% higher at $32.25/share. Similarly, ABM has 20.10% upside from the recent share price of $36.22 if the average analyst target price of $43.50/share is reached, and analysts on average are expecting TISI to reach a target price of $21.00/share, which is 17.98% above the recent price of $17.80. Below is a twelve month price history chart comparing the stock performance of CENTA, ABM, and TISI:
Below is a summary table of the current analyst target prices discussed above:
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
10 ETFs With Most Upside To Analyst Targets »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Below is a twelve month price history chart comparing the stock performance of CENTA, ABM, and TISI: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of IJS's underlying holdings with notable upside to their analyst target prices are (Symbol: CENTA), ABM Industries, Inc. (Symbol: ABM), and Team Inc (Symbol: TISI). Similarly, ABM has 20.10% upside from the recent share price of $36.22 if the average analyst target price of $43.50/share is reached, and analysts on average are expecting TISI to reach a target price of $21.00/share, which is 17.98% above the recent price of $17.80. | Three of IJS's underlying holdings with notable upside to their analyst target prices are (Symbol: CENTA), ABM Industries, Inc. (Symbol: ABM), and Team Inc (Symbol: TISI). Similarly, ABM has 20.10% upside from the recent share price of $36.22 if the average analyst target price of $43.50/share is reached, and analysts on average are expecting TISI to reach a target price of $21.00/share, which is 17.98% above the recent price of $17.80. Below is a twelve month price history chart comparing the stock performance of CENTA, ABM, and TISI: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? | Similarly, ABM has 20.10% upside from the recent share price of $36.22 if the average analyst target price of $43.50/share is reached, and analysts on average are expecting TISI to reach a target price of $21.00/share, which is 17.98% above the recent price of $17.80. Below is a twelve month price history chart comparing the stock performance of CENTA, ABM, and TISI: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of IJS's underlying holdings with notable upside to their analyst target prices are (Symbol: CENTA), ABM Industries, Inc. (Symbol: ABM), and Team Inc (Symbol: TISI). | Below is a twelve month price history chart comparing the stock performance of CENTA, ABM, and TISI: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of IJS's underlying holdings with notable upside to their analyst target prices are (Symbol: CENTA), ABM Industries, Inc. (Symbol: ABM), and Team Inc (Symbol: TISI). Similarly, ABM has 20.10% upside from the recent share price of $36.22 if the average analyst target price of $43.50/share is reached, and analysts on average are expecting TISI to reach a target price of $21.00/share, which is 17.98% above the recent price of $17.80. |
29378.0 | 2019-09-15 00:00:00 UTC | What Is a Dividend Aristocrat? | ABM | https://www.nasdaq.com/articles/what-is-a-dividend-aristocrat-2019-09-15 | nan | nan | Millions of investors own stocks that regularly pay out dividends of varying amounts per share, but few are familiar with an elite class of dividend stocks known as Dividend Aristocrats.
In this article, we'll break down exactly why Dividend Aristocrats are so attractive to investors and share a few aristocrat stocks that could help unlock the full potential of your portfolio.
What is a dividend?
A dividend is a payment from a company's profits to its shareholders. Just as all stocks are created differently, so are dividends. Different companies pay out different dividend amounts. For example, if a company pays 3% of its total stock price each quarter, an investor with $100 in that stock gets $3 back every quarter. Of course, this number can fluctuate vastly depending on a company's success.
Not all companies pay their investors dividends. Typically, the companies that offer consistent and increasingly higher dividend yields are older and more established businesses. These are companies that have been around for decades, perhaps even centuries, and can afford to let go of some of their liquid capital each quarter without needing to immediately reinvest it in the business to fund things like research, development, marketing, or paying off debt.
A special collection of established and reliable companies known as Dividend Aristocrats can help make investing in dividends a relative no-brainer.
Image Source: Getty Images.
What are Dividend Aristocrats?
The term "Dividend Aristocrats" is trademarked by the financial firm Standard & Poor's, and S&P maintains strict definitions for several classes of aristocrat stocks. Most commonly, though, investors who are referring to Dividend Aristocrats colloquially are talking about companies on the S&P 500 index that have increased their dividend payouts for 25 consecutive years or more, at least once a year. These companies have never decreased their dividend payout to shareholders during that time.
First established in 1989, this index contained the most stocks in 2001, but given considerable changes in dividend policy among companies over the past two decades or so, the list has undergone significant scale-backs and revisions.
The number of companies on the list tends to coincide with historically significant bear markets. For example, the initial list of just 26 companies was published 25 years after the down years of 1973-1974. That tough economy very likely forced many companies to freeze or drop their dividends, disqualifying them from the original list 25 years later. Likewise, the list peaked in 2001 at 64 and again at 60 in 2008. The recessions that immediately followed those peaks once again forced numerous Dividend Aristocrats off the list.
Many stocks listed on the index are familiar household names. Coca-Cola, ExxonMobil, and McDonald's have all managed to retain their status as Dividend Aristocrats for more than a quarter of a century. There are 57 companies on the list currently, with the consumer staples category containing the most. These include companies like The Clorox Company, Colgate Palmolive, Kimberly Clark, and PepsiCo. But industrials don't trail far behind, making up more than a fifth of the companies listed. Think 3M, General Dynamics, and Stanley Black and Decker.
The list of Dividend Aristocrats tends to fluctuate semiregularly, with new companies being added (and, unfortunately, occasionally subtracted) every year. Here's a full list of the S&P 500 Dividend Aristocrats as it stood in August 2019:
Source: S&P Dow Jones Indices.
Why Dividend Aristocrats make strong investments
Not just any company is capable of increasing its dividend for 25-plus years. The sustained success required is, almost by definition, next to impossible. Only around 10% of companies on the S&P 500 qualify today, after all. To achieve such a feat, a company must be consistent and resilient and have strong competitive advantages and excellent capital allocation.
Economically speaking, this means a company must have a demonstrated record of raising its earnings and cash flow and sharpening its balance sheet to make those payments to its eager investors. That combination of factors leads to strong fundamental performance first. The dividend strength is a reflection of those fundamentals, not the other way around. In other words, a company doesn't become successful because it offers dividends; a company offers dividends because it is successful.
How Dividend Aristocrats benefit your returns
When it comes to Dividend Aristocrats' yield, a couple of percentage points might not sound like much: 3% of a $100 stock barely buys you a candy bar at your local gas station. But it's not just about how high a yield is. One should also consider the payout ratio, which is how smart investors examine a company's sustainability. Mathematically speaking, a payout ratio is calculated by dividing dividends per share (DPS) by earnings per share (EPS).
Let's look at an example. Say a company has earnings per share of $5 and dividends per share of $2. Its payout ratio would therefore be 40%.
Investors use this figure to determine the sustainability of the company's business. The higher its payout ratio is, the more a company is spending to maintain its dividend payments. If, for example, a stock's payout ratio is 100%, it means the company is spending all of its earnings on paying investors dividends. This is an unsustainable model for obvious reasons.
But Dividend Aristocrats are different. They're resilient, established companies with proven records. They're bringing in sustainable income, and we can mostly trust that they aren't going anywhere. They can afford to toggle their dividend payout ratio -- and consistently raise it -- without upsetting their balance sheets.
Many of the companies listed as Dividend Aristocrats, therefore, have been in business for decades. Some, like 3M, Coca-Cola, and PepsiCo have lasted more than a century. Dividend aristocrats also tend to follow the S&P 500, many times outperforming it. Since many of these companies are also on the S&P 500, it makes sense that the Dividend Aristocrats would follow such a reliable trend. However, not all companies on the S&P offer dividends, and those that do haven't necessarily maintained an increasing dividend yield for more than 25 years. Investing in an index of these elite and reliable companies, therefore, makes for a smart bet in the long run.
Data source: YCharts.
Like any other stock, Dividend Aristocrats are subject to market change. An argument can be made that such mammoth companies are under more pressure -- and therefore are criticized more for a misstep or underperformance -- because they are hailed as such sustainable and sound investments. Any mistake is recorded, analyzed, and often mentioned on TV, heightening an audience's awareness. For instance, if Coca-Cola makes a bad bet on a new product, the market notices more than if a lesser-known company or one that's only recently gone public makes the same ill-advised judgment call. But it's not all bad for Coca-Cola or for its investors. The company's stock is capable of absorbing mistakes better than a new company can, since it has a proven track record and has likely weathered similar errors in the past.
Dividend aristocrats are therefore good (or, at least, better) bets if you're trying to sift through the noise of a constantly fluctuating market. This isn't to say they're bulletproof, but they are resistant to nuanced daily fluctuations and have been around for generations. And since they've demonstrated a repeated ability to line investors' pockets with a little extra cash -- just for putting their trust (and money) with them -- they enjoy a coveted consumer confidence that few other companies have.
Dividend Kings
Investors have come up with other terms to talk about stocks with even more impressive dividend histories. For instance, Dividend Kings are an exclusive grouping of companies that have raised their dividends for 50 or more years, every single year. That's no small feat when you consider how vastly stocks can fluctuate on a day-to-day basis, let alone year to year. Consider what the market has seen over the past 50 years: global unrest, wars, rising interest rates, falling interest rates, historic highs, lows, 10 presidencies, a technological boom, automation, disruption, disruption, disruption. And somehow, these companies have weathered it all. It's amazing to consider, really. And the list is always changing. It's not easy being king, and very few retain the crown.
As of this year, only 26 companies are considered Dividend Kings. They are:
Source: dripinvesting.org.
Keep in mind that being a Dividend King does not make a company a Dividend Aristocrat. This sounds counterintuitive, since it seems as if companies that managed to double the Dividend Aristocrats' 25-year track record should fit seamlessly into the category. But at least as strictly defined, Dividend Aristocrats belong to the S&P 500 and therefore also must be American-based companies of a certain market cap, whereas Dividend Kings are measured only by their dividend records.
Drawbacks of Dividend Aristocrats
When it comes to the market, everyone has an opinion. And when we're talking about Dividend Aristocrats, even though they may seem too good to be true, many investors see a certain drawback to investing only in stocks that offer such steady dividends.
One common critique of Dividend Aristocrats is that they're unimaginative. Plenty of people say that these payouts are a waste of money, since companies will never see a tangible return from their generosity. Rather than reinvesting extra capital in their own business for something like marketing, research and development, expansion, or other areas of improvement, the common complaint is that these companies just send money out the door without putting it to work for them.
This criticism is somewhat valid; it certainly adds up when a company like PepsiCo regularly gives away almost $4 on every share. But these are huge companies, many of which have been around for more than a century. Sure, Coca-Cola, PepsiCo, and Caterpillar can continue to expand -- at least marginally -- and continue to acquire smaller companies in the name of growth. But on a macro level, most Dividend Aristocrats have already hit their critical mass. How many countries have at least one McDonald's within their borders? (Answer for your next cocktail party: 117 and counting.)
There's still at least marginal room to grow, but these hugely lucrative companies don't need to reinvest each and every penny they make in their businesses to keep their heads above water. Newer companies, disruptors, and less profitable ones do.
It's also worth noting that while offering dividends isn't inherently risky, it does mean that a company repeatedly raising its dividend has a larger target on its back. When companies randomly slash their dividends dramatically with little forewarning (yes, it happens), investors panic, which can drive a stock price down.
Newer companies such as Netflix or Lyft might be exciting, but it's far riskier to overweight your portfolio with relatively untested, high-growth stocks like those than to stick with companies that have slower growth but proven records and steady dividends. Aristocrats, therefore, are slow and safe bets.
So what does it all mean?
Put simply, investing in Dividend Aristocrats is a Foolish (with a capital F!) way to invest! No, filling your portfolio with tons of shares of Johnson & Johnson probably won't make you rich overnight. Overweighting your portfolio with one company would not only be risky, but it would also take the fun and creativity out of investing!
Instead, we suggest doing your homework:
Pick a dozen or so stocks from this list and research them thoroughly.
Use our knowledge center and read about our top 3 dividend stocks to buy this year and hold forever.
Look beyond share prices and past performance.
Sure, this research will provide indicators as to whether purchasing a particular stock is a good idea, but it won't tell the whole story. Take the individual dividend yield percentage into account, consider a company's mission and whether you believe in it, and remember the most important factor to any company's success: its leadership. As we always say, a CEO is the most important key to a business's success in the long run. So if you don't like a company's CEO, board, or long-term vision, consider skipping it altogether.
Adding Dividend Aristocrats to your portfolio and sitting on them for the long haul isn't necessarily foolproof. Market downturns, busts, and recessions can still happen. But Aristocrats will deliver a small amount of steady and reliable income as your portfolio grows (and your companies succeed) over the years. And when the market inevitably corrects or a black-swan event shocks the world (let's hope it doesn't, but it's best to be prepared), you'll be glad you tucked away a few safe bets that bolster your portfolio with a little extra cash for a rainy day.
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Jena Greene has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Netflix. The Motley Fool owns shares of Nordson. The Motley Fool is short shares of Clorox, Colgate-Palmolive, Kimberly-Clark, and Procter & Gamble. The Motley Fool recommends 3M, Aflac, Becton, Dickinson, Cintas, Ecolab, Johnson & Johnson, Lowe's, McCormick, Nucor, Roper Technologies, and Sherwin-Williams. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | These are companies that have been around for decades, perhaps even centuries, and can afford to let go of some of their liquid capital each quarter without needing to immediately reinvest it in the business to fund things like research, development, marketing, or paying off debt. Rather than reinvesting extra capital in their own business for something like marketing, research and development, expansion, or other areas of improvement, the common complaint is that these companies just send money out the door without putting it to work for them. And when the market inevitably corrects or a black-swan event shocks the world (let's hope it doesn't, but it's best to be prepared), you'll be glad you tucked away a few safe bets that bolster your portfolio with a little extra cash for a rainy day. | Millions of investors own stocks that regularly pay out dividends of varying amounts per share, but few are familiar with an elite class of dividend stocks known as Dividend Aristocrats. Why Dividend Aristocrats make strong investments Not just any company is capable of increasing its dividend for 25-plus years. Consider what the market has seen over the past 50 years: global unrest, wars, rising interest rates, falling interest rates, historic highs, lows, 10 presidencies, a technological boom, automation, disruption, disruption, disruption. | Millions of investors own stocks that regularly pay out dividends of varying amounts per share, but few are familiar with an elite class of dividend stocks known as Dividend Aristocrats. In other words, a company doesn't become successful because it offers dividends; a company offers dividends because it is successful. But at least as strictly defined, Dividend Aristocrats belong to the S&P 500 and therefore also must be American-based companies of a certain market cap, whereas Dividend Kings are measured only by their dividend records. | What is a dividend? What are Dividend Aristocrats? But Dividend Aristocrats are different. |
29379.0 | 2019-09-09 00:00:00 UTC | ABM Industries Enters Oversold Territory | ABM | https://www.nasdaq.com/articles/abm-industries-enters-oversold-territory-2019-09-09 | nan | nan | The DividendRank formula at Dividend Channel ranks a coverage universe of thousands of dividend stocks, according to a proprietary formula designed to identify those stocks that combine two important characteristics — strong fundamentals and a valuation that looks inexpensive. ABM Industries, Inc. (Symbol: ABM) presently has an above average rank, in the top 50% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors.
But making ABM Industries, Inc. an even more interesting and timely stock to look at, is the fact that in trading on Monday, shares of ABM entered into oversold territory, changing hands as low as $33.78 per share. We define oversold territory using the Relative Strength Index, or RSI, which is a technical analysis indicator used to measure momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30. In the case of ABM Industries, Inc., the RSI reading has hit 29.9 — by comparison, the universe of dividend stocks covered by Dividend Channel currently has an average RSI of 54.2. A falling stock price — all else being equal — creates a better opportunity for dividend investors to capture a higher yield. Indeed, ABM's recent annualized dividend of 0.72/share (currently paid in quarterly installments) works out to an annual yield of 2.04% based upon the recent $35.34 share price.
A bullish investor could look at ABM's 29.9 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. Among the fundamental datapoints dividend investors should investigate to decide if they are bullish on ABM is its dividend history. In general, dividends are not always predictable; but, looking at the history chart below can help in judging whether the most recent dividend is likely to continue.
Click here to find out what 9 other oversold dividend stocks you need to know about »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | A bullish investor could look at ABM's 29.9 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. ABM Industries, Inc. (Symbol: ABM) presently has an above average rank, in the top 50% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors. But making ABM Industries, Inc. an even more interesting and timely stock to look at, is the fact that in trading on Monday, shares of ABM entered into oversold territory, changing hands as low as $33.78 per share. | In the case of ABM Industries, Inc., the RSI reading has hit 29.9 — by comparison, the universe of dividend stocks covered by Dividend Channel currently has an average RSI of 54.2. Indeed, ABM's recent annualized dividend of 0.72/share (currently paid in quarterly installments) works out to an annual yield of 2.04% based upon the recent $35.34 share price. ABM Industries, Inc. (Symbol: ABM) presently has an above average rank, in the top 50% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors. | But making ABM Industries, Inc. an even more interesting and timely stock to look at, is the fact that in trading on Monday, shares of ABM entered into oversold territory, changing hands as low as $33.78 per share. In the case of ABM Industries, Inc., the RSI reading has hit 29.9 — by comparison, the universe of dividend stocks covered by Dividend Channel currently has an average RSI of 54.2. ABM Industries, Inc. (Symbol: ABM) presently has an above average rank, in the top 50% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors. | In the case of ABM Industries, Inc., the RSI reading has hit 29.9 — by comparison, the universe of dividend stocks covered by Dividend Channel currently has an average RSI of 54.2. Among the fundamental datapoints dividend investors should investigate to decide if they are bullish on ABM is its dividend history. ABM Industries, Inc. (Symbol: ABM) presently has an above average rank, in the top 50% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors. |
29380.0 | 2019-09-06 00:00:00 UTC | ABM Industries Inc (ABM) Q3 2019 Earnings Call Transcript | ABM | https://www.nasdaq.com/articles/abm-industries-inc-abm-q3-2019-earnings-call-transcript-2019-09-06 | nan | nan | Image source: The Motley Fool.
ABM Industries Inc (NYSE: ABM)
Q3 2019 Earnings Call
Sep 6, 2019, 8:30 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Greetings and welcome to the ABM Industries Third quarter 2019 Earnings Call. [Operator Instructions]
I would now like to turn the conference over to your host, Susie Kim, Vice President of Investor Relations and Treasurer for ABM Industries. Thank you. You may begin.
Susie A. Choi -- Vice President of Investor Relations and Treasurer
Thank you all for joining us this morning. With us today are Scott Salmirs, our president and Chief Executive Officer, and Anthony Scaglione, Executive Vice President and Chief Financial Officer. We issued our press release yesterday afternoon announcing our third quarter fiscal 2019 financial results. A copy of this release and an accompanying slide presentation can be found on our corporate website.
Before we begin, I would like to remind you that our call and presentation today contain predictions, estimates and other forward-looking statements. Our use of the words estimate, expect, and similar expressions are intended to identify these statements. These statements represent our current judgement of what the future holds. While we believe them to be reasonable, these statements are subject to risks and uncertainties that could cause our actual results to differ materially. These factors are described in the slide that accompanies our presentation, as well as in our filings with the SEC.
During the course of this call, certain non-GAAP financial information will be presented. A reconciliation of those numbers to GAAP financial measures is available at the end of the presentation and on the Company's website under the Investor tab.
I would also like to remind everyone that this quarter's results reflect our updated five-segment structure with healthcare remapped and integrated into our Business & Industry, Technical Solutions and Education segments. For comparative purposes, we have provided historical comparisons in the appendix section of today's presentation.
I would now like to turn the call over to Scott.
Scott Salmirs -- President and Chief Executive Officer
Thank you, Susie, and good morning, everyone. As I'm sure you read, we announced another solid quarter of performance in yesterday's earnings release. We expanded our business, both organically and profitably against last year, and our organization is delivering on the commitments we made to manage our business discerningly, as we pursue top-line new sales growth and remain disciplined on margin, themes you've consistently heard.
Specifically, we reported a record revenue quarter, reflecting organic growth of 2.3%, with an adjusted EBITDA margin at 5.6%. Our earnings per share also grew to a GAAP EPS of $0.55 and $0.60 on an adjusted basis. ASC 606 and ASC 853 had a minimal impact on these results, which Anthony will discuss in greater detail.
We are on pace to end the year in line with our expectations and we're reaffirming our EPS guidance outlook of a $1.70 to $1.80 per share on a GAAP basis, and a $1.95 to $2.05 per share on an adjusted basis. And as a reminder, last quarter, we narrowed our range by raising the low end by $0.05 per share.
I want to thank our team members for their relentless dedication through another quarter of persistent labor challenges and economic uncertainty. Unfortunately, the operating environment continues to be extremely difficult for our industry group as we have not yet reached an inflection point in the current cycle. Unemployment remains at historic lows and labor supply remains exceedingly tight. With a more competitive hiring landscape and higher turnover costs pertaining to recruitment, training and onboarding are increasing. The immigration narrative is likely contributing negatively to wage pressure and supply as well, and unfortunately, we are not expecting any near-term changes to ease pressures.
As you know, in our business, wage inflation affects us more dramatically as the majority of our contracts are fixed price. The pricing environment has not yet caught up to the incremental wage pressures that have been occurring since early 2018. In many cases, we are still seeing regional competitors bid on work using estimated wage rates that are not reflective of the current market conditions and future expectations.
While this has caused retention pressures for us as we rebid work, our margins reflect estimates that emanate from our operators' responsible and sustainable pricing. In fact, in some instances, we have seen clients return to ABM as they've experienced how non-sustainable low bids can impact service and quality.
We're also beginning to see uncertainty with the economy impact client decision-making. There are instances where award cycles are more prolonged as clients want time to assess the rising wage environment and see clarity on whether there will be a downturn in the US economy. All of these factors have contributed to a difficult retention year for us in 2019, and based on what we're seeing today, and as I discussed last quarter, we do not expect these dynamics to change in the near term.
To mitigate these challenges, we've been managing what is in our control. We have steered our business strategically by reviewing our legacy contracts to seek price escalations where and when appropriate. We adopted a disciplined approach to pricing new business as we balance pursuing profitability and growth with managing risk.
We instituted acute labor management practices to increase productivity and defend against compression and we've invested heavily in our human resources team to improve recruiting and onboarding. Across ABM's size and scale, these actions can and have served us well. B&I's performance this year is a great example.
Our diversified portfolio has also benefited us. Technical Solutions, continues to capitalize on the demand for energy efficiency and has driven growth across all of their offerings, including bundled energy solutions, easy charging installation and data center power testing. In fact, our entire energy and power services group is experiencing phenomenal growth as demand shifts toward sustainability.
Technical Solutions has certainly become a critical part of the ABM brand offering. It's a foundational component of cross-selling, and we are leveraging our talent and sales expertise to augment other areas of our business. For example, over the past three months, we have appointed key sales leadership from the Technical Solutions Group to senior roles within our Education industry group.
During the recent buying season, our Education group's bid acceptance was low. The heavily non-union environment and the ability for regional competitors to make wage assumptions that don't forecast what we see as a reality of rising wage rates, impacted our retention and new sales. The new sales leaders of this group are building a go-to-market strategy to differentiate ABM from those competitors.
We intend to change the narrative around pricing to demonstrate to clients the value we can create for them by bundling energy programs along with our leading position in custodial, grounds keeping and maintenance. Generally speaking, cross-selling will be at the core of our approach. We are actively adding salespeople and account managers through retention and implementing cross-selling training.
We believe in the potential for increased outsourcing in the education sector as schools review their aging operations. And as we've envisioned when first acquiring GCA, we are determined to incentivize new and existing clients to outsource by capitalizing on our unique facilities, maintenance and energy bundling capabilities in the way only ABM can.
Our year-to-date enterprise progress has shown us that focusing on our team members is the key to unlocking greater potential for the firm. We have invested in people to instill a sales culture that is on pace to achieve $1 billion in new sales this year, which would be another record year. We've introduced new tools to help our operators manage the labor more effectively and we continue to invest by adding HR team members to support the growing needs created by the current environment and the need to use speed to hire and best in class onboarding as a competitive weapon.
In addition to adding HR team members, we are making planned corporate investments in an HR structure that centralizes and more importantly, standardizes hiring and training practices. Remember, when we started 2020 Vision, we inherited our legacy distributed approach across our 300 branches with no leverage from standardization.
We are fostering a DNA driven model that measures key metrics such as retention and labor performance to inform decisions and ultimately contain costs. With the investments we've been making in our HR technology platform, this is becoming possible. I just returned from a quarterly business review meetings with our industry group presidents and they were enthusiastic about the expanded engagement and increased productivity from their HR business partners. As we've been rolling out our new HR model, we are starting to see open positions being filled more quickly. This will lead to reductions in overtime, which as you can imagine, is pressured when job sites have team member vacancies.
And investments in HR are not solely about reducing overtime or speed to hire, we believe that supporting the team member experience can drive longer term value through improved retention, higher quality talent acquisition and reduced reliance on temporary workers, which are at higher cost. And don't forget, these are all elements which enhance the client experience. In fact, we recently conducted an enterprisewide client survey and reducing employee turnover was one of the central quest we heard across all of our clients.
A higher cost model has been necessary to grow and offset margin compression. With no near-term change on the labor front, a similar level of attention will be required going forward in order for us to maintain our business with the same core principles. The investments in our HR organizations and systems will prove out to be the game changer for ABM over the next two years to three years.
As an organization, we are really proud of where we've been heading over the past four years. It's certainly not easy modernizing ingrained processes and systems of a 110-year old Company, and if that weren't enough, throw in the worst labor crisis in modern history. Fortunately, we have an amazing team and our confidence has only grown stronger for the long term.
Now, before I turn the call over to Anthony, I'd be remiss if I didn't congratulate our finance and shared services team for successfully closing our first quarter with a new ERP system in the UK. We still have a long road ahead of us, but our UK launch in May and now our first UK close is a milestone that will benefit the entire organization for years to come and help provide a roadmap for our US ERP upgrade. I want to thank Anthony and his teams for anchoring our business as they close our financials quarter after quarter on multiple systems. Anthony?
Anthony Scaglione -- Chief Financial Officer
Thanks, Scott. Before I recap the quarter's results, I would like to provide my customary synopsis of the impact of ASC 606 and ASC 853. Given we are three quarters into the year, I also want to discuss how the new accounting rule has developed throughout the year.
Our quarterly results reflect lower revenues of approximately $12.5 million associated with ASC 853 related to service concession arrangements, primarily reflected in our Aviation segment. The deferral of profit on unsold materials associated within our Technical Solutions project was approximately negative $0.7 million. Lower sales commissions, which are now deferred and recognized over the expected customer relationship period, was approximately $2.2 million, primarily impacting Technical Solutions.
Our initial guidance range anticipated an impact due to 606, which at the time was primarily related to unsold materials that were a carryover of amounts previously recorded in fiscal '18. Moving to Q3 and our earnings per share outlook for the full year, the predominance of the 606 impact has stemmed from the sales commissions cost. I want to point this out that as the year has progressed, tremendous growth within our Technical Solutions segment has enlarged this impact. While for transparency we have delineated these accounting items, I want to note that the sales commission piece is more operational in nature versus the carry-forward of prior years unsold materials.
Now onto the quarter. Revenues were $1.6 billion, driven by our Technical Solutions and Aviation segments. On a GAAP basis, our income from continuing operations was $36.5 million, or $0.55 per diluted share compared to $33.7 million, or $0.51 last year. Before moving on, I am pleased to report that these results reflect a $3.7 million favorable impact from insurance, a material improvement since we launched our comprehensive safety and risk program exactly four years ago.
Year-after-year, we have seen our prior year adjustments decrease, speaking to the success of the program and its results. It has certainly continued to be a significant challenge due to the unpredictability of complicated societal forces. However, our aggressive procedures to resolve open cases as well as our continued focus and investment in safety personnel and programs has resulted in more stability than we have witnessed over the past few years.
I'm cautiously optimistic that our results are demonstrating a sustainable pattern of decreased volatility. I'd like to thank Jessica Morgan, who leads our insurance group and the whole risk and safety team for the progress we have made thus far.
Moving to adjusted income from continuing operations, for the quarter, it was $40.2 million, or $0.60 per diluted share, compared to $38 million, or $0.57 last year. On both a GAAP and non-GAAP basis, our results were driven by a combination of higher margin revenue contribution from our Technical Solutions business segment, as well as a higher margin mix and continued disciplined labor management within Business & Industry. During the quarter, we generated adjusted EBITDA of approximately $93 million at a margin rate of 5.6% versus $88.4 million and 5.4% last year.
Now turning to our segment result, as Susie stated earlier, our Healthcare segment was seamlessly integrated into our B&I, Education and Technical Solutions segments during the quarter. We are already starting to see some of the benefit from the new structure. For example, we have begun to pursue and have seen initial success with escalations and the optimization of route-based services, leveraging the B&I network and Healthcare account.
Moving to B&I, B&I reported revenue of $807.9 million versus $822.6 million last year. The year-over-year decline in revenue is attributable to the loss of certain account, mainly lower margin and underperforming contracts that we did not retain given unfavorable pricing dynamics. B&I continued to expand with large national accounts that complement our growth strategy in the current labor market.
Operating profit for the quarter was $45.3 million for a margin rate of 5.6%, reflecting an approximately 70 basis point increase versus last year. As Scott discussed earlier, our discerning approach to labor management and pricing renewals drove this increase and B&I continued to perform well in this challenging environment.
Aviation revenues were $263.3 million, reflecting a $12 million negative impact related to ASC 853 as a result of the accounting for public sector parking leases. These amounts were previously reported as rental expenses, but are now classified as contra revenue. Organic growth for the quarter was 5.7%, reflecting new business including the continued expansion of our catering logistics services, and a continued growth in our international operations.
Operating profit was down approximately $1 million to $8.6 million for margin rate of 3.3%. While we see a strong pipeline in Aviation, the business continues to underperform versus expectations as higher levels of overtime and tight labor conditions continue to negatively affect this segment.
Technology & Manufacturing reported revenues of approximately $227 million versus $231 million last year, with operating profit growing to $17 million for a margin rate of 7.5% versus 7.3% last year. These results reflect a loss of certain account, partially offset by the addition of new business wins within hi-tech and logistics clients. Operating margin expansion versus last year was driven by lower reserves established for client receivables and the loss of certain lower margin account. We continue to monitor the pace of expansion, particularly with our manufacturing clients, for any change in decision making or scope.
Revenue in education was $215.4 million and operating profit with $12.6 million for a margin rate of 5.8%, which expanded 24 basis points versus last year. As Scott noted, we are excited about our new go-to-market strategy given the rationalization of our Education portfolio following some softness in the recent buying season.
Technical Solutions reported revenues of $165.7 million, up 27.6% organically versus last year. This represents an all-time quarterly high since the reorganization of this business in 2017, driven by broad-based demand in the US. Energy project continued to expand with municipalities and large school systems. We recently announced contract wins with Warren County, Pennsylvania, and Aiken County Public Schools in South Carolina. The two mega projects that I highlighted in Q2 have also contributed to this revenue growth.
Also, our EV charging business has also expanded aggressively this year with sales growth outperforming any other year. Clearly, we are all thoroughly excited about the growth of our Technical Solutions business and how well our solutions are resonating in the market. However, I would like to reiterate my sentiments from last quarter. Growth in this business is project-based and has historically grown in the high-single digit to low teen range. Current performance does not necessarily signal a new long term outlook.
Operating profit for segment was $17.9 million at a 10.8% margin compared to $13.1 million and 10% margins last year. This reflects higher project revenue and lower motivation expense following the impairment of our UK business at the end of last year. Partially offsetting these results was the blend of our project and related churn rate. And again, these results reflect a $1.3 million impact related to the treatment of commissions under ASC 606 given Technical Solutions exceptional growth.
Turning to cash and liquidity, cash flow from operations was $57.6 million during the quarter. We've seen a slight increase in our DSOs over the last several months that is attributable to a few items, including working capital needs for our larger Technical Solutions project and some delays due to unique billing reconciliations in Aviation. For the remainder of the year, we remain staunchly focused on reducing our DSOs.
We ended the quarter with total debt, including stand by letters of credit, of $1.1 billion and a bank adjusted leverage ratio of approximately 3.2 times. During the quarter, we paid our 213th consecutive quarterly cash dividend for a total distribution of $11.9 million.
Now turning to guidance. As stated in our press release, we are reiterating our guidance outlook for the year. We continue to expect GAAP income from continuing operations to be in the range of $1.70 to the $1.80, and $1.95 to $2.05 on an adjusted basis. This guide includes the impact from the new accounting pronouncements, ASC 606 and ASC 853, which we believe could be approximately $0.05 for the year.
Looking at fiscal 2020, in line with Scott's commentary, we remain cautious regarding retention and continue to monitor labor carefully for the remainder of the year. Based on our visibility in the near term, we're expecting to go-forward to have a very similar operating environment to this year and a corresponding level of pressure on retention.
Additionally, while helping us navigate the current challenging environment, we continue to make investments in HR and IT projects as part of our commitment to elevating our people, processes and systems. On the IT and systems front, as Scott graciously acknowledged, we just closed our first quarter under our new ERP system in the UK. This was the first step to our phased implementation roadmap.
Our target dates have shifted slightly. Given our year end and to ensure we have accounted for all the testings, training and changed management strategies necessary to launch in North America, we now intend to go live in North America in early 2020 rather than later this calendar year. Canada will be the first North American launch and the US will follow shortly thereafter.
With all the changes we have implemented over the past several years and continuing in the foreseeable future, I've seen an admirable level of adaptability from the entire organization, and I thank everyone for enabling us to make the necessary progress to strengthen ABM for our future.
Operator, we are now ready for questions.
Questions and Answers:
Operator
[Operator Instructions] Our first question comes from the line of Andy Wittmann with Robert W. Baird. Please proceed with your question.
Andrew Wittmann -- Robert W. Baird -- Analyst
Great, and good morning. I have a few questions here to start out with, but I guess the first one is for Scott. I wanted to get a sense from you as to the outlook here. Obviously, I think the exits that you've made in parts of your business, including B&I and other segments as well, are clearly contributing to the margin performance that you're seeing in those segments. Given that it sounds like the labor market continues to be challenging for you guys, it sounds like basically potential for more exits to continue.
So with that in mind, Scott, I wanted to get your sense as to what the revenue trends could look like in your key segments over the next several quarters? Obviously, you walked away from some business that's going to weigh on the revenue trends into next year, but how should we be thinking about that in general, given the challenges that you're facing there and the discipline that you've gone to here in the last couple of years?
Scott Salmirs -- President and Chief Executive Officer
We don't give revenue guidance, but I will tell you, well, we think next year will look pretty stimulus to this year. We don't expect any dramatic change. I think the discipline that you pointed out is not going to change, but we will be adding salespeople. We're going to continue to grow the business. We're on record pace this year, and hope to be next -- last year's performance. So, still healthy on the new business front, but I think next year will look a lot like this year.
Andrew Wittmann -- Robert W. Baird -- Analyst
Okay. That's helpful. I think it's probably a similar question, but in a little bit different vein on the Technical Solutions portion here. I mean, obviously, this is the segment that carried the quarter. This is probably the area that most people will be surprised with even if you guys aren't internally. But we heard Anthony's commentary, I guess, about this is not the way we should be thinking about the long term. But can you just talk about the backlog of work that you have there, if that gives you confidence for at least high single-digit growth here as we move into '20? And then just this is a project business, that means, it could be more economically sensitive. And I wanted to understand, if you guys are seeing any cracks in the foundation given everyone's concern about the economy and how that could be affecting that project-based business?
Anthony Scaglione -- Chief Financial Officer
Andy I'll take the first part of that question. So, our revenue continues to really benefit from a robust backlog, the churn which is the project conversion rate in our pipeline, which is translating into the growth that you're seeing and we continue to see a great amount of growth in that in the short term. As I mentioned previously, when we see backlog and churn of roughly $150 million at 20%, those are healthy indicators of the business and our backlog is well in excess of those amount. So for the short and medium term, we don't see any real change in terms of the trajectory for the business. But as Scott mentioned in his prepared remarks, it is a business that is project-based, and therefore, we have to continue to invest into sales people. But it's resonating quite dramatically with our customer base. And we don't see anything that should impact that in the short term.
Scott Salmirs -- President and Chief Executive Officer
I mean, look, and for us, Andy, this is -- I'll tell you, like, if we talk about potential slowdown, if you think about how we performed in the last recession, which was the great recession, which was pretty dramatic, we did well as a firm. We didn't have Technical Solutions then, we didn't have that lever. And if you think about it from a firm standpoint, we were organized by service line back then. So when we were helping to solve problems with clients back then, it was kind of a one solution thing, right? If it was a janitorial assignment, we talk about how that helped them through the recession from janitorial. And you know how well we performed relative to others as a firm last time.
Well, now we can talk to them because of the way we structure our Industry groups, hopefully, we can provide solutions with other service lines, but on top of that, we have the Technical Solutions lever that, as you know with these project-based capital, they're not operating in terms of an impact to a client in a recession. So it's capital and it reduces operating costs. So we think the Technical Solutions team should be really well positioned if the economy turns down.
Andrew Wittmann -- Robert W. Baird -- Analyst
That's helpful. I have one other question for now, and I might jump in the question queue later, but it has to do with cash flow. And you guys mentioned that DSOs were up a little bit. You had a big target for free cash flow this year that you previously articulated. It seems like the fourth quarter would have to be unusually strong to get to that $200 million level of free cash flow. Anthony, how should we be thinking about the free cash flow here for the year?
Anthony Scaglione -- Chief Financial Officer
Great. So our free cash flow for the year-to-date, as I mentioned, is somewhat disappointed due to a few reasons, DSO slippage, primarily in our Aviation, but a little slippage across all of our industry group and nothing systemic, but slippage, and due to a larger project-based work with some working capital tie up. That's the type of tie up that I like. Right, at the end of the day, because it's indicative of us growing that pipeline and growing that business.
But given all those factors and given where we stand at the end of Q3, and along with our outlook for the remainder of the year, we expect our free cash flow will be closer to the $175 million mark versus the $200 million plus mark that we achieved in 2019. So a little bit down, but we're constantly focusing on it on this. And we are also looking to improve the DSO in Q4 and beyond.
Andrew Wittmann -- Robert W. Baird -- Analyst
Cool. Thank you very much.
Operator
Thank you. Our next question comes from line of Sean Eastman with KeyBanc Capital Markets. Please proceed with your question.
Sean Eastman -- KeyBanc Capital Markets -- Analyst
Hi, team. Thanks for taking my questions. I guess first one from me is just reading between the lines on the prepared remarks. It seems like assuming the status quo in the current operating environment that it's going to be pretty tricky to expand margins in fiscal '20. Am I thinking about that correctly?
And secondly, it would be helpful at this point to just round up some of the headwinds and tailwinds as we think about next year just in terms of maybe some non-recurring items, the discrete tax items, where the level of IT spend is going, things like that, just so we can think about some of the puts and takes really out here.
Anthony Scaglione -- Chief Financial Officer
Sure. Good questions. So I think when we look at margins, we look at it in the operating segments and then you could look at the bottom line EBITDA. So, for us, it's so core in this market to protect the operating margins in the segments. And, we've done a really good job of that. I think surprising a lot of folks, to be quite honest, right, on how well we've done and we expect to be as disciplined next year to protect those margins. As it flows through to bottom line margins, yeah, that can be pressured because we are making investments in our IT systems and HR.
And lot of this was planned starting back in 2016, when we said, how do we accelerate this Company. We said right out of the gate that our systems were not where they need to be, our process wasn't where we need to be. So these were all planned investments that have come into fruition. And it has been a little bit more acute on the HR side, because we had to react to this environment, right. We hire 70,000 people a year, right. So we have to make those investments. So you will see incremental year-over-year in that corporate side related to HR and systems that will pressure the flow through on the bottom line margins, but we would encourage everyone to look to the operating segments.
Sean Eastman -- KeyBanc Capital Markets -- Analyst
Okay. So, I mean all in, does that mean margins might actually tick down next year? Just trying to get to -- just make sure we're thinking about things correctly.
Anthony Scaglione -- Chief Financial Officer
Yeah. I mean, look, we're still racking up the budget. We are just entering into the fourth quarter, but there is a chance that it will head down next year, all things being equal.
Sean Eastman -- KeyBanc Capital Markets -- Analyst
Okay. Got it. That's helpful.
Anthony Scaglione -- Chief Financial Officer
And again, I would say, look at our operating segments versus bottom line EBITDA. The operating segment is the health of what we're doing.
Sean Eastman -- KeyBanc Capital Markets -- Analyst
I get it. And I guess another question is just, this year we put the HR system in place. You've got the card based time and attendance system in place. The ERP backup consolidation is under way. I'm wondering, where the incremental IT investments are going next year exactly?
Scott Salmirs -- President and Chief Executive Officer
Yes. Sean, it's not incremental. So, some of the systems that we're investing in today go live in the next fiscal year. So, take our US ERP that can just become part of the operating environment next year. So, It's all in line with my previous remark in Q2 in terms of the year-over-year impact related to IT and it's really just a deferral of expense that we expected this year being deferred in to the next fiscal year. So from a cash flow perspective, the investments that we're making should temper off because some of the -- as we get the systems up and running and then, we move to a more operating environment in terms of the expense.
Yeah. And the incremental side, if there's going to be incremental side, that will be really around HR, because we think we're going to continue to invest in. It's so critical for us, right, hiring, speed-to-hire in this market, we've said this for a while now, someone comes in and fills out an application, you want to close it in that day or the next day. You wait a week, they're going to have a job somewhere else, right. So we're bringing on recruiters, we're enhancing our systems and we're standardizing practices.
Sean, if you were to go back to 2016, everything in this firm was distributed into the field. We have 300 branches. They all have their own hiring practices, their own ways of doing things. We're centralizing now into more of a corporate orientation where hiring practices, onboarding, training, all are going to be standardized with best practices, which was really the theme of 2020 Vision. So, there will be some incremental cost, but you'd expect that because we don't believe the labor crisis is going abate in 2020. I don't think anyone does.
Sean Eastman -- KeyBanc Capital Markets -- Analyst
Yeah. It makes a lot of sense. And last one from me just on free cash flow outlook, revised down a little bit for fiscal '19. But I'm wondering how to think about next year? Will some of the Aviation receivables unwind, should we see receive decent free cash flow growth next year in your view? [Indecipherable] Anthony.
Anthony Scaglione -- Chief Financial Officer
Yes, I think it's a little too early. And at year end we will provide the outlook. In terms of the Aviation, it's a challenging, consolidated customer base that I don't think is -- I don't think we're any different than any supplier that deals with the aviation, big clients and big customer base in terms of their ability to drag out their table. So we're working actively to ensure that where we work with them and ensure that the DSOs are a focus area and they have been a focus area. But we also have some incremental costs, as Scott mentioned, but offset by investments that we're making today in our systems, that should abate next year. So overall, we see continued good cash flow generation for the future.
Sean Eastman -- KeyBanc Capital Markets -- Analyst
Okay. And I will just sneak one more in. Apologies to the other people on the call, but maybe you could just update us on the anticipated deleveraging trajectory and whether you guys think you might be back in the market for an acquisition at some point in FY '20?
Scott Salmirs -- President and Chief Executive Officer
Yeah. I mean, that's always been the plan. When we did the GCA acquisition in September '17, we said, we're going to take a pause on acquisitions for the next 18 months, 24 months because, first of all, we had to integrate GCA. We were over 4 times levered. And we said we want to get under 3 times lever before we go back on the market. So that's where we'll be in 2020. And we expect if there is an opportunity that makes sense for our strategy, that we'll be acquisitive in 2020 for the right opportunity.
Sean Eastman -- KeyBanc Capital Markets -- Analyst
Thanks so much, gentlemen. I appreciate it.
Operator
Thank you. Our next question comes from line of Tim Mulrooney with William Blair. Please proceed with your question.
Tim Mulrooney -- William Blair -- Analyst
Good morning.
Scott Salmirs -- President and Chief Executive Officer
Good Morning. Tim.
Tim Mulrooney -- William Blair -- Analyst
Can you guys dive a little deeper into the conversation that you're having with clients these days? I mean, it sounds like maybe they're incrementally more cautious than maybe they were six months ago. Is that a fair characterization, and is there any more color you can share with investors this morning?
Scott Salmirs -- President and Chief Executive Officer
Sure. That's good. Yeah. I think everyone's more cautious, right because, I mean, I don't have to tell you, right. [Indecipherable], is there tariffs or there are no tariffs, right, what's going on with trade wars, with the potential recession. So, everyone is in this mode of what's next, but we still have really good traction, good conversations with clients. And I think they appreciate what we're doing and the data that we bring. We are different than many competitors because we do think we have better analytics. So a lot of times they look to us for insight of what we're seeing with other clients, which is where our scale helps because we could rationalize what's going on in the market across different regions. But they are active conversations and everyone's just curious about what everyone else is doing and where the economy is going.
Tim Mulrooney -- William Blair -- Analyst
Okay. Thanks. Kind of along that same line, Scott, given all the changes that you've made in the portfolio, you and Anthony, and the operational changes you've done over the last couple years, I mean, would you expect the business to perform differently in the next slowdown as compared to the last several recessions?
Scott Salmirs -- President and Chief Executive Officer
I would have to say yes, and it's what I alluded to earlier. Now that we're an industry group format and not selling single services, hopefully, we have more solutions to bring to the clients to get better traction. We like to think we have better data now, better analytics to help clients understand what their options are from a cost standpoint, from an efficiency standpoint, if they make specification changes. We have Technical Solutions now, we have this extra component to say, look, we know you're pressured on cost, here's an opportunity to reduce energy, right, and become more efficient. So we think we are much better positioned in a recession as a firm. And again, I'll read it back, it was a terrible period for our economy in '08 and '09 last time, and we did, relatively speaking, pretty well. So, hopefully, that'll prove out again and with a little plus sign next time.
Tim Mulrooney -- William Blair -- Analyst
Okay. Thank you. And then, Anthony, just one more for you. ASC 606 and ASC 853, I think, you said that could be a favorable $0.05 impact for the full year. Where are we today, what's the impact today so that I can understand the implied impact for the fourth quarter? Thank you.
Anthony Scaglione -- Chief Financial Officer
Yes. Year-to-date, we're roughly $0.07 of a positive impact. And if you recall, when we initially gave guidance back in December of last year, we had anticipated $0 to $0.05. And now it's primarily related to the uninstalled component, which was the carryover from that fiscal '18. So, at this point, we continue to feel it's going to be closer to that $0.05. It's, obviously, going to be somewhat contingent on operations, but that's what we're going with in terms of our guidance for the full year.
Tim Mulrooney -- William Blair -- Analyst
Got it. Thank you.
Operator
Thank you. Our next question comes from line of Tate Sullivan with Maxim Group. Please proceed with your question.
Tate Sullivan -- Maxim Group -- Analyst
Hi. Thank you. Thanks. Good morning. First on Education, I mean, the revenue was up 4% year-over-year, but you mentioned some aggressive bidding, and then, I think you indicated slightly higher margins in Education. I mean was it below planning, or did you lose bids you thought you'd win, or can you just give more context to that comment, please, because it seems it certainly performed better than some of your other segments?
Anthony Scaglione -- Chief Financial Officer
Yeah. Thanks for the question. Generally, we were disappointed with the buying season, the execution, and that was really a function of two things. One was the pricing environment, as well as the realization on new sales and retention. That being said, the operating profit came in line. We were able to offset our labor costs by good overhead savings and other savings within the mix, but clearly disappointed by the buying season, which really impacts half the business. It's really the K-12. The other half on the university, or higher res side, that buying season is throughout the year. So, to Scott's earlier remarks around our new go to market strategy and leading with solutions, we remain optimistic that the next 12 months will produce a better operating environment and hopefully, a better margin pull through than we've seen this year.
Tate Sullivan -- Maxim Group -- Analyst
Okay. Thank you. And well, switching to Aviation real quickly. Did I hear you say organic growth rate of 5.7% in one of the segments in Aviation, or can you just go back and review that comment, please?
Andrew Wittmann -- Robert W. Baird -- Analyst
We've had organic growth in Aviation, but we've also had some contraction in the US business. So when we look forward, while new sales and retention have been somewhat of a challenge, we're seeing good opportunities as it relates to specifically our fueling and catering in our UK operations, and I believe that comment was in relation to our service concessions.
Tate Sullivan -- Maxim Group -- Analyst
Service. Okay. Thank you. And then last for me. And then in Technical Solutions, can you just give some context, what specifically do you do in EV charging?
Scott Salmirs -- President and Chief Executive Officer
So in EV charging we will actually do the installation, we will partner with the actual hardware companies, and then, we'll go to big manufacturers, someone like a BMW or Porsche, and we'll say, look for all your dealerships or in all the locations you want in North America, let's plan that out, and then we do kind of a full turnkey installation and then try to lock in the servicing after that. This business has grown for us dramatically. We are the clear number one now in this segment and it's getting more traction and we haven't even scratched the surface yet of cross-selling this to our clients. We're just starting, but this is kind of kudos to our ATS team. This is all organic growth that they're finding out there. And it's been spectacular for us. And as we all know, the trends are heading in such a positive direction. So really going to be a good platform for us.
Tate Sullivan -- Maxim Group -- Analyst
Just quick follow up on that. Do you currently do the EV charging service for any of clients and janitorial service, for instance, or does that go to your point about starting that effort?
Scott Salmirs -- President and Chief Executive Officer
We do, but it's more spotty than we like, right. And that's part of really for us getting more mature at cross-selling.
Tate Sullivan -- Maxim Group -- Analyst
Okay. Thank you for those comments.
Scott Salmirs -- President and Chief Executive Officer
Thanks.
Operator
[Operator Instructions] Our next question comes from line of Marc Riddick with Sidoti & Company. Please proceed with your question.
Marc Riddick -- Sidoti & Company -- Analyst
Hi. Good morning.
Scott Salmirs -- President and Chief Executive Officer
Good morning.
Marc Riddick -- Sidoti & Company -- Analyst
I wanted to touch on -- a lot of my other questions are already answered. I just wanted to touch on maybe some of the progress or some of the areas that you're looking at as far as new service offerings. You touch a little bit on some of those earlier, but I just want to get a sense of where you're seeing opportunities and some of the initial benefits. Whether it's the airplane fueling assignments or some of the other things that we might look forward to support for new services? Thanks.
Scott Salmirs -- President and Chief Executive Officer
Yeah. So I think we've seen what we could do with fueling and catering. And that's really just -- you're talking about something that really over the last 12 months to 18 months has really started taking off, no pun intended, in the Aviation sector. So as we look and build on that and let's go back to the ATS group and how really EV charging started organically outside of the core projects, we were starting to look at how much work we're doing in data centers and mission critical stuff. I think that's an area that we're going to be exploring over the next 12 months to 24 months, how this could really turn into something, because if I were to give you the list, and I'm not allowed to, but if I were to give you a list of the Silicon Valley based firms that we do work for their data center and their power testing and have been, think about what's going on with cloud, right, which is essentially data centers. The expansion plans for our clients in terms of opening and lighting up data centers is actually mind blowing. And we're right there with them.
So I think there is opportunities for us. What we do is kind of, we think about leveraging the adjacencies, right. We have our core businesses. What are the adjacencies and how do we leverage them, and that's all wrapped into our strategy for next year and the next down three years to five years.
Marc Riddick -- Sidoti & Company -- Analyst
Okay. Great. Thank you very much.
Scott Salmirs -- President and Chief Executive Officer
Great. Thanks Marc.
Operator
Thank you. Ladies and gentlemen, that concludes our question-and-answer session. I'll now turn the floor back to management for any final comments.
Scott Salmirs -- President and Chief Executive Officer
Yeah. I just want to thank everybody for the call. Sadly, summer is over and we are charging into fall here. But we're excited to come back to you in Q4. We'll have our budgets all wrapped up. We'll talk about how we finished the year. Hopefully, we are going to have some good announcements on our sales trajectory, which we've been spending so much time on and so much focused on. So looking forward to the follow up conversations.
Thanks to everyone. And again, I just have to thank my team for everything they've done to get us to this point. It's really proven our team. And thank you.
Operator
[Operator Closing Remarks]
Duration: 47 minutes
Call participants:
Susie A. Choi -- Vice President of Investor Relations and Treasurer
Scott Salmirs -- President and Chief Executive Officer
Anthony Scaglione -- Chief Financial Officer
Andrew Wittmann -- Robert W. Baird -- Analyst
Sean Eastman -- KeyBanc Capital Markets -- Analyst
Tim Mulrooney -- William Blair -- Analyst
Tate Sullivan -- Maxim Group -- Analyst
Marc Riddick -- Sidoti & Company -- Analyst
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | ABM Industries Inc (NYSE: ABM) Q3 2019 Earnings Call Sep 6, 2019, 8:30 a.m. ET Contents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks: Operator Greetings and welcome to the ABM Industries Third quarter 2019 Earnings Call. [Operator Instructions] I would now like to turn the conference over to your host, Susie Kim, Vice President of Investor Relations and Treasurer for ABM Industries. | Operator [Operator Closing Remarks] Duration: 47 minutes Call participants: Susie A. Choi -- Vice President of Investor Relations and Treasurer Scott Salmirs -- President and Chief Executive Officer Anthony Scaglione -- Chief Financial Officer Andrew Wittmann -- Robert W. Baird -- Analyst Sean Eastman -- KeyBanc Capital Markets -- Analyst Tim Mulrooney -- William Blair -- Analyst Tate Sullivan -- Maxim Group -- Analyst Marc Riddick -- Sidoti & Company -- Analyst More ABM analysis All earnings call transcripts 10 stocks we like better than ABM Industries When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. ABM Industries Inc (NYSE: ABM) Q3 2019 Earnings Call Sep 6, 2019, 8:30 a.m. ET Contents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks: Operator Greetings and welcome to the ABM Industries Third quarter 2019 Earnings Call. | Operator [Operator Closing Remarks] Duration: 47 minutes Call participants: Susie A. Choi -- Vice President of Investor Relations and Treasurer Scott Salmirs -- President and Chief Executive Officer Anthony Scaglione -- Chief Financial Officer Andrew Wittmann -- Robert W. Baird -- Analyst Sean Eastman -- KeyBanc Capital Markets -- Analyst Tim Mulrooney -- William Blair -- Analyst Tate Sullivan -- Maxim Group -- Analyst Marc Riddick -- Sidoti & Company -- Analyst More ABM analysis All earnings call transcripts 10 stocks we like better than ABM Industries When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. ABM Industries Inc (NYSE: ABM) Q3 2019 Earnings Call Sep 6, 2019, 8:30 a.m. ET Contents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks: Operator Greetings and welcome to the ABM Industries Third quarter 2019 Earnings Call. | Operator [Operator Closing Remarks] Duration: 47 minutes Call participants: Susie A. Choi -- Vice President of Investor Relations and Treasurer Scott Salmirs -- President and Chief Executive Officer Anthony Scaglione -- Chief Financial Officer Andrew Wittmann -- Robert W. Baird -- Analyst Sean Eastman -- KeyBanc Capital Markets -- Analyst Tim Mulrooney -- William Blair -- Analyst Tate Sullivan -- Maxim Group -- Analyst Marc Riddick -- Sidoti & Company -- Analyst More ABM analysis All earnings call transcripts 10 stocks we like better than ABM Industries When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. ABM Industries Inc (NYSE: ABM) Q3 2019 Earnings Call Sep 6, 2019, 8:30 a.m. ET Contents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks: Operator Greetings and welcome to the ABM Industries Third quarter 2019 Earnings Call. |
29381.0 | 2019-08-28 00:00:00 UTC | ABM Industries (ABM) Shares Cross Below 200 DMA | ABM | https://www.nasdaq.com/articles/abm-industries-abm-shares-cross-below-200-dma-2019-08-28 | nan | nan | In trading on Wednesday, shares of ABM Industries, Inc. (Symbol: ABM) crossed below their 200 day moving average of $36.04, changing hands as low as $35.98 per share. ABM Industries, Inc. shares are currently trading off about 1.3% on the day. The chart below shows the one year performance of ABM shares, versus its 200 day moving average:
Looking at the chart above, ABM's low point in its 52 week range is $25.64 per share, with $42.67 as the 52 week high point — that compares with a last trade of $36.21.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In trading on Wednesday, shares of ABM Industries, Inc. (Symbol: ABM) crossed below their 200 day moving average of $36.04, changing hands as low as $35.98 per share. The chart below shows the one year performance of ABM shares, versus its 200 day moving average: Looking at the chart above, ABM's low point in its 52 week range is $25.64 per share, with $42.67 as the 52 week high point — that compares with a last trade of $36.21. ABM Industries, Inc. shares are currently trading off about 1.3% on the day. | In trading on Wednesday, shares of ABM Industries, Inc. (Symbol: ABM) crossed below their 200 day moving average of $36.04, changing hands as low as $35.98 per share. The chart below shows the one year performance of ABM shares, versus its 200 day moving average: Looking at the chart above, ABM's low point in its 52 week range is $25.64 per share, with $42.67 as the 52 week high point — that compares with a last trade of $36.21. ABM Industries, Inc. shares are currently trading off about 1.3% on the day. | In trading on Wednesday, shares of ABM Industries, Inc. (Symbol: ABM) crossed below their 200 day moving average of $36.04, changing hands as low as $35.98 per share. The chart below shows the one year performance of ABM shares, versus its 200 day moving average: Looking at the chart above, ABM's low point in its 52 week range is $25.64 per share, with $42.67 as the 52 week high point — that compares with a last trade of $36.21. ABM Industries, Inc. shares are currently trading off about 1.3% on the day. | In trading on Wednesday, shares of ABM Industries, Inc. (Symbol: ABM) crossed below their 200 day moving average of $36.04, changing hands as low as $35.98 per share. ABM Industries, Inc. shares are currently trading off about 1.3% on the day. The chart below shows the one year performance of ABM shares, versus its 200 day moving average: Looking at the chart above, ABM's low point in its 52 week range is $25.64 per share, with $42.67 as the 52 week high point — that compares with a last trade of $36.21. |
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And at the moment, it might actually make sense for investors to seek out small-cap dividend stocks to buy, as counterintuitive as they might seem.
Despite the strong start to the new year, the Russell 2000 Index of small caps has trailed large-cap stocks - as represented by Standard & Poor's 500-stock index - in a big way since late February. That's when the small-cap rally peaked. For the year-to-date, the S&P 500 has gained 19.1%, while the smaller-company index has gained 14.6%.
This lull might ultimately prove a buying opportunity, however, and for small-cap dividend payers in particular. Waning bond yields are increasingly sending investors on a search for yields, and few large-cap income plays have proven up to the task.
Here's a rundown of 20 small-cap dividend stocks to buy now. Remember that buying shares of any small company - even a dividend payer - may come with added risks, which can include highly concentrated revenue streams and less access to financing. Also note that several of these companies will report earnings in the next couple of weeks, which will provide more clarity into their financial situations.
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ABM Industries
Market value: $2.7 billion
Dividend yield: 1.8%
It's possible you work for an organization that calls ABM Industries (ABM, $41.05) one of its service providers. The company offers a variety of building-management solutions including cafeteria operations, lighting systems and even linen care. ABM can even take care of athletic fields.
The opportunity is bigger than you might realize. The world spent almost $35 billion on third-party building managers last year, and that number is expected to hit $59.3 billion by 2023. Most institutions and building owners would rather simply outsource the tedious and often distracting work.
It's still a fragmented market. ABM is one of the biggest names in the business when excluding real estate investment trusts (REITs, which own the properties they manage), and it still secured just $6.5 billion in revenues over the past four reported quarters. That small piece of the market translates into an opportunity for growth, however, as scale even leads to greater cost-efficiency even with the often-ignored industry.
ABM Industries' dividend has grown reliably over the past decade; 2008's total full-year payout of 41 cents per share has improved to 72 cents over the past four quarters. That improvement in income has come alongside similarly reliable revenue and income growth.
The current yield of 1.8% is modest compared to other small-cap dividend stocks, but right around the market average. That said, ABM Industries is beefing up that dividend at a much faster pace than companies with similar risk-reward profiles.
SEE ALSO: 13 Super-Safe Dividend Stocks to Buy Now
Andeavor Logistics LP
Market value: $8.8 billion
Distribution yield: 11.5%*
The oil and gas sector has been torturous to investors for the past several years. Although the 2014 meltdown is well in the rearview mirror, the industry still is handling the repercussions of oversupply. Energy stocks remain a tricky trade.
There's a narrow sliver of the sector that's still relatively easy to own, however, which encompasses a small company called Andeavor Logistics LP (ANDX, $35.74).
Andeavor (formerly Tesoro) is considered a midstream company, meaning it transports oil and gas from one place to another, connecting refiners and their final customers. It operates almost 1,500 miles worth of pipeline with more than 60 different terminals. It also owns enough storage capacity to park up to 47 million barrels of someone else's oil that's waiting to be sold or delivered.
It wouldn't be entirely accurate to say that serving as a middleman of sorts completely shields a company from the ebbs and flows of oil prices. But pipeline owners are paid by the barrel or cubic foot transported, so as long as the world is burning oil and gas, Andeavor Logistics will be in demand. The company has an unusually steady revenue profile to verify it can stand up to the energy market's down-cycles.
Even more impressive is its payout history. Andeavor - an oddity among these small-cap dividend stocks to buy in that it is a limited partnership - doles out a dividend-like distribution that has expanded every year since 2012. The annualized payment is up from $1.07 per partnership unit then to a current pace of $4.04 per share.
* Distribution yields are calculated by annualizing the most recent distribution and dividing by the share price. Distributions are similar to dividends, but are treated as tax-deferred returns of capital and require different paperwork come tax time.
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Archrock
Market value: $1.4 billion
Dividend yield: 5.0%
Archrock (AROC, $10.47), like Andeavor Logistics, is categorized as a midstream player within the energy market, and rightfully so. It handles oil and gas after it's been extracted and processed, but before end-users take possession of it.
But the term "midstream" can mean a lot of things. In Archrock's case, it means the act of preparing natural gas in a way that makes it more efficient to handle.
In simplest terms, Archrock compresses natural gas so it can be easily stored, sent through a pipe or even drawn out of a well. The equipment needed to do all of this can be enormous, and expensive, so it generally makes more sense for a small driller to outsource the work and only pay for it when a project calls for it. Archrock hasn't faced any major headwind in terms of securing customers, though. As of the end of the first quarter of the year, 88% of its compressing horsepower was being utilized.
Like Andeavor Logistics, Archrock is relatively immune to wide fluctuations in the price of gas. Stripping out the impact of 2014's spinoff of certain revenue-bearing assets, when it was still called Exterran, the company's revenues and profits both remained surprisingly stable.
Regardless of its price, consumption of natural gas remains fairly consistent, which in turn supports a similarly reliable dividend that currently yields around 5% of the stock's price.
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Ares Captial
Market value: $7.7 billion
Dividend yield: 8.9%
Ares Capital (ARCC, $18.06) is not technically a stock. Indeed, it looks and feels more like a mutual fund than an individual equity, and as such sidesteps the risks as well as the rewards owning a piece of an individual company.
In spirit, though, Ares may be the quintessential way income-seeking investors plug into the small-cap market.
Ares Capital is classified as a business development company (BDC), meaning it provides capital to young, small startups that generally aren't publicly traded. Funding usually is offered in the form of loans, though in some instances there's an equity element involved. Organizations ranging from auto-parts markets to restaurants to dentistry groups to software developers - and more - are part of the Ares family, making loan payments back to the BDC which in turn become interest payments collected by Ares Capital shareholders.
The company's edge? The organization legally avoids any corporate income tax liability by passing along at least 90% of its investment income along to shareholders.
There's still risk involved to be sure. Namely, an economic headwind could adversely impact Ares Capital's borrowers the same way it would work against any for-profit entity. ARCC shares are no stranger to surprisingly wide swings either, especially given the stable nature of the business.
Even so, from a risk-versus-reward perspective, a solid business development company like Ares is among the most compelling and often-overlooked alternatives. BDCs also tend to be among the best-yielding small-cap dividend stocks to buy for high-income hunters, at yields stretching into the double digits at times.
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B&G Foods
Market value: $1.2 billion
Dividend yield: 10.1%
The name B&G Foods (BGS, $18.83) may not ring a bell, but certainly some of its brands will. B&G is the company that brings you Ortega taco shells, Green Giant frozen vegetables, Cream of Wheat and SnackWell's devil's food cookie cakes just to name a few.
The packaged food business wasn't particularly kind to investors last year, and B&G Foods wasn't exempted. Unlike more familiar names such as Hormel (HRL) and Mondelez (MDLZ), however, BGS stock hasn't snapped back. Instead, it has continued lower, reaching new 52-week lows last month. Concerns about cost control stemming from a modest degree of scale have weighed down the stock. Worries are growing about the safety of its dividend, which was increased just a year ago.
What's largely been overlooked, however, is that what B&G may lack in scale, it can offset with nimbleness and speed. Yes, the company is on pace to pay out more in dividends this year ($1.90 per share) than analysts expect it to earn ($1.80), it's in the midst of a significant cost-cutting effort that's moving quickly.
CEO Kenneth Romanzi explained in February, "So our 2019 plan is rooted in list pricing and cost savings initiatives that are more aggressive in 2019 than in 2018, to tame the higher inflationary pressures we expect. Both of these pillars are supported by sales growth consistent with our long-term objective of 0% to 2% top-line growth." B&G also recently announced the acquisition of the Clabber Girl baking-products brand, which should cost-effectively mesh well with its existing brands.
Even if the dividend is sliced in half, BGS still would yield nearly 5%. The doubters might have overshot their target.
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BGC Partners
Market value: $1.9 billion
Dividend yield: 10.1%
BGC Partners (BGCP, $5.57) is a brokerage firm, though not for retail investors. Rather, as Steve Azoury, founder of Michigan-based financial planning firm Azoury Financial, explains it, BGC is "a brokerage and market data service company that services clients, such as brokers, dealers and investment banks. This professional service company focuses on the purchase and sales of commodities, stocks and options, as well as real estate."
Its technology and trade-routing solutions offers its customers, and the clients of those customers, access to markets and information that would otherwise be difficult to plug into, including pricing and trading of credit default swaps and interest rate swaps.
It's a more reliable market than that of retail (ordinary) investors. Last year's revenue growth was 13%, while the analyst community expects sales to expand 10% for the year underway. Earnings may not be quite as consistent, but they're still stable and more than cover the current annualized dividend of 56 cents per share.
Azoury is a fan of the dividend too, which now yields at just above 10% thanks to the stock's pullback over the course of the past year.
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Clearway Energy
Market value: $3.5 billion
Dividend yield: 4.4%
Clearway Energy (CWEN, $18.05) is, in most regards, the ideal clean energy provider. Not only do its wind and solar power farms drive consistent revenue, but for the past few years, it has turned a profit more often than not. That's something too many companies in the business have been unable to say for too long.
Clearway can deliver up to 4.1 gigawatts of power, though it's differentiating itself in a way that other providers may want to consider. Namely, it's addressing location-specific and customer-specific challenges.
Earlier this year, the company entered a 40-year partnership with Duquesne University to help the school lower its electricity costs and improve reliability. It's just one of dozens of user-specific projects that will become increasingly necessary to make alternative energy a truly viable alternative to more traditional forms of power generation. EcoLab (ECL), MGM Resorts (MGM) and Whole Foods are just some of the other organizations that Clearway is working with.
This approach has facilitated a respectable dividend profile. The PG&E (PCG) bankruptcy forced Clearway to cut its dividend late last year, as it put a key power-provision contract up in the air. Prior to that, Clearway Energy was a model citizen among small-cap dividend stocks - and presumably will be again in the near future once the dust settles. Even now, though, the stock still pays more than 4%.
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Covanta
Market value: $2.2 billion
Dividend yield: 5.8%
Covanta (CVA, $17.18) is a trash disposal company, which is a resilient business model in and of itself. No matter what, consumers and corporations alike will have garbage to get rid of.
Covanta is much more than just a waste disposal name, however. It has turned the business into a science that turns trash into treasure.
It's called energy-from-waste, which accurately describes the process of collecting burnable gases produced from the natural decay of garbage. Every year, Covanta extracts enough methane from the garbage it collects to create 9 million megawatt hours of electricity. That's enough to keep the lights on at over 1 million homes. The company also recycles 600,000 tons of metal per year, or enough material to build 400,000 vehicles.
Those are revenue-bearing products for Covanta, which is paid by municipalities or directly by consumers to haul that very same waste away.
Although the company hasn't raised its quarterly dividend of 25 cents per share since the last quarter of 2014, it still has made that payment like clockwork every quarter in the meantime. And, despite sometimes paying out more than it earns, analysts have remained curiously bullish on Covanta. They collectively rate CVA stock at slightly better than a Buy, and sport a consensus target price of $19.00 per share. It's a testament to the direction the company is going, and at least in a small way an acknowledgement that the current yield of 5.8% is compelling.
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Invesco
Market value: 9.3 billion
Dividend yield: 6.2%
Most seasoned investors are familiar with the name Invesco (IVZ, $19.52). It's the company that manages several funds and ETFs, including the popular Invesco QQQ Trust (QQQ).
What most investors may not realize, however, is that Invesco's universe of investment options isn't limited to those trading under an Invesco label. The company also owns Oppenheimer Funds, amassing more than $1 trillion worth of managed assets under one roof late last year.
It's a business that's perfectly suited for driving dividend payments. Although the natural ebb and flow of the broad market increases and decreases the company's asset base from which it extracts a tiny fraction of a percent every quarter, it's a fraction of a percent that it knows it will be able to pocket each and every quarter. In other words, figure may change from one quarter to the next, but there's never a doubt that Invesco will be able to collect something for its fund-management efforts.
To that end, revenue and income have waffled over the course of the past several years, but even when the economy was in the gutter in 2008, Invesco was able to stay in the black.
Shares lost more than half their value in 2018, in part on skepticism of its Oppenheimer acquisition. However, that - as well as annual dividend growth since 2005 - has plumped up the yield to above 6%.
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Investors Bancorp
Market value: $3.1 billion
Dividend yield: 3.8%
With interest rates plausibly positioned to fall as we move deeper into the latter half of 2019, now doesn't feel like the time to consider banks. Banks enjoy stronger margins on their lending activities when interest rates are higher rather than lower.
The cause-effect relationship doesn't always stand up to scrutiny, however. It oversimplifies how consumers think and how lenders respond. In a so-so economy like the one in place now, slightly lower rates may well inspire a swell of fresh borrowing, offsetting crimped margins with sheer volume of loan growth.
And a smaller, nimble bank like Investors Bancorp (ISBC, $11.06) could easily navigate the pitfalls of falling rates that larger outfits such as Bank of America (BAC) or Citigroup (C) just can't.
That's what analysts seem to think is in the cards for the New Jersey-based bank, which sports a little more than $25 billion in assets, serviced through more than 145 branches in New Jersey and New York. Its financial results bumped into a headwind this year, but analysts are calling for earnings of 81 cents per share in 2020, which would be a nice improvement from this year's earnings outlook of 73 cents per share. The pros expect that to be driven by a 5% increase in revenues.
This small-cap dividend stock's payment has grown each year since 2016 and yields 4% - generous by bank standards.
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Landmark Infrastructure Partners LP
Market value: $425.2 million
Distribution yield: 8.8%
Odds are that most U.S. investors rely on, or see, at least one of Landmark Infrastructure Partners LP's (LMRK, $16.78) physical assets every single day. The company owns a network of wireless communication towers, billboards and renewable power plants from coast to coast.
It's the perfect sort of operation for driving revenue that ends up driving dividends. Though there are only modest growth opportunities on all three fronts, those opportunities are reliable, and consistent. Mobile devices are increasingly the norm, which will require more and more towers now that the 5G-powered internet of things is being built. Billboard advertising is always marketable, and now that solar and wind power have reached cost-parity with fossil fuels, alternative energy is finally profitable enough without subsidies to accelerate its adoption.
The proof of the pudding, so to speak, is the payout. The distribution, paid quarterly, has improved from an annual $1.06 per share in 2015 to $1.47 per share in 2018.
As an alternative, investors may also want to consider Landmark's Series A preferred stock, which trades as LMRKP. The cumulative preferred shares' payment is prioritized over any distributions extended to owners of common units. The coupon rate of 8.0% is also well above average, as is the current yield of 7.8%. That's less than LMRK's 8.8% yield, but preferred-stock owners enjoy a slightly higher degree of certainty.
Macquarie Infrastructure
Market value: $3.5 billion
Dividend yield: 9.7%
They may both call themselves infrastructure companies, but Macquarie Infrastructure (MIC, $41.07) is distinctly different than Landmark Infrastructure Partners. Macquarie operates storage facilities to the energy and chemical industries, a jet fuel and plane-hanger business and a Hawaii-based energy distributor.
It can feel like a bit of a moving target at times. Demand for air travel can be impacted by the perceived condition of the economy. And revenues are subject to changes in the price of crude oil. Chemical and energy companies also increase or decrease production according to demand, which can alter the need for storage.
However, for investors who can stomach the changes in its dividend that reflect changes to its profitability, the lofty current yield of almost 10% - among the highest of these small-cap dividend stocks to buy - might be well worth the risk.
There's reason to hope Macquarie's fiscal underpinnings are entering a phase of better stability. Oil prices are on the mend after last year's sizeable setback. The Energy Information Administration's outlook through 2020, however, says 2020's average price for U.S. crude oil should be around $63 per barrel. That's only marginally higher than current prices near $60. Airlines don't seem to be balking.
In fact, airlines continue to ramp up demand for new planes, reflecting continued growth in air travel that will drive the need for new hangars, too. Boeing (BA) believes the total number of aircraft in service by 2037 will be nearly double that of 2018's count.
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Navient
Market value: $3.2 billion
Dividend yield: 4.8%
Navient (NAVI, $13.44) operates in a tough but lucrative arena. The company primarily exists to help college students secure and then repay student loans. It's one of only a handful of companies the U.S. Department of Education has authorized to facilitate such a service, which eases the burden of borrowing for school by arranging a more affordable repayment plan. It also offers conventional consumer loans, though student loans are its bread and butter.
A quick glance at the company may raise red flags. Last quarter's revenues fell short of estimates, and per-share profits have been shrinking since 2014, when revenue slumped.
A closer look, however, suggests Navient's results are on the mend. Last quarter's earnings of 52 cents per share were up 11% year-over-year, marking a measurable profit turnaround effort since late 2017. Revenue has improved for eight consecutive quarters now, underscoring the idea that Navient is gaining traction that it couldn't a few years ago.
Meanwhile, education trends are in Navient's favor. A near-record number of 19.9 people were enrolled in college in the United States, while the 21 million students from 2010's peak level are still, for the most part, making payments on their loans. College enrollment is expected to remain on the upswing through 2027, when the National Center for Education Statistics expects 20.5 million students to be enrolled in college.
Office Properties Income Trust
Market value: $1.2 billion
Dividend yield: 8.4%
Real estate investment trusts are a reliable means of driving consistent income, even if growth prospects are modest. Not all REITs are built the same, however; some are better all-weather plays than others.
Riley FBR research analyst Bryan Maher suggests Office Properties Income Trust (OPI, $26.06) is a REIT with the potential to produce market-beating returns. He explains in his most recent analytical notes, "Over the next two to three quarters, we should begin to see a more appropriate valuation as the merger noise mitigates and the company executes on its de-leveraging plan and portfolio recycling initiatives."
The merger in question unwound a fairly complicated cross-ownership structure with Government Income Properties Trust and Select Income REIT. In essence, all three entities became one, but the analyst contends that most investors are still struggling to understand the new, combined organization. That should change. Maher writes, "As the company executes on its portfolio/balance sheet initiatives over the next several months, we will see a more appropriate relative valuation in OPI share."
That could lift the REIT closer to B. Riley FBR's target price of $50 - Wall Street's highest - versus the stock's current price near $26. In the meantime, buyers as OPI's current price will step in at a trailing yield of well more than 8%.
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Outfront Media
Market value: $3.8 billion
Dividend yield: 5.4%
Landmark Infrastructure Partners may own a nationwide network of billboards, but its stake in alternative energy properties and wireless communication towers dilutes its focus. Investors looking for a purer play on the outdoor advertising space may want to consider Outfront Media (OUT, $26.71).
The company takes large-scale signage to a whole new level. More than just billboards, Outfront Media owns and operates more than 400,000 displays, including thousands of so-called liveboards: large-screen televisions that can add movement and audio to create a more immersive experience for consumers. Consumers also see Outfront's work hanging as giant banners outside of high-rise building, on subway cars, on the sides of buses, and of course, ordinary billboards.
Perhaps more important, Outfront Media has found its groove, and stayed there. Quarterly revenue has grown on a year-over-year basis for eight consecutive quarters now; operating income has grown in six of the past eight. Analysts are calling for more of the same steady growth going forward too.
This small-cap dividend stock's payout hasn't moved much in the past five years, though its one change - a 6% bump in 2016 - was positive.
Patterson Companies
Market value: $1.9 billion
Dividend yield: 5.3%
Medical supplies distributor Patterson Companies (PDCO, $19.75) is hardly a favorite among analysts, who collectively rate it at slightly less than Hold. Their consensus price target of $22.15 is also not that much higher than the stock's current price.
Income-minded investors, however, will appreciate the current yield above 5% and dividend growth advance that so far has proven unstoppable.
Patterson Companies provides consumable and technologies for dental and veterinarian practices. Goods ranging from dental drills to office supplies to animal examination tables are all part of its portfolio, and more. Although it's not a high-growth arena, the arena does offer reliable growth. The continued aging of baby boomers has kept dentists unusually busy in recent years. That's one of the key reasons spending on dental care in the U.S. is expected to grow at an annual rate of 5% through 2025.
Pet mania is going strong, too. Americans shelled out a record-breaking $72.6 billion on their domesticated animals last year, with veterinary care accounting for more than $18 billion of it. Vet care is expected to be the fastest-growing piece of the market this year again.
Last quarter's earnings miss and a disappointing full-year outlook took a toll on the stock in June. It's noteworthy, however, that analysts didn't turn any more bearish when they had an opportunity to do so.
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PetMed Express
Market value: $322.6 million
Dividend yield: 6.7%
Speaking of pets, it's not just veterinarians benefiting from the boom. Companies that supply pet owners with prescription drugs for their furry friends are also well-positioned for growth.
That's PetMed Express (PETS, $16.03), first and foremost.
The stock has been on an uncomfortable journey since early 2018, giving up roughly two-thirds of its value as newcomers enter the online pet-pharmacy market. Chewy.com (CHWY), initially just an online retailer for pet basics like toys and food, entered the fray in the middle of last year. Walmart (WMT) waded into the same waters in May 2019.
The new competition appears to have taken a toll. When the company revealed fiscal fourth-quarter numbers in May, it reported its first quarterly revenue decline since 2015. A couple of key earnings miss since the middle of 2018, however, had already put the selling in motion. Walmart is sure to be a tough competitor as well.
All those newcomers, though, might be more bark than bite. Analysts are modeling 2019 as a difficult rebuilding year but forecast a return to modest revenue and earnings growth in 2020. What might be an overdone selloff has the stock paying a yield of 6.7%, on a dividend that has routinely grown for years.
Six Flags Entertainment
Market value: $4.5 billion
Dividend yield: 6.2%
Plenty of kids want to own an amusement park. As an adult, they can. Six Flags Entertainment (SIX, $52.87) is one of the last publicly traded theme park stocks that's not part of a much bigger, less-focused entertainment conglomerate.
Six Flags owns 26 parks in North America, most of which use the familiar moniker. In-season, 50,000 employees operate more than 900 rides, delighting and/or terrifying more than 32 million guests per year. Last year it generated nearly $1.5 billion in revenue - its ninth consecutive year of record sales - and this year's top line is expected to exceed that figure. Analysts see sales growing 4% in 2020 to $1.6 billion.
More important, Six Flags is profitable. More important than that, it generously lets shareholders participate in its success. Of last year's per-share earnings of $3.23, the company dished out $3.16 in dividends.
Six Flags also is one of the most exciting small-cap dividend stocks on this list. 2019 is shaping up to be a great year, and analysts are taking notice. KeyBanc analyst Brett Andress recently upgraded SIX to Outperform (equivalent of Buy), explaining his research suggested attendance was up 8% so far this year. The marketwide expectation varied from 4% to 6%. Wells Fargo recently upped its opinion of Six Flags as well, to Outperform. Analyst Timothy Conder said the amusement park chain's value-minded "getaway" played well in a slow growth economy, while a favorable tax environment could lead to "enhanced confidence toward modest dividend growth and share repurchases."
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Steelcase
Market value: $2.0 billion
Dividend yield: 3.5%
Shares of metal furniture and fixture company Steelcase (SCS, $16.83) plunged 11% in one day in June, in response to a concerning first-quarter report. It wasn't the first time SCS suffered that sort of setback; the stock has been tripped up multiple times since 2016.
There's a reason Steelcase was able to eventually stage a full recovery every time it has stumble, however. That is, while the earnings shortfall or outlook may seem troubling at the time, this is a company investors doubt will be held back for very long, if held back at all. Even in the midst of tariff-driven woes and a brewing economic headwind, SCS has recovered more than half the ground it lost on that June decline.
Although far from recession-proof, Steelcase has proven resilient and savvy. A string of acquisitions made in 2018 has proven fruitful, with targeted synergies driving the expected profit growth. Last quarter's earnings miss was the first in two years, and per-share profits still were higher on a year-over-year basis.
Steelcase's dividend has improved annually for years and sits at 14.5 cents per share, which comes out to 58 cents annually. Wall Street's pros expect the company to earn $1.28 per share this year, meaning it has plenty of wiggle room to maintain and even raise its dividend despite any income volatility the company might experience.
TerraForm Power
Market value: $3.1 billion
Dividend yield: 5.5%
If TerraForm Power (TERP, $14.62) rings oddly familiar, it may be because the company was implicated in the 2016 bankruptcy petition filed for, and approved for SunEdison. Though neither it nor its sister yieldco TerraForm Global were dragged into trouble by SunEdison, the implications of association were enough to hold shares of the sponsored-but-separate companies back.
That has changed dramatically of late. After two years of stagnation, TERP has finally broken out of a price rut, touching three-year highs this month.
Results are the driving force behind the stock's renewed strength. With the SunEdison debacle now in the rearview mirror, investors have been able to take note of accelerating revenue growth that has reached record levels this year. That progress has also pushed the company's operating profit and EBITDA to new highs. And more growth is in the cards, as the net cost of solar power is now at or near parity with fossil fuel-driven electricity. TerraForm's earnings are projected to more than triple from 2018's bottom line of 7 cents per share to 26 cents in 2020.
TerraForm itself is targeting 5% to 8% annual dividend growth through 2022. Combine the growth and dividend-growth aspects with a high yield north of 5%, and you have one of the most complete sets of positive investment attributes among these 20 small-cap dividend stocks.
TerraForm Power has the added advantage of being structured as a yieldco, which is short for "yield company." SunEdison developed it to optimize sustained, reliable dividend growth in mind. That structure still stands, even though SunEdison is out of the picture.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | ABM is one of the biggest names in the business when excluding real estate investment trusts (REITs, which own the properties they manage), and it still secured just $6.5 billion in revenues over the past four reported quarters. SEE ALSO: 25 Stocks Every Retiree Should Own ABM Industries Market value: $2.7 billion Dividend yield: 1.8% It's possible you work for an organization that calls ABM Industries (ABM, $41.05) one of its service providers. ABM can even take care of athletic fields. | SEE ALSO: 25 Stocks Every Retiree Should Own ABM Industries Market value: $2.7 billion Dividend yield: 1.8% It's possible you work for an organization that calls ABM Industries (ABM, $41.05) one of its service providers. ABM can even take care of athletic fields. ABM is one of the biggest names in the business when excluding real estate investment trusts (REITs, which own the properties they manage), and it still secured just $6.5 billion in revenues over the past four reported quarters. | SEE ALSO: 25 Stocks Every Retiree Should Own ABM Industries Market value: $2.7 billion Dividend yield: 1.8% It's possible you work for an organization that calls ABM Industries (ABM, $41.05) one of its service providers. ABM can even take care of athletic fields. ABM is one of the biggest names in the business when excluding real estate investment trusts (REITs, which own the properties they manage), and it still secured just $6.5 billion in revenues over the past four reported quarters. | SEE ALSO: 25 Stocks Every Retiree Should Own ABM Industries Market value: $2.7 billion Dividend yield: 1.8% It's possible you work for an organization that calls ABM Industries (ABM, $41.05) one of its service providers. ABM can even take care of athletic fields. ABM is one of the biggest names in the business when excluding real estate investment trusts (REITs, which own the properties they manage), and it still secured just $6.5 billion in revenues over the past four reported quarters. |
29383.0 | 2019-06-07 00:00:00 UTC | Friday Sector Laggards: Education & Training Services, Waste Management Stocks | ABM | https://www.nasdaq.com/articles/friday-sector-laggards%3A-education-training-services-waste-management-stocks-2019-06-07 | nan | nan | In trading on Friday, education & training services shares were relative laggards, down on the day by about 0.3%. Helping drag down the group were shares of Zovio (ZVO), down about 7.1% and shares of Laureate Education (LAUR) down about 2.2% on the day.
Also lagging the market Friday are waste management shares, down on the day by about 0.2% as a group, led down by Stericycle (SRCL), trading lower by about 1.3% and ABM Industries (ABM), trading lower by about 0.7%.
VIDEO: Friday Sector Laggards: Education & Training Services, Waste Management Stocks
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Also lagging the market Friday are waste management shares, down on the day by about 0.2% as a group, led down by Stericycle (SRCL), trading lower by about 1.3% and ABM Industries (ABM), trading lower by about 0.7%. In trading on Friday, education & training services shares were relative laggards, down on the day by about 0.3%. VIDEO: Friday Sector Laggards: Education & Training Services, Waste Management Stocks The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Also lagging the market Friday are waste management shares, down on the day by about 0.2% as a group, led down by Stericycle (SRCL), trading lower by about 1.3% and ABM Industries (ABM), trading lower by about 0.7%. In trading on Friday, education & training services shares were relative laggards, down on the day by about 0.3%. VIDEO: Friday Sector Laggards: Education & Training Services, Waste Management Stocks The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Also lagging the market Friday are waste management shares, down on the day by about 0.2% as a group, led down by Stericycle (SRCL), trading lower by about 1.3% and ABM Industries (ABM), trading lower by about 0.7%. In trading on Friday, education & training services shares were relative laggards, down on the day by about 0.3%. VIDEO: Friday Sector Laggards: Education & Training Services, Waste Management Stocks The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Also lagging the market Friday are waste management shares, down on the day by about 0.2% as a group, led down by Stericycle (SRCL), trading lower by about 1.3% and ABM Industries (ABM), trading lower by about 0.7%. In trading on Friday, education & training services shares were relative laggards, down on the day by about 0.3%. Helping drag down the group were shares of Zovio (ZVO), down about 7.1% and shares of Laureate Education (LAUR) down about 2.2% on the day. |
29384.0 | 2019-06-06 00:00:00 UTC | ABM Industries Q2 19 Earnings Conference Call At 8:30 AM ET | ABM | https://www.nasdaq.com/articles/abm-industries-q2-19-earnings-conference-call-8%3A30-am-et-2019-06-06 | nan | nan | (RTTNews) - ABM Industries Inc. (ABM) will host a conference call at 8:30 AM ET on June 5, 2019, to discuss Q2 19 earnings results.
To access the live webcast, log on to www.abm.com
To listen to the call, dial (877) 451-6152.
For a replay call, dial (844) 512-2921 with ID # 13690871.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - ABM Industries Inc. (ABM) will host a conference call at 8:30 AM ET on June 5, 2019, to discuss Q2 19 earnings results. To access the live webcast, log on to www.abm.com To listen to the call, dial (877) 451-6152. For a replay call, dial (844) 512-2921 with ID # 13690871. | (RTTNews) - ABM Industries Inc. (ABM) will host a conference call at 8:30 AM ET on June 5, 2019, to discuss Q2 19 earnings results. To access the live webcast, log on to www.abm.com To listen to the call, dial (877) 451-6152. For a replay call, dial (844) 512-2921 with ID # 13690871. | (RTTNews) - ABM Industries Inc. (ABM) will host a conference call at 8:30 AM ET on June 5, 2019, to discuss Q2 19 earnings results. To access the live webcast, log on to www.abm.com To listen to the call, dial (877) 451-6152. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - ABM Industries Inc. (ABM) will host a conference call at 8:30 AM ET on June 5, 2019, to discuss Q2 19 earnings results. To access the live webcast, log on to www.abm.com To listen to the call, dial (877) 451-6152. For a replay call, dial (844) 512-2921 with ID # 13690871. |
29385.0 | 2019-06-06 00:00:00 UTC | ABM Industries Inc (ABM) Q2 2019 Earnings Call Transcript | ABM | https://www.nasdaq.com/articles/abm-industries-inc-abm-q2-2019-earnings-call-transcript-2019-06-06 | nan | nan | Image source: The Motley Fool.
ABM Industries Inc (NYSE: ABM)
Q2 2019 Earnings Call
Jun 6, 2019, 8:30 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Greetings. Welcome to ABM Industries Second Quarter 2019 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answers session will follow the formal presentation. (Operator Instructions) Please note this conference is being recorded.
I will now turn the conference over to your host, Susie Kim, Investor Relations and Treasurer. Ms. Kim, you may begin.
Susie A. Kim -- Investor Relations and Treasury
Thank you all for joining us this morning. With us today are Scott Salmirs, our President and Chief Executive Officer; and Anthony Scaglione, Executive Vice President and Chief Financial Officer.
We issued our press release yesterday afternoon announcing our second quarter fiscal 2019 financial results. A copy of this release and an accompanying slide presentation can be found on our corporate website. Before we begin, I would like to remind you that our call and presentation today contain predictions, estimates and other forward-looking statements.
Our use of the words estimate, expect, and similar expressions are intended to identify these statements. These statements represent our current judgement of what the future holds. While we believe them to be reasonable, these statements are subject to risks and uncertainties that could cause our actual results to differ materially. These factors are described in this slide that accompanies our presentation, as well as in our filings with the SEC.
During the course of this call, certain non-GAAP financial information will be presented. A reconciliation of those numbers to GAAP financial measures is available at the end of the presentation and on the Company's website under the Investor tab.
I would now like to turn the call over to Scott.
Scott Salmirs -- President and Chief Executive Officer
Thanks, Susie, and good morning to everyone on today's call. We issued our press release yesterday afternoon, announcing our fiscal second quarter results. I will review a summary of these results and provide an update of our strategic progress as well. Our ABM team continues to rise to the occasion as we perform quarter after quarter, while simultaneously managing through our new system deployments, as well as the difficult macroeconomic labor environment. I'm pleased with our strong results for the second quarter, which met and in some cases exceeded our expectations.
We grew our business to a second quarter record of $1.6 billion in revenues. This was driven by 1.7% organic growth, which adjusted for the adoption of ASC 606 and 853. This is particularly commendable given our exceptional organic performance last year, which set up a tough year-over-year benchmark for the team.
GAAP continuing EPS was $0.45 a share or $0.47 a share on an adjusted basis and our adjusted EBITDA margin was 5.3% for the quarter. These metrics were also positively impacted by ASC 606 and 853 modestly. From a segment perspective, underpinning our operational results, with the Business & Industry and Technical Solutions segments. B&I, our largest and most scalable segment continues to highlight how we can protect and grow margin when managing our business strategically and discerningly in the current labor environment.
We expanded business with our large national accounts. As our clients grow, we continue to grow with them. We were also more disciplined about pricing, particularly as we saw escalations to account for the labor pressures we have been experiencing. Technical Solutions, our most profitable segment from a margin perspective, had another home run quarter as they continue to win business at an unprecedented pace in municipalities and the Education segment. During the quarter, we announced some great wins, including two energy projects with Bryan County, Georgia and the El Paso Independent School District.
We are now focused on churning through the robust pipeline in this segment. Given our year-to-date performance, we are raising the low end of our EPS guidance outlook to $1.70 to $1.80 per share on a GAAP basis and $1.95 to $2.05 per share on an adjusted basis.
Now let me provide you with an update on our progress against our key priorities for the year, which include growing our business in new sales while managing retention, continuing to navigate the difficult labor environment, optimizing our business through technology and data and generating consistent free cash flow.
New sales and retention continues to be an important area of focus. We achieved a record $590 million in new sales bookings for the first half of 2019, compared to $460 million at this time last year, which itself was a record. I'm thrilled about this momentum. We are well on our way to replicating the $900 million we achieved in 2018, an amazing accomplishment and validation of the sales investments we made last year particularly in Technical Solutions. While we are on track to achieve our new sales targets, managing retention is a separate and distinct endeavor that has required a great deal of planned focus. If you recall, we were prepared for a challenging retention here as we've been dedicated to seeking pricing escalations given the labor environment.
It's always been difficult to command price to the services we provide, but we are committed to pursuing the right decisions for our business. We developed an internal pricing council to increase the rigor around our internal processes and tight strategy to not only grow revenues but margin quality as well.
We have seen mixed results so far this year. Our overall retention rate is 1% to 2% of points lower than our historical average, which you'll remember we mostly anticipated. Many of our clients have been receptive to discussions around market pressures, but in some cases, we've had to be disciplined and more discerning about the contracts we choose to retain based on the labor shortage we began experiencing last year.
Our B&I segment provides a good example of how growth could moderate, but you can maintain and even grow margin and operating profits. There are some segments that are more challenging than others such as aviation which we saw the biggest decline in retention. Some will also work with due to pricing. We were also impacted by Delta's decision to insource some of their contracts. And remember higher wages and shortages of labor affect this group more than others, due to the protracted time applicants have in getting through the TSA background betting (ph). Speed to hiring is imperative in this market. That being said, our Aviation segment has a more robust pipeline than they've ever had. And as we continue to focus on business development and building a high talent organization, we see a path back to our original growth and margin vision for Aviation over the next 12 to 18 months.
Now let me spend a few minutes on the current labor environment. It's been a year since we first started seeing and discussing pervasive labor challenges, as a result of the decline in supply of qualified applicants. Since then, it has become a widespread and highly publicized topic of discussion, across industries and regions. By this time, we would have hoped for more improvement in labor market conditions, but we are not seeing any meaningful change which is disappointing. And frankly, we don't see any improvements in the near term, which is also disappointing. This is why we are so focused on quality of earnings and choosing our clients wisely.
As we consider a variety of labor and macroeconomic conditions, it's also important for us to ensure our entire portfolio is best positioned to provide superior service. Since the beginning of the year, we've been making structural changes to our Healthcare division, including the change in senior management.
After careful evaluation with the new leadership team, we've collectively concluded that remapping and realigning the Healthcare business within our other segments primarily B&I will provide the infrastructure necessary to support the efficient growth of this business. Of the roughly $250 million in business in this segment, two-thirds of the services are core to B&I. Of the specific achieved business, we are maintaining a strong network of subject matter experts to provide expertise to support and grow with our clients. We're all excited about this move, and how we will enable us to leverage our scale and strength and capture the long-term potential of this end market.
Anthony will discuss the financial and synergistic implications of this realignment later on the call. Improving our infrastructure is a theme for 2019, particularly on the IT and data front. As you know, we went live with our new HRIS and time and attendance systems in the last six months. In May, we went live with our ERP system in the UK and was slated to go live in the US later this year. As each system gets implemented, we are learning more and more, how we can apply these tools to maximize efficiencies and gain insights into our business. While still early, we are seeing how building the necessary data history over a period of time can provide benefits long- term. I'm reminded of when we first began our transformational journey in late 2015 and what we've accomplished in less than four years.
We have grown annualized revenues to $6.5 billion more than 30%. We've expanded our margins 40% plus from 3.8% to above 5% and we delivered 20% adjusted EPS growth. And the work we've embarked on in 2019 is a continuation of this journey as we build an ABM that is positioned for an even stronger and more prosperous long term. I want to thank our entire organization for making all this happen and for another quarter of excellent execution.
I'd now like to turn the call over to Anthony.
Anthony Scaglione -- Chief Financial Officer
Thanks, Scott and good morning, everyone. Before I expand on Scott's overview of our second quarter performance, I'd like to quickly review the impact of ASC 606 and 853 on our reported results.
In summary, the detailed changes that most impacted us in the quarter were lower revenues associated with service concession arrangement of approximately $12 million reflected predominantly in our Aviation segment. Lower sales commissions, which are now deferred and recognized over the expected customer relationship period primarily impacted Technical Solutions by approximately $3.5 million and the deferral of profit on uninstalled materials associated with our Technical Solutions projects was approximately negative $1.4 million.
As you all know, these two accounting adoptions are not the only change we are managing this year. In addition to the launch of our cloud-based human capital management and time and attendance systems in Q1, we are now in the deployment phase of our ERP implementation. I too am excited that we launched the first phase of our ERP rollout in the UK last month.
The podded approach and phasing will benefit us as we continue with our deployment strategy. I know all of our team members are looking forward to having a unified system where we can finally combine our legacy GCA and our legacy ABM financial environment. With each quarter, these new systems will help us evolve our processes such as our monthly close. Changed management is never easy and I commend all of our teams who are working through our complex project plan to implement our new system, while continuing to manage our day-to-day operations.
As we go live, we'll also be masking (ph) the data history necessary to truly impact our decision-making in the future and that is an exciting prospect for all of us, as this has been a challenging component of our legacy systems.
Now turning to our results. Revenues for the quarter were $1.6 billion, a total increase of approximately 1% and 1.7% organically versus last year, driven by our Technical Solutions and Aviation segment. On a GAAP basis, our income from continuing operations was $29.9 million or $0.45 per diluted share compared to $25.4 million or $0.38 last year. On an adjusted basis, income from continuing operations for the quarter increased to $31.5 million or $0.47 per diluted share, compared to $31.2 million or $0.47 last year. ASC 606 positively impacted these results by approximately $0.03 on both the GAAP and adjusted basis.
These results were driven by a combination of higher margin revenue contributions from our Technical Solutions segment, as well as higher margin mix from our Business & Industry and Technology & Manufacturing group. During the quarter, we generated adjusted EBITDA of approximately $84.7 million at a margin rate of 5.3%.
Now turning to our segments. As a reminder, beginning this year, we began breaking out total interest segment revenue which reflects services provided between our Industry group. A historical comparison can be found in slide 24 of today's presentation, which we also provided last quarter. Our B&I segment delivered $753 million of revenue and operating profit of $48 million for a margin rate of 6.3%. We continue to see success on many fronts, including ongoing expansions at some of our large national account.
B&I has also been a great example of how this discipline we have build over the year, are beginning to yield favorable margin results. Adhering to stricter pricing standards, managing labor more accurately, and pursuing escalations aggressively in the base of the current labor market has to do with the better mix of business.
Additionally, on a year-over-year basis, this segment also overcame approximately $2 million of beneficial one-time item, that occurred during the second quarter of 2018. FTY rate also helped the quarter, but we anticipate the benefits to reduce in the second half as taxable wage limits are reached.
Aviation revenues were $250 million. This reflected roughly $12 million year-over-year reduction related to ASC 853, as a result of the accounting for public sector parking leases. These amounts were previously reported as rent expenses, but are now classified of contra revenue. As Scott also detailed, this segment continues to overcome the loss of certain contracts from last year. Operating profit for the quarter was approximately $5 million.
Our team continues to leverage our density while pursuing a two-tiered approach of diversifying our service offerings like catering logistics and fueling, and building upon our subject matter expertise in janitorial at additional airports, both with low cost and regional carriers. As we look at the longer term fundamentals of this industry, we believe infrastructure improvements at airports throughout the US as well as strong travel trends will continue to play into our strength and lead to continued demand for our services over the long term.
Technology & Manufacturing reported revenues of $224 million, with operating profit of $19 million and operating margins of 8.5%. Like the B&I segment, T&M been balancing growth this year with a focus on pricing, when considering retention.
We are expanding with more profitable clients in the high tech sector and we have seen some initial interest for higher technical services pull-through which is a good trend.
Revenue in Education was $206 million with operating profit of $10.4 million. These results continue to reflect last year's buying season as we were optimizing our newly scalable Education group, as a result of the acquisition and integration of GCA.
Looking forward, we are pleased to be in the midst of the new buying season, so we can finally anniversary last year's lingering effect on our 2019 results and position Education well for fiscal 2020. Education should also be a primary beneficiary of the system convergence as the Education portfolio is currently operating on our legacy platform. Transacting and processing team members on two separate systems make them more challenging to manage turnover especially in Education, given the higher proportion of non-union contracts.
Turning to Technical Solutions. Technical Solutions reported revenues of $128 million up almost 18% versus last year with operating profit of $9.5 million at a margin rate of 7.5%. The sales pipeline and project backlog in this business only continues to grow and we cannot be more excited by what the team has delivered.
Our strategy of pursuing mega project those defined as over $25 million is beginning to bear fruit and we closed two in the first six months of the year. While we are excited about the unprecedented demand we are seeing in the business we want to remind everyone that this is project based growth and does not necessarily signal a new long-term outlook at current levels.
Historically, this business has grown in the high single digits to low teens range and we continue to believe that that is a sustainable expectation for the segment. On the operating profit side Technical Solutions business is the other segment that is most heavily impacted by this year's new accounting rule.
As I stated earlier, the impact of ASC 606 on the current quarter was approximately $2.3 million. On a year-over-year basis last year also saw $2 million in 179 (ph) tax credit, which did not repeat this quarter.
Finally, moving to Healthcare. Revenues were $66 million for the quarter with an operating profit of $2.6 million. The longer-term opportunities for this business have been prudent in growing our presence in the non-acute space as well as more hospital systems. As Scott introduced earlier to fully leverage all that ABM has to offer, and to align a sales strategy that could take advantage of our reach, we have decided to realign our healthcare operations into other segments. This realignment will occur in the third and fourth quarters of this year. We expect to incur approximately $1 million of additional cost and anticipate once fully integrated to generate between $3 million to $4 million in run rate savings by the end of this fiscal year.
Turning to cash and liquidity. Cash flow from operations is more than $90 million during the quarter. We have recaptured some of the DSO slippage we saw in Q1 coming out of an exceptional fiscal 2018 year-end collection. We continue to proactively manage our DSO, and outside of any one-time events, including timing of working capital needs for large new job start we continue to expect to replicate last year's cash flow performance. We ended the quarter with total debt including standby letters of credit of $1.1 billion and a bank adjusted leverage ratio of approximately 3.3 times.
During the quarter, we paid our 212 consecutive quarterly cash dividend for a total distribution of approximately $12 million. Now for a review of our updated guidance outlook, which does not include any impact from the new accounting pronouncement, which could be zero to positive $0.05 for the year.
Today, we are narrowing our GAAP and non-GAAP guidance reflects our year-to-date performance. We now expect GAAP income from continuing operations to be in the range of $1.70 to $1.80 and $1.95 to $2.05 on an adjusted basis. This represents a $0.05 increase to the bottom end of each range.
While our first half performance increases our confidence regarding fiscal 2019, we want to remain prudent given the revenue flow through as we continue to manage retention and our labor carefully. We must also overcome the year-to-date underperformance in aviation, as well as the healthcare segment, which is obviously a much smaller business.
Additionally, corporate expenses have also come in below our initial expectations for the first half, due to the reversals of stock based compensation, related to our long-term incentive plan as well as the timing related to the deployment of our IT projects. We anticipate some of the IT benefits to reverse as we continue deployment in the second half of the year.
We are also narrowing our interest expense expectations for the year. During the first half of this year, interest expense was $27 million, a year-over-year improvement of approximately $2 million. This was driven by continued low short-term rates. In addition, we continue to benefit from the strategy we executed during Q2 of fiscal 2018, when we terminated our existing swap and relayered the swap. As a result of these benefits and in conjunction with continued working capital management, we are revising our full year interest expense outlook to $51 million to $53 million.
Operator, we are now ready for questions.
Questions and Answers:
Operator
Thank you. (Operator Instructions) Our first question is from Sean Eastman with KeyBanc Capital Markets. Please proceed.
Sean Eastman -- KeyBanc Capital Markets -- Analyst
Hi, team. Thanks for taking my questions. For me, first, it's great to see the strong new sales bookings in the first half. It would be great to get a better idea of the margin profile embedded in those wins, relative to historical norms and whether there is any concentration from an end market perspective, just to get a sense for where you guys are really having some success there?
Scott Salmirs -- President and Chief Executive Officer
Yeah. So, for us -- I don't know that there is specific analytics, but I will tell you, we have been so much more discerning on the kinds of business, we're taking on and looking at that margin profile. And I think we said it before, we look at margin in two ways. One, what's the margin expectation going in and what's the trajectory potential. Right. So, this difference between taken on a cost plus account versus the account where you have a kind of fixed price then the ability to accelerate through efficiency and some of the deployments that we're making on the technology side.
So, for us, we think that we're starting to see good traction on margin right at the outset with our plans. And for us the focus, if there was one area to highlight from a growth standpoint, the margin standpoint would be our ATS (ph) business. Everything around energy and sustainability, right now, it's just been particularly half for us. So that's been -- that's been the area of focus that I would point out.
Sean Eastman -- KeyBanc Capital Markets -- Analyst
Okay. And then for TS (ph), clearly very active, but you guys seem to be sort of cautioning that this 2Q trajectory is not really kind of a sustainable rate. But -- maybe just to get a better sense -- it would be great to get a bit of a better sense on how you characterize visibility there, maybe just how far the backlog gets you? Maybe the visibility on how that backlog is going to be translating to revenues in the next couple of quarters?
Anthony Scaglione -- Chief Financial Officer
Sure, Sean. And I think that the comment in context, so we see great -- the pipeline is the strongest it's ever been. Our backlog is at a record and our churn, which is the conversion of that backlog into revenue continue to hover around the 20%, which is the historical low lighter than the historical -- right around that historical average. So we see great prospects over the next 6 to 12 months. My comment was really intended to provide some guidance around the longer-term, 18%, a record phenomenal growth. We expected to be in the mid-digit-- high-single-digit, low-double-digit teens range. So, don't take the comment, at a context we see great prospects over the next 6 to 12 months based on the backlog, and our ability to churn that backlog.
Scott Salmirs -- President and Chief Executive Officer
Yeah. And the other comment I would say too is, one of the things we're seeing -- we're seeing larger scale projects too, which is really encouraging. So if you kind of look at -- if you look two years ago at our average project versus today, you're just going to see that we're gravitating to bigger more complex projects which we're really excited about as a firm.
Sean Eastman -- KeyBanc Capital Markets -- Analyst
Okay, great. And then last one from me, clearly B&I and T&M margin performance was well above expectations for the quarter and then also well above the full year segment margin targets. And it seems like that's the case, even if you take out some of the one-time benefits in the quarter, but it seems like you guys are stopping short of raising the annual target for those segments. So I'm just wondering about some of the moving parts in there and why we shouldn't be thinking about that is the new norm for margin profile.
Scott Salmirs -- President and Chief Executive Officer
Well we did -- we actually did raise on B&I, our operating margin trajectory for the rest of the year. So we are seeing improvement. And for us, it really comes down to kind of the discipline in these groups about managing labor and just all the things that we've been talking about over the last few years about standard, operating practices and just being taking the best of what we have and applying it across the board. So it's -- it's something that's been really helpful. And don't get me wrong, we are still super cautious about the labor environment right now and you heard in my prepared remarks, we hoped that things will be better by now know.
It's been a year or more since we've seen these labor pressures. And you know you can read it in the papers, right, there's been no real progress on the integration front. Supply continues to shrink and it is disappointing, right. We're a labor business and we'd hoped we'd see just a little bit of moderation to the positive now. And there really is no catalyst at this point to see a turn in that. So that's the disappointing thing for us. But the good news, and you're seeing our results is, if you stay disciplined on how you're managing the business and you put a lot of rigor around the day to day, you could mediate it, which is what we've been doing. But make no mistake, we're a labor company and we are cautious about the labor market.
Sean Eastman -- KeyBanc Capital Markets -- Analyst
It's helpful. Thanks for the time.
Scott Salmirs -- President and Chief Executive Officer
Sure.
Operator
Our next question is from Andrew Wittmann with Baird. Please proceed with your question.
Andrew Wittmann -- Robert W. Baird -- Analyst
Hey, great. Thanks for taking my question. I guess in your commentary you talked about some of the delays and some of the IT spend which is kind of helped in this year's guidance. I guess that means there's a little bit more of an impact probably to next year. And I was just wondering if you guys rollout some of the -- particularly that ERP later this year, what the incremental cost is going to be, maybe on a growth and maybe also considering there probably will be some netting effects? Just any kind of visibility you can help us as we look into 2020 on this -- in fact just some kind of impact.
Anthony Scaglione -- Chief Financial Officer
Sure. Yeah. And, our IT spend was projected to go up and we anticipate it to continue to increase. These are investments that we had planned out as part of transforming both our front end, time and attendance, all the way through our ERP. And over time, all of these are going to have an ROI associated with it as we get more efficient on the front-end, as well as the back end and some of the front-end, which is Scott's earlier point around the labor management is really being enabled by the technology we've put in place and the discipline around that technology.
So from a sequential standpoint, some of this obviously is going to be CapEx spend that becomes amortization. So from a sequential standpoint, year-over-year, you've seen roughly a $6 million increase in IT spend, some of that again is going to be depreciation, the build as well as moving to Software as a Service license agreement which we outlined late last year, our approach. As it relates to 2020, the incremental, we see a roughly another $6 million or $7 million of incremental IT expense, but that's on a gross basis. We have not yet outlined the netting that's going to be part of the efficiencies from the back office. So you have to take into context that's the growth.
Andrew Wittmann -- Robert W. Baird -- Analyst
Okay, that's helpful. And then I guess just my last question here is on the new wins that you announced. So it's good see new win being part of the equation here and it sounds like the sales efforts are really working. Those have historically been very tilted and I guess you guys kind of alluded to the fact that those are tilted toward technical solutions. But Scott, as you look at the annuity-type business, that's in those new wins and compared to the growth rates here in the quarter, I mean, what do you see in terms of like a net new or kind of, I don't know how you want to be -- I guess it implicates on -- implications on organic growth, but what's the view on organic growth seeing that this quarter was a little bit more subdued. And the wins look good, but I don't know how much of the annuity, can you just talk about that dynamic here as the rest of the year, what you're seeing -- for the rest of year playing out?
Scott Salmirs -- President and Chief Executive Officer
Sure. And I'm not sure you're going to see much of a difference than where we are right now, Andy. And I do want to go back to the scene, we've been talking about which is organic growth as a metric kind of -- I think will lead to a false kind of evaluation of where we're going. I would just really encourage everyone to look at the two pieces of organic growth, which is new sales and retention and clearly the numbers speak for themselves on new sales like -- I can tell you being very transparent, if you told me three years ago that we were going to sell $590 million in new business in a six month period. That we -- I know how I would answer that, right.
So what we're doing here, and kind of the investments we're making is really paying off and absolutely more tilted to Technical Solutions, which, by and large is a good thing, right. It's our highest margin business, so we're excited about it. But I think it's really about retention and we're trending a little lower than historical again which, we've talked about in the past as well. And I'm not sure that's going to change over the next 6 or 12 months, because we really want to keep the discipline of not taking and renewing business that's so far from where we are trying to take this firm, right. So I wouldn't suspect there's going to be much of a change, but I'm biased. But I'd like to think that that is healthy versus unhealthy. So we're going to keep to that. We're going to keep to the rigor around our pricing council and how we're going.
I think for us it's that piece of keeping the new sales machine going and getting the bookings going and just continuing to stay disciplined on the retention front. And I will point out, Andy and this is an important thing, we aren't looking this as I kind of spreading the concept like peanut butter, right. There are strategic accounts that we have big, large enterprise strategic accounts where we will moderate on margins, if we have to retain that. It's more about the less strategic accounts where we're making those tougher decisions. And it doesn't feel good for anybody, nobody likes losing business. But, we are changing the profile of how we look at things and we want to feel good about what we're doing and it doesn't feel great when you do any work for free.
Anthony Scaglione -- Chief Financial Officer
And Andy, the only thing I would add that is, if you look at B&I, very disciplined around calling the lower margin business and where they're growing in the book margin business that they're bringing on. On average, it's better margin business than what we've historically seen. So to Scott's point, it's the discipline and the maturity that we've come along the way over the last couple of years, that's really starting to bear us some fruit.
Operator
Our next question is from Marc Riddick with Sidoti & Company. Please proceed.
Marc Riddick -- Sidoti & Company -- Analyst
Hi, good morning.
Scott Salmirs -- President and Chief Executive Officer
Good morning.
Marc Riddick -- Sidoti & Company -- Analyst
First of all, I appreciate the pricing discipline comments. So thank you for that. One of the things that I did want to touch on switching gears to business to go into the debt reduction, you mentioned coming down to about 3.3 times. I'm wondering if you had a sort of a near-term target there and what -- and what that might do as far as your current acquisition appetite.
Anthony Scaglione -- Chief Financial Officer
Sure. 2019, we laid out a strategy that internal investments and IT, M&A, we're going to take at the -- and continue to be focused on our working capital management to drive down our leverage. And our plan is to drive that leverage down to somewhere under three times by 2020 -- early 2020. And that will give us an opportunity to really look at opportunities in the marketplace, either organic opportunities or inorganic opportunities. And we continue to be focused on managing the DSOs to get back to the full year targets we have initially.
Marc Riddick -- Sidoti & Company -- Analyst
Okay, great. And is there sort of a general view or maybe update that you can give as to what the acquisition pipeline might look like or at least the general view as to maybe what you're seeing out there as far as attractiveness and valuation, things like that. Thank you.
Scott Salmirs -- President and Chief Executive Officer
Yeah. So we stay pretty active in looking at opportunities and we feel like we're in the narrative of everything that's in the market and the also being more strategic. There are people out there that have fields out for us knowing how we're thinking about it. But going back to Anthony's point, right now, this year 2019 is about paying down debt and getting to the point where we will have that proverbial dry powder in 2020. So we think the pipeline is good. We think that there's going to be some terrific opportunities for us in 2020, when we get to the place where we're ready to do acquisitions again. So it is quite encouraging. There are opportunities in the market.
Anthony Scaglione -- Chief Financial Officer
And the only thing Mark I would add to that is, your question on the valuations. Valuations I think are still fairly high. And I think that's really a function around the resiliency of our underlying business. When you look at our business and you compare what's the opportunity for us -- for the market that we are in, it's really a resilient business. So as you start to look at the potential for a slowdown in the economy, businesses like ours that generate the free cash flow conversion that remain sticky, that are driving a lot of attention and a lot of interest both on private equity as well as other investors, that has created a little bit of a dynamic around pricing from a valuation standpoint. But we're going to remain disciplined when the time is right for us to look at opportunities.
Marc Riddick -- Sidoti & Company -- Analyst
Okay, great. Thanks for taking my question.
Scott Salmirs -- President and Chief Executive Officer
Sure.
Operator
We have time for one more question, and that will be Tate Sullivan from Maxim Group. Please proceed.
Tate Sullivan -- Maxim Group -- Analyst
Hey, thanks. Couple of quick questions. (technical difficulty) review, is this the first year-over-year comparable metric you've released for new booking since the November '17 (ph) GCA acquisition.
Anthony Scaglione -- Chief Financial Officer
No, we started with our bookings, the last year, Q2 of last year and then we are updating it on an annual basis at the end of the year. So you can expect mid year update, both at the Q2 and year-end as far as where we stand as well as the outlook for the upcoming year and obviously, we'll continue with that trend.
Tate Sullivan -- Maxim Group -- Analyst
Okay. But this mid-year update, the year-over-year growth was the highest in your history, is that what you mentioned earlier?
Scott Salmirs -- President and Chief Executive Officer
Yeah. I think -- that's right. And last year it was the highest in our history. We -- and I will tell you candidly well like now, this is going to be a tough comp, when we do this again in 2019. So to be $130 million more than our record of last year, it's just astronomical. So really pleased about that.
Tate Sullivan -- Maxim Group -- Analyst
Thank you. And real quickly on the healthcare comments is, will you -- will all of healthcare go into B&I or did you say earlier, Anthony that will be mixed into different segments and how will that work potentially?
Anthony Scaglione -- Chief Financial Officer
It will be predominantly into B&I. But we're also looking at the portfolio, specifically on the clinical engineering side as well as the hospital systems that are attached to universities and there could be -- split into both ATS (ph) and Education. We just haven't finalized the numbers. But I anticipate the majority of predominantly will be in B&I, but Education and our Technical Solutions business will also receive a portion.
Tate Sullivan -- Maxim Group -- Analyst
Okay. And just a follow-up on that, I think you mentioned maybe a $1 million cost associated with that reorganization effort. And was that in your previous guidance captured between the GAAP EPS and operating EPS guidance?
Anthony Scaglione -- Chief Financial Officer
It was, yes.
Tate Sullivan -- Maxim Group -- Analyst
And it was $1 million. Okay. And then real quick, just last Aviation margins, I think you touched on a little bit earlier, first half of the fiscal year, they're around 2% versus the 3% guidance, what can help that business in the second half? Please.
Scott Salmirs -- President and Chief Executive Officer
So from a revenue standpoint, I think for us, we are seeing the biggest pipeline we've had in years in terms of Aviation. So that's really encouraging. And what's interesting is, it's not only the US, but it's the UK as well. So we're seeing great growth. We're actually seeing -- been seeing double-digit growth on the Aviation side in the UK, which is great. As I mentioned in my prepared remarks, Delta made the decision to insource some of our contracts. And this could be a cyclical business and we've talked about this for years now, there are big chunky contracts and we see it moderate.
So I think we're going to have some headwinds on the growth side going into the rest of this year, just as a result of the annualization of the -- some of the Delta losses, but the team has been working so hard over the last 12 months about diversifying our portfolio. So it's not just dealing with the big three right United, Delta and American, we're doing business now with JetBlue, Alaska Airlines, Scandinavian Airlines, like -- so we're going across the board and we're also -- we're also differentiating our offerings, getting into catering and fueling. So team is doing a good job about making sure that no one client is overweighted, but historically Delta has been one of the larger pieces of our portfolio. And, don't get me wrong, it's still under 10% of what we do, but I think we're going to be very discerning about diversifying.
Tate Sullivan -- Maxim Group -- Analyst
Okay. And then, thank you for all the detail earlier on Technical Solutions too, and that's it for me. Thank you.
Operator
Thank you. This concludes our question-and-answer session. I would like to turn it back over to management for closing remarks.
Scott Salmirs -- President and Chief Executive Officer
Well, thanks, everybody. And again, I just want to reiterate how encouraged we are about where we are from an execution standpoint and this really tough labor market. You think about what we're doing here. And again, you think about four years into this and the growth we've had in our margin profile, and the growth that we've had on margin profile in context to the fact that we are in the worst labor market in modern history. I'm just so proud of the team. And IT is going to be the big piece for us over the next couple of years, right. We're going to get these systems implemented this year and you're going to see an ABM that when you look at a year ago versus what's going to happen in the next year, we're going to have a new HR system, a new time and attendance system, a new ERP system, a new purchase order system, a new T&E system, like we are modernizing our IT platform, we're making investments and they'll give us some headwinds as Anthony talked about.
But we are planning for the long term here and just think about the -- toward the end of 2020, the year 2020 having a new operating model, focused on industry groups, having a back office, that's modernized with shared service center and national procurement and then finishing off the last leg of 2020 vision with a modernized IT platform that's going to give us data analytics to have insights into our business and to leverage the standard operating practices we're doing. We just think it's spectacular.
And I didn't want to end this call without saying how encouraged I am about where we are and how excited I am about all the changes that are happening in the future, because they are foundational to our success long term, and as you can tell I am pretty excited. So thanks for spending the time on the call and we look forward to the next quarterly update. Have a great summer everybody.
Operator
Thank you. This concludes today's conference. You may disconnect your lines at this time and thank you for your participation.
Duration: 43 minutes
Call participants:
Susie A. Kim -- Investor Relations and Treasury
Scott Salmirs -- President and Chief Executive Officer
Anthony Scaglione -- Chief Financial Officer
Sean Eastman -- KeyBanc Capital Markets -- Analyst
Andrew Wittmann -- Robert W. Baird -- Analyst
Marc Riddick -- Sidoti & Company -- Analyst
Tate Sullivan -- Maxim Group -- Analyst
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | As Scott introduced earlier to fully leverage all that ABM has to offer, and to align a sales strategy that could take advantage of our reach, we have decided to realign our healthcare operations into other segments. ABM Industries Inc (NYSE: ABM) Q2 2019 Earnings Call Jun 6, 2019, 8:30 a.m. Welcome to ABM Industries Second Quarter 2019 Earnings Call. | Duration: 43 minutes Call participants: Susie A. Kim -- Investor Relations and Treasury Scott Salmirs -- President and Chief Executive Officer Anthony Scaglione -- Chief Financial Officer Sean Eastman -- KeyBanc Capital Markets -- Analyst Andrew Wittmann -- Robert W. Baird -- Analyst Marc Riddick -- Sidoti & Company -- Analyst Tate Sullivan -- Maxim Group -- Analyst More ABM analysis All earnings call transcripts 10 stocks we like better than ABM Industries When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. ABM Industries Inc (NYSE: ABM) Q2 2019 Earnings Call Jun 6, 2019, 8:30 a.m. Welcome to ABM Industries Second Quarter 2019 Earnings Call. | We're going to get these systems implemented this year and you're going to see an ABM that when you look at a year ago versus what's going to happen in the next year, we're going to have a new HR system, a new time and attendance system, a new ERP system, a new purchase order system, a new T&E system, like we are modernizing our IT platform, we're making investments and they'll give us some headwinds as Anthony talked about. Duration: 43 minutes Call participants: Susie A. Kim -- Investor Relations and Treasury Scott Salmirs -- President and Chief Executive Officer Anthony Scaglione -- Chief Financial Officer Sean Eastman -- KeyBanc Capital Markets -- Analyst Andrew Wittmann -- Robert W. Baird -- Analyst Marc Riddick -- Sidoti & Company -- Analyst Tate Sullivan -- Maxim Group -- Analyst More ABM analysis All earnings call transcripts 10 stocks we like better than ABM Industries When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. ABM Industries Inc (NYSE: ABM) Q2 2019 Earnings Call Jun 6, 2019, 8:30 a.m. | Duration: 43 minutes Call participants: Susie A. Kim -- Investor Relations and Treasury Scott Salmirs -- President and Chief Executive Officer Anthony Scaglione -- Chief Financial Officer Sean Eastman -- KeyBanc Capital Markets -- Analyst Andrew Wittmann -- Robert W. Baird -- Analyst Marc Riddick -- Sidoti & Company -- Analyst Tate Sullivan -- Maxim Group -- Analyst More ABM analysis All earnings call transcripts 10 stocks we like better than ABM Industries When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. ABM Industries Inc (NYSE: ABM) Q2 2019 Earnings Call Jun 6, 2019, 8:30 a.m. Welcome to ABM Industries Second Quarter 2019 Earnings Call. |
29386.0 | 2019-04-26 00:00:00 UTC | Peek Under The Hood: EVX Has 10% Upside | ABM | https://www.nasdaq.com/articles/peek-under-hood-evx-has-10-upside-2019-04-26 | nan | nan | Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the Environmental Services ETF (Symbol: EVX), we found that the implied analyst target price for the ETF based upon its underlying holdings is $108.50 per unit.
With EVX trading at a recent price near $99.03 per unit, that means that analysts see 9.56% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of EVX's underlying holdings with notable upside to their analyst target prices are Tetra Tech Inc (Symbol: TTEK), ABM Industries, Inc. (Symbol: ABM), and Evoqua Water Technologies Corp (Symbol: AQUA). Although TTEK has traded at a recent price of $63.78/share, the average analyst target is 13.08% higher at $72.12/share. Similarly, ABM has 11.98% upside from the recent share price of $37.06 if the average analyst target price of $41.50/share is reached, and analysts on average are expecting AQUA to reach a target price of $14.44/share, which is 10.68% above the recent price of $13.05. Below is a twelve month price history chart comparing the stock performance of TTEK, ABM, and AQUA:
Combined, TTEK, ABM, and AQUA represent 11.54% of the Environmental Services ETF. Below is a summary table of the current analyst target prices discussed above:
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
10 ETFs With Most Upside To Analyst Targets »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Below is a twelve month price history chart comparing the stock performance of TTEK, ABM, and AQUA: Combined, TTEK, ABM, and AQUA represent 11.54% of the Environmental Services ETF. Three of EVX's underlying holdings with notable upside to their analyst target prices are Tetra Tech Inc (Symbol: TTEK), ABM Industries, Inc. (Symbol: ABM), and Evoqua Water Technologies Corp (Symbol: AQUA). Similarly, ABM has 11.98% upside from the recent share price of $37.06 if the average analyst target price of $41.50/share is reached, and analysts on average are expecting AQUA to reach a target price of $14.44/share, which is 10.68% above the recent price of $13.05. | Three of EVX's underlying holdings with notable upside to their analyst target prices are Tetra Tech Inc (Symbol: TTEK), ABM Industries, Inc. (Symbol: ABM), and Evoqua Water Technologies Corp (Symbol: AQUA). Similarly, ABM has 11.98% upside from the recent share price of $37.06 if the average analyst target price of $41.50/share is reached, and analysts on average are expecting AQUA to reach a target price of $14.44/share, which is 10.68% above the recent price of $13.05. Below is a twelve month price history chart comparing the stock performance of TTEK, ABM, and AQUA: Combined, TTEK, ABM, and AQUA represent 11.54% of the Environmental Services ETF. | Similarly, ABM has 11.98% upside from the recent share price of $37.06 if the average analyst target price of $41.50/share is reached, and analysts on average are expecting AQUA to reach a target price of $14.44/share, which is 10.68% above the recent price of $13.05. Three of EVX's underlying holdings with notable upside to their analyst target prices are Tetra Tech Inc (Symbol: TTEK), ABM Industries, Inc. (Symbol: ABM), and Evoqua Water Technologies Corp (Symbol: AQUA). Below is a twelve month price history chart comparing the stock performance of TTEK, ABM, and AQUA: Combined, TTEK, ABM, and AQUA represent 11.54% of the Environmental Services ETF. | Similarly, ABM has 11.98% upside from the recent share price of $37.06 if the average analyst target price of $41.50/share is reached, and analysts on average are expecting AQUA to reach a target price of $14.44/share, which is 10.68% above the recent price of $13.05. Three of EVX's underlying holdings with notable upside to their analyst target prices are Tetra Tech Inc (Symbol: TTEK), ABM Industries, Inc. (Symbol: ABM), and Evoqua Water Technologies Corp (Symbol: AQUA). Below is a twelve month price history chart comparing the stock performance of TTEK, ABM, and AQUA: Combined, TTEK, ABM, and AQUA represent 11.54% of the Environmental Services ETF. |
29387.0 | 2019-04-01 00:00:00 UTC | ABM Ex-Dividend Reminder - 4/3/19 | ABM | https://www.nasdaq.com/articles/abm-ex-dividend-reminder-4319-2019-04-01 | nan | nan | Looking at the universe of stocks we cover at Dividend Channel, on 4/3/19, ABM Industries, Inc. (Symbol: ABM) will trade ex-dividend, for its quarterly dividend of $0.18, payable on 5/6/19. As a percentage of ABM's recent stock price of $36.66, this dividend works out to approximately 0.49%.
In general, dividends are not always predictable; but looking at the history above can help in judging whether the most recent dividend from ABM is likely to continue, and whether the current estimated yield of 1.96% on annualized basis is a reasonable expectation of annual yield going forward. The chart below shows the one year performance of ABM shares, versus its 200 day moving average:
Looking at the chart above, ABM's low point in its 52 week range is $25.64 per share, with $37.34 as the 52 week high point — that compares with a last trade of $36.63.
In Monday trading, ABM Industries, Inc. shares are currently up about 0.8% on the day.
Click here to learn which 25 S.A.F.E. dividend stocks should be on your radar screen »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | As a percentage of ABM's recent stock price of $36.66, this dividend works out to approximately 0.49%. In general, dividends are not always predictable; but looking at the history above can help in judging whether the most recent dividend from ABM is likely to continue, and whether the current estimated yield of 1.96% on annualized basis is a reasonable expectation of annual yield going forward. The chart below shows the one year performance of ABM shares, versus its 200 day moving average: Looking at the chart above, ABM's low point in its 52 week range is $25.64 per share, with $37.34 as the 52 week high point — that compares with a last trade of $36.63. | Looking at the universe of stocks we cover at Dividend Channel, on 4/3/19, ABM Industries, Inc. (Symbol: ABM) will trade ex-dividend, for its quarterly dividend of $0.18, payable on 5/6/19. The chart below shows the one year performance of ABM shares, versus its 200 day moving average: Looking at the chart above, ABM's low point in its 52 week range is $25.64 per share, with $37.34 as the 52 week high point — that compares with a last trade of $36.63. In Monday trading, ABM Industries, Inc. shares are currently up about 0.8% on the day. | Looking at the universe of stocks we cover at Dividend Channel, on 4/3/19, ABM Industries, Inc. (Symbol: ABM) will trade ex-dividend, for its quarterly dividend of $0.18, payable on 5/6/19. In general, dividends are not always predictable; but looking at the history above can help in judging whether the most recent dividend from ABM is likely to continue, and whether the current estimated yield of 1.96% on annualized basis is a reasonable expectation of annual yield going forward. The chart below shows the one year performance of ABM shares, versus its 200 day moving average: Looking at the chart above, ABM's low point in its 52 week range is $25.64 per share, with $37.34 as the 52 week high point — that compares with a last trade of $36.63. | As a percentage of ABM's recent stock price of $36.66, this dividend works out to approximately 0.49%. In general, dividends are not always predictable; but looking at the history above can help in judging whether the most recent dividend from ABM is likely to continue, and whether the current estimated yield of 1.96% on annualized basis is a reasonable expectation of annual yield going forward. In Monday trading, ABM Industries, Inc. shares are currently up about 0.8% on the day. |
29388.0 | 2019-03-21 00:00:00 UTC | ABM Industries Extends Janitorial Services Alliance With AEG | ABM | https://www.nasdaq.com/articles/abm-industries-extends-janitorial-services-alliance-with-aeg-2019-03-21 | nan | nan | ABM Industries IncorporatedABM announced renewal of its partnership with AEG - one of the largest sports and live entertainment companies across the globe.
The partnership extension means that ABM Industries will continue to offer janitorial services at AEG's five venues in California - STAPLES Center, Microsoft Theater, Pechanga Arena San Diego, Dignity Health Sports Park and L.A. LIVE.
Rene Jacobsen, executive vice president and president of Business & Industry at ABM, stated, "In renewing our partnership with AEG, we understand that AEG is entrusting us to service these world-class facilities. It is our responsibility and privilege to help ensure that these venues offer exceptional experiences for all guests and event staff, and we take it very seriously."
From convention centers to concert halls, ABM Industries provides janitorial services to more than 100 sports and entertainment venues. The company's janitorial services include pre, during & post-event cleaning; pressure washing & window cleaning, floor care, waste removal & recycling, changeover crews, food service sanitation and suite & seat detailing.
Shares of ABM Industries have gained 4.2% in the past six months against 8% decline of the industry it belongs to.
Our Take
The partnership is likely to help ABM Industries boost its Business & Industry segment as it encompasses the company's janitorial service offerings to sports and entertainment venues.
Accounting for 48% of ABM Industries' revenues in first-quarter fiscal 2019, the segment emerged as the largest contributor. Its revenues improved 2.4% year over year.
Zacks Rank and Stocks to Consider
Currently, ABM Industries carries a Zacks Rank #4 (Sell).
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
A few better-ranked stocks in the broader Zacks Business Services sector are Interpublic IPG , Omnicom OMC and Paychex PAYX , each carrying a Zacks Rank #2 (Buy). Long-term expected EPS (three to five years) growth rate for Interpublic, Omnicom and Paychex is 2.7%, 4.7% and 8.8%, respectively.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | ABM Industries IncorporatedABM announced renewal of its partnership with AEG - one of the largest sports and live entertainment companies across the globe. The partnership extension means that ABM Industries will continue to offer janitorial services at AEG's five venues in California - STAPLES Center, Microsoft Theater, Pechanga Arena San Diego, Dignity Health Sports Park and L.A. LIVE. Rene Jacobsen, executive vice president and president of Business & Industry at ABM, stated, "In renewing our partnership with AEG, we understand that AEG is entrusting us to service these world-class facilities. | Click to get this free report Interpublic Group of Companies, Inc. (The) (IPG): Free Stock Analysis Report Omnicom Group Inc. (OMC): Free Stock Analysis Report ABM Industries Incorporated (ABM): Free Stock Analysis Report Paychex, Inc. (PAYX): Free Stock Analysis Report To read this article on Zacks.com click here. ABM Industries IncorporatedABM announced renewal of its partnership with AEG - one of the largest sports and live entertainment companies across the globe. The partnership extension means that ABM Industries will continue to offer janitorial services at AEG's five venues in California - STAPLES Center, Microsoft Theater, Pechanga Arena San Diego, Dignity Health Sports Park and L.A. LIVE. | Our Take The partnership is likely to help ABM Industries boost its Business & Industry segment as it encompasses the company's janitorial service offerings to sports and entertainment venues. Zacks Rank and Stocks to Consider Currently, ABM Industries carries a Zacks Rank #4 (Sell). Click to get this free report Interpublic Group of Companies, Inc. (The) (IPG): Free Stock Analysis Report Omnicom Group Inc. (OMC): Free Stock Analysis Report ABM Industries Incorporated (ABM): Free Stock Analysis Report Paychex, Inc. (PAYX): Free Stock Analysis Report To read this article on Zacks.com click here. | Our Take The partnership is likely to help ABM Industries boost its Business & Industry segment as it encompasses the company's janitorial service offerings to sports and entertainment venues. ABM Industries IncorporatedABM announced renewal of its partnership with AEG - one of the largest sports and live entertainment companies across the globe. The partnership extension means that ABM Industries will continue to offer janitorial services at AEG's five venues in California - STAPLES Center, Microsoft Theater, Pechanga Arena San Diego, Dignity Health Sports Park and L.A. LIVE. |
29389.0 | 2019-03-19 00:00:00 UTC | ROL or ABM: Which is a Better Building Maintenance Stock? | ABM | https://www.nasdaq.com/articles/rol-or-abm%3A-which-is-a-better-building-maintenance-stock-2019-03-19 | nan | nan | Demand for building maintenance services is currently in good shape despite a slowdown in the residential construction market, driven by rise in disposable and per capita income, lower unemployment rate and improving consumer confidence. In terms of non-residential, strength in the economy has been driving demand for offices and commercial buildings, a trend that will likely continue in the near to mid-term.
Ebbing trade war and interest rate fears should be a tailwind for the industry. Strict EHS policies in North America and Europe should increase implementation of building maintenance services. Rapid industrialization and urbanization will continue to drive demand for these services.
Notably, The Zacks Building Products - Maintenance Service industry has a Zacks Industry Rank in the top 42% (106 out of the 250 plus groups). This indicates a relatively favorable earnings outlook for the industry.
Given this backdrop, it is not a bad idea to undertake a comparative analysis of two building maintenance services stocks - Rollins, Inc. ROL and ABM Industries Incorporated ABM . Both the stocks are part of the broader Business Services sector (one of the 16 Zacks sectors). While Rollins has a market capitalization of $13.3 billion, ABM Industries' market cap is $2.3 billion.
As both the stocks carry a Zacks Rank #3 (Hold), we are using certain other parameters to give investors a better insight. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Price Performance
Rollins clearly scores over ABM Industries in terms of price performance. Shares of Rollins have gained 19.5% in a year's time, outperforming the 0.6% rise of ABM Industries and 9.4% rise of the industry.
Earnings Expectations
Earnings growth along with stock price gains is often an indication of a company's strong prospects.
Rollin's earnings for the current year are projected to grow 8.5% while that of ABM Industries are expected to increase 3.2%. For the next year, Rollin's earnings are expected to grow 9.1% while that of ABM Industries are projected to increase 17.4%. Thus, Rollins has an edge over ABM Industries in terms of current year projected earnings growth. ABM Industries clinches the round in terms of next year earnings growth projections.
Earnings Surprise History
The earnings surprise history of a stock helps investors have an idea of the stock's performance in the previous quarters.
ABM Industries has an impressive earning surprise history. The company's earnings surpassed the Zacks Consensus Estimate in all of the previous four quarters with an average positive beat of 6.6%. Rollins reported a negative four quarter avera ge earnings surprise of 1.5%.
Net Margin
Net profit margin helps investors evaluate a company's business model in terms of pricing policy, cost structure and operating efficiency, and shows how good it is at converting revenues into profits. Hence, a strong net profit margin is preferred by all classes of investors.
Rollins' TTM net margin of 12.7% places it favorably in comparison to the industry's figure of 8.4% and ABM Industries' figure of 2%.
Valuation
Comparing the two stocks with the industry on the basis of trailing 12-month price-to-earnings (P/E), which is a commonly used multiple for the industry, we see that the Rollins trades at 57.46X, higher than the ABM Industries' 17.96X. The tally is also ahead of the industry's 37.27X.
So, ABM Industries looks cheaper than Rollins.
Bottom Line
Our comparative analysis shows that while Rollins scores over ABM Industries in terms of year over year price performance, projected earnings growth for the current year and net margin, ABM Industries has an edge in terms of projected earnings growth for the next year and surprise history. A faster share price rally in the past year has led to a rich valuation for Rollins compared with ABM Industries.
Stocks to Consider
A few better-ranked stocks in the broader Business Services sector include Omnicom OMC and Paychex PAYX , each carrying a Zacks Rank of 2 (Buy).
Long-term expected EPS (three to five years) growth rate for Omnicom and Paychex is 4.7% and 8.8%, respectively.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?
Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | A faster share price rally in the past year has led to a rich valuation for Rollins compared with ABM Industries. Given this backdrop, it is not a bad idea to undertake a comparative analysis of two building maintenance services stocks - Rollins, Inc. ROL and ABM Industries Incorporated ABM . While Rollins has a market capitalization of $13.3 billion, ABM Industries' market cap is $2.3 billion. | Given this backdrop, it is not a bad idea to undertake a comparative analysis of two building maintenance services stocks - Rollins, Inc. ROL and ABM Industries Incorporated ABM . Bottom Line Our comparative analysis shows that while Rollins scores over ABM Industries in terms of year over year price performance, projected earnings growth for the current year and net margin, ABM Industries has an edge in terms of projected earnings growth for the next year and surprise history. Click to get this free report Omnicom Group Inc. (OMC): Free Stock Analysis Report ABM Industries Incorporated (ABM): Free Stock Analysis Report Rollins, Inc. (ROL): Free Stock Analysis Report Paychex, Inc. (PAYX): Free Stock Analysis Report To read this article on Zacks.com click here. | Valuation Comparing the two stocks with the industry on the basis of trailing 12-month price-to-earnings (P/E), which is a commonly used multiple for the industry, we see that the Rollins trades at 57.46X, higher than the ABM Industries' 17.96X. Bottom Line Our comparative analysis shows that while Rollins scores over ABM Industries in terms of year over year price performance, projected earnings growth for the current year and net margin, ABM Industries has an edge in terms of projected earnings growth for the next year and surprise history. Click to get this free report Omnicom Group Inc. (OMC): Free Stock Analysis Report ABM Industries Incorporated (ABM): Free Stock Analysis Report Rollins, Inc. (ROL): Free Stock Analysis Report Paychex, Inc. (PAYX): Free Stock Analysis Report To read this article on Zacks.com click here. | Bottom Line Our comparative analysis shows that while Rollins scores over ABM Industries in terms of year over year price performance, projected earnings growth for the current year and net margin, ABM Industries has an edge in terms of projected earnings growth for the next year and surprise history. Given this backdrop, it is not a bad idea to undertake a comparative analysis of two building maintenance services stocks - Rollins, Inc. ROL and ABM Industries Incorporated ABM . While Rollins has a market capitalization of $13.3 billion, ABM Industries' market cap is $2.3 billion. |
29390.0 | 2019-03-13 00:00:00 UTC | ABM Rides on Vision 2020 and GCA Buyout, Suffers Debt Woes | ABM | https://www.nasdaq.com/articles/abm-rides-on-vision-2020-and-gca-buyout-suffers-debt-woes-2019-03-13 | nan | nan | Shares of ABM Industries IncorporatedABM have gained 28.5% in the past three months, outperforming its industry 's 17.1% rally.
ABM Industries boasts an impressive earnings surprise history, having surpassed estimates in all the trailing four quarters, the average being 6.6%. For the fiscal second quarter, the consensus estimate moved 3.6% north in the past 30 days.
Drivers of the Company
ABM Industries is currently executing 2020 Vision, a comprehensive transformation initiative, aimed at achieving operational improvement and vertical realignment.
As part of this plan, the company's upgrade of its human resources information systems, labor management system and enterprise resource planning system is on track. It is utilizing technology to enhance account planning, labor management, payroll and procurement. ABM Industries is centralizing many of its back-office functions via Enterprise Services Center in Sugar Land. Also, the company has been able to leverage its scale, increase the purchasing power and identify preferred suppliers through consolidating purchasing activities, thereby saving cost in supplies and materials procurement.
Post complete execution, the 2020 Vision will boost long-term profits for ABM Industries on the back of an industry-based go-to-market approach.
ABM Industries Incorporated Revenue (TTM)
ABM Industries Incorporated Revenue (TTM) | ABM Industries Incorporated Quote
Moreover, the buyout of GCA Services Group has strengthened the company's long-term financial and operational capacities, primarily in the Technology & Manufacturing, Business & Industry and Education segments. GCA is now fully embedded in ABM Industries' organic base.
Risks
ABM Industries is a labor company at core with direct labor cost comprising the majority of its expense line. The U.S. labor market has been witnessing low unemployment levels for both skilled and unskilled labor since the beginning of the ongoing year. While the economy consistently creates new jobs despite the low jobless rate, a tight labor market is compelling companies like ABM Industries to pay higher wages for attracting and retaining employees. Labor-related headwind is weighing on the company's operating performance.
The company's balance sheet is highly leveraged. At the end of first-quarter fiscal 2019, long-term debt was $945.8 million while cash and cash equivalents were $30.6 million. Such a cash position implies that ABM Industries needs to generate adequate amount of operating cash flow to service its debt. High indebtedness may restrict the company's future expansion and worsen its risk profile.
Zacks Rank & Stocks to Consider
Currently, ABM Industries has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Some better-ranked stocks in the broader Zacks Business Services sector are Omnicom OMC , Paychex PAYX and Automatic Data Processing ADP , each carrying a Zacks Rank #2 (Buy). Long-term expected EPS (three to five years) growth rate for Omnicom, Paychex and Automatic Data Processing is 6.9%, 8.8% and 12.8%, respectively.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, wouldn't you like to know about our 10 finest buy-and-holds for the year?
From more than 4,000 companies covered by the Zacks Rank, these 10 were picked by a process that consistently beats the market. Even during 2018 while the market dropped -5.2%, our Top 10s were up well into double-digits. And during bullish 2012 - 2017, they soared far above the market's +126.3%, reaching +181.9%.
This year, the portfolio features a player that thrives on volatility, an AI comer, and a dynamic tech company that helps doctors deliver better patient outcomes at lower costs.
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Omnicom Group Inc. (OMC): Free Stock Analysis Report
ABM Industries Incorporated (ABM): Free Stock Analysis Report
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Paychex, Inc. (PAYX): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Drivers of the Company ABM Industries is currently executing 2020 Vision, a comprehensive transformation initiative, aimed at achieving operational improvement and vertical realignment. While the economy consistently creates new jobs despite the low jobless rate, a tight labor market is compelling companies like ABM Industries to pay higher wages for attracting and retaining employees. Shares of ABM Industries IncorporatedABM have gained 28.5% in the past three months, outperforming its industry 's 17.1% rally. | ABM Industries Incorporated Revenue (TTM) ABM Industries Incorporated Revenue (TTM) | ABM Industries Incorporated Quote Moreover, the buyout of GCA Services Group has strengthened the company's long-term financial and operational capacities, primarily in the Technology & Manufacturing, Business & Industry and Education segments. Click to get this free report Omnicom Group Inc. (OMC): Free Stock Analysis Report ABM Industries Incorporated (ABM): Free Stock Analysis Report Automatic Data Processing, Inc. (ADP): Free Stock Analysis Report Paychex, Inc. (PAYX): Free Stock Analysis Report To read this article on Zacks.com click here. Shares of ABM Industries IncorporatedABM have gained 28.5% in the past three months, outperforming its industry 's 17.1% rally. | ABM Industries Incorporated Revenue (TTM) ABM Industries Incorporated Revenue (TTM) | ABM Industries Incorporated Quote Moreover, the buyout of GCA Services Group has strengthened the company's long-term financial and operational capacities, primarily in the Technology & Manufacturing, Business & Industry and Education segments. Zacks Rank & Stocks to Consider Currently, ABM Industries has a Zacks Rank #3 (Hold). Click to get this free report Omnicom Group Inc. (OMC): Free Stock Analysis Report ABM Industries Incorporated (ABM): Free Stock Analysis Report Automatic Data Processing, Inc. (ADP): Free Stock Analysis Report Paychex, Inc. (PAYX): Free Stock Analysis Report To read this article on Zacks.com click here. | Shares of ABM Industries IncorporatedABM have gained 28.5% in the past three months, outperforming its industry 's 17.1% rally. ABM Industries boasts an impressive earnings surprise history, having surpassed estimates in all the trailing four quarters, the average being 6.6%. Drivers of the Company ABM Industries is currently executing 2020 Vision, a comprehensive transformation initiative, aimed at achieving operational improvement and vertical realignment. |
29391.0 | 2019-03-11 00:00:00 UTC | 15 Growth Stocks to Buy Under 15x Earnings | ABM | https://www.nasdaq.com/articles/15-growth-stocks-to-buy-under-15x-earnings-2019-03-11 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Finding cheap stocks to buy in this market is a challenge. Broad market indices aren't far from all-time highs. Yet risks abound. The bull market has been going strong for a decade. Trade battles still haven't been resolved. And at some point, the U.S. macroeconomic situation will reverse.
But there are opportunities out there, and some stocks remain attractive. These 15 stocks all potentially fit that bill for one simple reason. All 15 trade at less than 15x earnings, yet those earnings are growing. That means they provide a solid combination of value and growth.
These stocks - like the market as a whole - aren't without risk. In many cases, there are reasons investors are keeping valuations low. But those valuations are low enough that those risks are priced in, while the potential rewards are not.
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With all of that in mind, here are 15 growth stocks with low P/E ratios.
Source: Shutterstock
Broadcom (AVGO)
In a chip sector seeing quite a bit of pressure at the moment, Broadcom (NASDAQ: AVGO ) seems to be holding up just fine. AVGO stock briefly touched an all-time high last month, while most semiconductor stocks trade well off 2018 peaks.
Even with the gains so far, however, Broadcom stock still looks attractive. An 8% pullback makes the stock even cheaper: AVGO now trades at just 11.6x FY19 (ending October) earnings-per-share estimates.
Yet earnings continue to grow. Operating margins are expanding, with FY19 guidance suggesting a 51% adjusted figure - one of the highest in any industry. And analysts are seeing even better growth next year, with earnings rising nearly 15%.
There are risks here. Semiconductor stocks are usually cyclical, which suggests Broadcom earnings could peak in the next couple of years. Few companies have more impressively executed in terms of M&A over the years, but that success may not last forever.
Still, those risks look worth taking. Broadcom's diversified base limits cyclical effects and increases exposure to long-term trends like Internet of Things. With the Qualcomm (NASDAQ: QCOM ) acquisition abandoned, Broadcom likely will stick to smaller deals. This has been one of the best stocks in tech for years now - there's not much reason to suggest that will change.
ABM Industries (ABM)
Facility services provider ABM Industries (NYSE: ABM ) isn't exciting. The company provides outsourced labor and solutions for janitorial services, landscaping, parking and other needs. Margins are relatively thin; growth is steady but not spectacular.
But the same has been true of the returns provided by ABM stock. The Dividend Champion has returned nearly 11% per year over the past quarter century, including dividends . That's true even with the stock 30% off 2017 levels.
The concerns of late have been driven by worries about rising labor costs, and ABM's ability to pass along those costs. The stock dipped 8% after earnings last week. But the selloff seems overdone: fiscal Q1 numbers were fine, and ABM's margins, while still thin, are holding up.
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This is a stock that will take some patience, and not one that is likely to produce eye-popping returns. But ABM trades at less than 15x FY20 EPS estimates, while growth should continue for some time. And the nature of the business provides protection against a cyclical downturn, which actually could help ABM by pushing labor rates (and availability) back down. All told, ABM looks too cheap and likely to start producing 10%+ returns again in the not too distant future.
Source: Shutterstock
Bank of America (BAC) and JPMorgan Chase (JPM)
To be fair, most bank stocks, not just Bank of America (NYSE: BAC ) and JPMorgan Chase (NYSE: JPM ), seem reasonably cheap at the moment. Big bank stocks are generally trading at 10x 2019 earnings estimates, and smaller banks are in the same range.
The obvious concern is that the economic cycle will turn at some point, bringing bank profits down as a result. Optimism toward the sector after the 2016 U.S. presidential election has dissipated, though the sector has done better in 2019.
There still should be more upside ahead. Regulations put in place after the financial crisis have been criticized in some quarters for limiting growth. But - as far as we can tell - they likely also limit risk. In the meantime, earnings continue to grow.
BAC and JPM continue to the best bets in the industry , as I argued in December. The 'smart money' seems to agree . For investors who see the current economic strength continuing, these two stocks should be on the top of their shopping list.
Source: Shutterstock
Photronics (PLAB)
The risk with Photronics (NASDAQ: PLAB ) is that it's cheap, but will always be cheap. The company manufactures photomasks used in semiconductor production. It's a difficult, cyclical and capital-intensive business, which is one reason why PLAB has mostly traded sideways for years now, and usually receives low multiples.
But there's still an intriguing case for PLAB stock at the moment, which is why I personally own the stock. PLAB trades at 16.5x trailing twelve-month EPS, but the multiple drops to 13x backing out net cash. New facilities in China are coming online this year, positioning the company as the leading supplier to a growing domestic semiconductor industry.
10 Top Pot Stocks 2019 Has to Offer
The risks here are obvious, given recent weakness in both semiconductor stocks and Chinese equities. PLAB itself has pulled back after a decent, but not quite spectacular, earnings report last month. But below $10, PLAB is still too cheap. I argued last year that the stock could double, and looking a few years out, that's still a possibility.
Source: Dwight Burdette via WikiMedia Commons
Aaron's (AAN)
To be honest, I'm not entirely sold on Aaron's (NYSE: AAN ). The legacy rent-to-own business has struggled for years now. And there's obvious risk in the company's Progressive Leasing business, which provides financing to customers of retailers like Signet Jewelers (NYSE: SIG ) and Conn's (NASDAQ: CONN ).
But with AAN trading at 14x the midpoint of 2019 EPS guidance, there are few stocks at a similar valuation with as much upside in the bullish scenario. The Aaron's concept is starting to show some signs of life, with same-store revenues guided to be flat to up 2% in 2019. Progressive has a massive opportunity in front of it, and this year should drive over 60% of profit. A clean balance sheet provides room for share buybacks, increasing returns and boosting EPS.
Again, there are risks here. But if Progressive is what the company believes it can be, and Aaron's can start driving organic profit growth, this is a stock that could show huge returns for years to come.
Source: Jerry Landers via Flickr (Modified)
Southwest Airlines (LUV)
Airline stocks like Southwest Airlines (NYSE: LUV ) have struggled in the last couple of years. Southwest stock itself was hit by a couple of factors last month. Grounded planes - possibly due to a labor dispute - will hit first quarter revenue. And Goldman Sachs downgraded the stock, citing higher costs related to its new service to Hawaii.
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But even Goldman admits that from a long-term perspective, LUV looks attractive. The firm is right. Southwest long has been one of the best domestic operators. It performed quite well in 2018, including a strong fourth quarter . LUV stock may see some near-term turbulence, but at less than 10x forward earnings, it looks far too cheap.
Source: Shutterstock
Central Garden & Pet (CENT)
Central Garden & Pet (NASDAQ: CENT , NASDAQ: CENTA ) is trading near its lowest levels in over two years. The key catalyst of late has been a disappointing fiscal Q1 report that sent the stock down some 22%.
But the selloff looks like an overreaction. Central has seen nice growth in both its Garden and Pet businesses. Debt and equity offerings last year leave the company with some $500 million targeted for M&A; Central's current results include the costs of the offerings but no benefits from the spend. And yet CENTA (the cheaper of the two classes) now trades just under 15x the company's FY19 EPS guidance of $1.80 or higher.
For a company that has grown earnings steadily in recent years, and has solid market share in two stable, if not spectacular, consumer categories, that valuation is far too low. As Central works through the issues that hit Q1, and as it puts that cash to work, CENT and CENTA shares should recover.
Source: Montgomery County Planning Commission via Flickr (Modified)
Knoll (KNL)
The concern when it comes to Knoll (NYSE: KNL ) is that the company's exposure to office furniture represents a real risk. The sector didn't perform all that well as the economy rebounded. Lower demand due to "open office" trends and increased telecommuting offset higher spending from medium- and large-sized companies.
But the case for Knoll is based on the idea that the office furniture side of the business is becoming less important. The company's residential businesses are growing, including high-end offerings like Holly Hunt and Muuto. They're more profitable as well and shouldn't see quite the same "cyclicality" as the office furniture industry generally does.
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At just over 10x 2019 EPS estimates, Knoll is priced as if its business is headed for a decline. That doesn't appear to be the case, however. Rather, investors can own a high-end, well-managed, diversified business at an attractive multiple - and with a 3% dividend yield.
Source: a.dombrowski via Flickr
Brunswick (BC), MasterCraft (MCFT), Malibu Boats (MBUU) and Johnson Outdoors (JOUT)
Boating stocks, too, are valued as if earnings are going to peak. That might actually make some sense. The economic recovery will slow at some point. There are concerns that millennials may be less interested in motorized watersports (as opposed to kayaks or paddleboards). And potential boat-sharing models (something like Uber for boats) could impact demand.
But industry sales still remain well below past peaks. And valuations in the sector suggest opportunity for investors who believe the industry will continue to grow - and those valuations create a wealth of targets.
Brunswick (NYSE: BC ) probably is the safest play, given a broader international reach and a growing reliance on less-cyclical parts and accessories revenue. Malibu Boats (NASDAQ: MBUU ) has been the best grower - and the best-performing stock - of late, and should be the choice for investors seeing renewed confidence toward the space.
MasterCraft Boat Holdings (NASDAQ: MCFT ) is the cheapest of the group. And Johnson Outdoors (NASDAQ: JOUT ) is a bet on fishing growth, with smaller businesses in camping and diving supplies.
All four stocks look somewhat attractive. Investors of all types may have their own particular favorite.
Source: Shutterstock
Omnova Solutions (OMN)
Chemical manufacturer Omnova Solutions (NYSE: OMN ) is an intriguing turnaround opportunity. Operations have improved notably under a new CEO. Long-running declines in carpet and paper products are starting to fade as those categories become a small portion of total revenue.
The big problem is that history colors any bull case for OMN. This is a stock that was spun off at the beginning of this century - yet hit an all-time high of just $12 last year.
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But it's possible that this time is different, to use the four most dangerous words in investing. Management has changed. Paper and carpet headwinds finally are moderating. And below $8, OMN trades at a notable discount to those highs despite a decent fiscal 2018 performance. At 12x FY19 EPS, it might be worth seeing if Omnova finally can inflect upward.
Source: Mike Mozart via Flickr (Modified)
Target (TGT)
Target (NYSE: TGT ) is a stock that I've been skeptical of for quite a while and I'm still not completely convinced of the bull case. But it's much easier to turn bullish after the company's blowout Q4 report earlier this month. Target's omnichannel strategy has required billions of dollars in investments, but 5% same-store sales growth seems to show that spend is worth it.
Meanwhile, Target is guiding for 7-12% EPS growth in fiscal 2019 (ending January 2020), as operating margins are expected to expand. Yet the stock trades for just 13x that guidance.
Competition remains a risk, with Walmart (NYSE: WMT ) and Amazon.com (NASDAQ: AMZN ) building out their own omnichannel strategies. A cyclical swing downward could impact demand. But Target has done a much better job the last few years becoming a real rival to those other retail giants. It hasn't quite been rewarded enough.
As of this writing, Vince Martin is long shares of Photronics. He has no positions in any other securities mentioned.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | ABM Industries (ABM) Facility services provider ABM Industries (NYSE: ABM ) isn't exciting. But the same has been true of the returns provided by ABM stock. The concerns of late have been driven by worries about rising labor costs, and ABM's ability to pass along those costs. | ABM Industries (ABM) Facility services provider ABM Industries (NYSE: ABM ) isn't exciting. But the same has been true of the returns provided by ABM stock. The concerns of late have been driven by worries about rising labor costs, and ABM's ability to pass along those costs. | ABM Industries (ABM) Facility services provider ABM Industries (NYSE: ABM ) isn't exciting. But the same has been true of the returns provided by ABM stock. The concerns of late have been driven by worries about rising labor costs, and ABM's ability to pass along those costs. | But ABM trades at less than 15x FY20 EPS estimates, while growth should continue for some time. ABM Industries (ABM) Facility services provider ABM Industries (NYSE: ABM ) isn't exciting. But the same has been true of the returns provided by ABM stock. |
29392.0 | 2019-03-08 00:00:00 UTC | ABM Industries Enters Oversold Territory (ABM) | ABM | https://www.nasdaq.com/articles/abm-industries-enters-oversold-territory-abm-2019-03-08 | nan | nan | Legendary investor Warren Buffett advises to be fearful when others are greedy, and be greedy when others are fearful. One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative Strength Index, or RSI, which measures momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30.
In trading on Friday, shares of ABM Industries, Inc. (Symbol: ABM) entered into oversold territory, hitting an RSI reading of 29.2, after changing hands as low as $32.05 per share. By comparison, the current RSI reading of the S&P 500 ETF ( SPY ) is 49.0. A bullish investor could look at ABM's 29.2 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of ABM shares:
Looking at the chart above, ABM's low point in its 52 week range is $25.64 per share, with $38.37 as the 52 week high point - that compares with a last trade of $32.61.
Find out what 9 other oversold stocks you need to know about »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In trading on Friday, shares of ABM Industries, Inc. (Symbol: ABM) entered into oversold territory, hitting an RSI reading of 29.2, after changing hands as low as $32.05 per share. A bullish investor could look at ABM's 29.2 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of ABM shares: Looking at the chart above, ABM's low point in its 52 week range is $25.64 per share, with $38.37 as the 52 week high point - that compares with a last trade of $32.61. | The chart below shows the one year performance of ABM shares: Looking at the chart above, ABM's low point in its 52 week range is $25.64 per share, with $38.37 as the 52 week high point - that compares with a last trade of $32.61. In trading on Friday, shares of ABM Industries, Inc. (Symbol: ABM) entered into oversold territory, hitting an RSI reading of 29.2, after changing hands as low as $32.05 per share. A bullish investor could look at ABM's 29.2 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. | In trading on Friday, shares of ABM Industries, Inc. (Symbol: ABM) entered into oversold territory, hitting an RSI reading of 29.2, after changing hands as low as $32.05 per share. The chart below shows the one year performance of ABM shares: Looking at the chart above, ABM's low point in its 52 week range is $25.64 per share, with $38.37 as the 52 week high point - that compares with a last trade of $32.61. A bullish investor could look at ABM's 29.2 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. | In trading on Friday, shares of ABM Industries, Inc. (Symbol: ABM) entered into oversold territory, hitting an RSI reading of 29.2, after changing hands as low as $32.05 per share. A bullish investor could look at ABM's 29.2 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of ABM shares: Looking at the chart above, ABM's low point in its 52 week range is $25.64 per share, with $38.37 as the 52 week high point - that compares with a last trade of $32.61. |
29393.0 | 2019-03-07 00:00:00 UTC | Zacks.com featured highlights include: ABM, Atlas Air, Diebold Nixdorf, C&J and Arrow | ABM | https://www.nasdaq.com/articles/zacks.com-featured-highlights-include%3A-abm-atlas-air-diebold-nixdorf-cj-and-arrow-2019-03 | nan | nan | For Immediate Release
Chicago, IL - March 7, 2019 - Stocks in this week's article are ABM IndustriesABM , Atlas Air Worldwide HoldingsAAWW , Diebold Nixdorf, IncorporatedDBD, C&J Energy ServicesCJ and Arrow ElectronicsARW .
5 Stocks in Focus Following Broker Rating Upgrades
The Q4 earnings season is almost over with the majority of the companies having already unveiled their quarterly financial numbers. A high proportion of companies have reported better-than-expected earnings in the reporting cycle.
Generally, an earnings beat by a company leads to an appreciation in its stock price. Given this backdrop, investors like to add outperformers to their respective portfolios for healthy returns.
However, with a deluge o f earnings reports flooding the market, pinpointing outperformers is by no means an easy task for individual investors. In the absence of proper guidance, identifying a winning stock is akin to searching for 'a needle in a haystack'. The proper guidance, in this respect, comes from brokers, who are deemed to be experts, equipped with vast knowledge and know how as far the field of investing is concerned.
Of the three types of brokers/analysts (sell-side, buy-side and independent) present in the investment world, sell-side analysts are most common. Various brokerage firms employ them to provide unbiased opinion to investors after thorough research. Buy-side analysts are employed by hedge funds, mutual funds etc. while the independent ones simply sell their reports to investors.
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Diebold Nixdorf, Incorporated (DBD): Free Stock Analysis Report
ABM Industries Incorporated (ABM): Free Stock Analysis Report
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Atlas Air Worldwide Holdings (AAWW): Free Stock Analysis Report
C&J Energy Services, Inc. (CJ): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | For Immediate Release Chicago, IL - March 7, 2019 - Stocks in this week's article are ABM IndustriesABM , Atlas Air Worldwide HoldingsAAWW , Diebold Nixdorf, IncorporatedDBD, C&J Energy ServicesCJ and Arrow ElectronicsARW . Click to get this free report Diebold Nixdorf, Incorporated (DBD): Free Stock Analysis Report ABM Industries Incorporated (ABM): Free Stock Analysis Report Arrow Electronics, Inc. (ARW): Free Stock Analysis Report Atlas Air Worldwide Holdings (AAWW): Free Stock Analysis Report C&J Energy Services, Inc. (CJ): Free Stock Analysis Report To read this article on Zacks.com click here. 5 Stocks in Focus Following Broker Rating Upgrades The Q4 earnings season is almost over with the majority of the companies having already unveiled their quarterly financial numbers. | Click to get this free report Diebold Nixdorf, Incorporated (DBD): Free Stock Analysis Report ABM Industries Incorporated (ABM): Free Stock Analysis Report Arrow Electronics, Inc. (ARW): Free Stock Analysis Report Atlas Air Worldwide Holdings (AAWW): Free Stock Analysis Report C&J Energy Services, Inc. (CJ): Free Stock Analysis Report To read this article on Zacks.com click here. For Immediate Release Chicago, IL - March 7, 2019 - Stocks in this week's article are ABM IndustriesABM , Atlas Air Worldwide HoldingsAAWW , Diebold Nixdorf, IncorporatedDBD, C&J Energy ServicesCJ and Arrow ElectronicsARW . For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/357815/5-stocks-in-focus-following-broker-rating-upgrades Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. | Click to get this free report Diebold Nixdorf, Incorporated (DBD): Free Stock Analysis Report ABM Industries Incorporated (ABM): Free Stock Analysis Report Arrow Electronics, Inc. (ARW): Free Stock Analysis Report Atlas Air Worldwide Holdings (AAWW): Free Stock Analysis Report C&J Energy Services, Inc. (CJ): Free Stock Analysis Report To read this article on Zacks.com click here. For Immediate Release Chicago, IL - March 7, 2019 - Stocks in this week's article are ABM IndustriesABM , Atlas Air Worldwide HoldingsAAWW , Diebold Nixdorf, IncorporatedDBD, C&J Energy ServicesCJ and Arrow ElectronicsARW . For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/357815/5-stocks-in-focus-following-broker-rating-upgrades Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. | Click to get this free report Diebold Nixdorf, Incorporated (DBD): Free Stock Analysis Report ABM Industries Incorporated (ABM): Free Stock Analysis Report Arrow Electronics, Inc. (ARW): Free Stock Analysis Report Atlas Air Worldwide Holdings (AAWW): Free Stock Analysis Report C&J Energy Services, Inc. (CJ): Free Stock Analysis Report To read this article on Zacks.com click here. For Immediate Release Chicago, IL - March 7, 2019 - Stocks in this week's article are ABM IndustriesABM , Atlas Air Worldwide HoldingsAAWW , Diebold Nixdorf, IncorporatedDBD, C&J Energy ServicesCJ and Arrow ElectronicsARW . while the independent ones simply sell their reports to investors. |
29394.0 | 2019-03-07 00:00:00 UTC | ABM Industries (ABM) Q1 2019 Earnings Conference Call Transcript | ABM | https://www.nasdaq.com/articles/abm-industries-abm-q1-2019-earnings-conference-call-transcript-2019-03-07 | nan | nan | ABM Industries (NYSE: ABM)
Q1 2019 Earnings Conference Call
March 7, 2019 8:30 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Greetings, and welcome to the ABM Industries first-quarter 2019 earnings conference call . [Operator instructions] Please note this conference is being recorded. I would now like to turn the conference over to your host today, Ms. Susie Kim, vice president of investor relations and treasurer.
Please proceed, ma'am.
Susie Choi -- Vice President of Investor Relations and Treasurer
Thank you all for joining us this morning. With us today are Scott Salmirs, our president and chief executive officer; and Anthony Scaglione, executive vice president and chief financial officer. We issued our press release yesterday afternoon announcing our first-quarter fiscal 2019 financial results. A copy of this release and an accompanying slide presentation can be found on our corporate website.
Before we begin, I would like to remind you that our call and presentation today contain predictions, estimates and other forward-looking statements. Our use of the words estimate, expect and similar expressions are intended to identify these statements. These statements represent our current judgment of what the future holds. While we believe them to be reasonable, these statements are subject to risks and uncertainties that could cause our actual results to differ materially.
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These factors are described in the slides that accompanies our presentation as well as in our filings with the SEC. During the course of this call, certain non-GAAP financial information will be presented. A reconciliation of those numbers to GAAP financial measures is available at the end of the presentation and on the company's website under the Investor tab. I would now like to turn the call over to Scott.
Scott Salmirs -- President and Chief Executive Officer
Thanks, Susie. Good morning, and thanks for joining us for our first quarterly call of the new fiscal year. By now, I'm sure you've had a chance to review the corresponding press release we issued yesterday afternoon. I'm pleased that our first-quarter performance signals a good start to the year as the results met our expectations.
This was particularly encouraging given the tough comparison we were facing due to our organic outperformance last year. The execution of our entire organization has been tremendous as we've been driving our business during this challenging labor environment and also preparing for the rollouts of our many critical IT implementations that are occurring throughout the year. The amount of effort and focus needed is like nothing I've seen in my career while team continues to rise up. And outside of operations, there were a number of accounting changes that began this quarter as well, namely the adoption of ASC 606 and 853 as well as our new presentation of the intersegment revenue.
Anthony will discuss the implications of these in greater detail shortly, but we've been very busy, to say the least. To summarize, revenue grew to $1.6 billion for the quarter, an increase of 1.2%, or approximately 2% on a more normalized basis when adjusting for the aforementioned accounting changes. Our GAAP continuing earnings per share was $0.20 or $0.31 on an adjusted basis. And our adjusted EBITDA margin was 4.3% for the quarter, which also reflects some incremental positive impact from those accounting changes.
A few highlights from the quarter included sustained momentum within business and Industry, and technology and Manufacturing, as both of these segments expanded with strategic national accounts and drove bottom-line results. We've been focusing on maximizing our scale and building on these large multisite clients since organizing under our industry group structure. This is a great testament to how our service excellence and stellar relationships can lead to continuing opportunities as our clients grow. Our domestic Technical Solutions business was another bright spot during the quarter as we continued to build the strong pipeline of projects with the backlog of both the $100 million mark, which is churning at a healthy rate.
We are particularly excited about the early cross-selling activity in the education sector and in certain municipalities. You may have read our press releases announcing some great wins including our Energy Performance Contracting win at West Mifflin Area School District in Pennsylvania, and our Water meter replacement project for the Rainbow Municipal Water District in San Diego, California. We're also seeing gradual, steady progress at some of the business segments that have been challenged. Aviation has been pressured as a result of the tight labor markets and the elevated PSA hiring process, which can be more protracted.
And as we've discussed in this market, speed to hiring is a competitive advantage. To combat some of these pressures, our strategy of expanding into new service lines and higher pay scales to attract team members continues to gain traction. I'm excited to announce that we're going to start a new airplane fueling operation this month. While our initial assignment is not large compared to some of our other concentrated contracts, it is an example of how our industry group structure has led to new opportunities to provide value for our clients beyond our legacy service contract mix and give ABM the opportunity to diversify our Aviation offering.
As we progress through 2019, we will remain focused on the key themes we outlined on our year-end call: Growing our business through new sales while managing retention, continuing to navigate the difficult labor environment, optimizing our business through technology and data and generating consistent free cash flow. Our commitment to growth is unwavering as we continue targeting new sales accelerations, managing retention strategically and pushing hard for escalations, where appropriate. It's fairly for me to see how energized our teams are to drive sales across all our industry groups. I just returned from a quarterly business review with our industry group presidents, and one of our many discussions revolved around new cross-selling strategies and how we can maximize up selling, different services within each industry growth.
Our sales culture is undeniable, and I'm pleased to report that we met our first-quarter target for new sales. As you know, our goal is to replicate the record-breaking new sales performance we achieved in fiscal 2018. We continue to manage the difficult labor environment, which remains in a similar state for the last few quarters. We've increased the number of recruiters in the field and are being as creative as ever in attempting to attract employees but make no mistake, it's a challenge.
On a positive note, we've seen some success with our targeted operational action plans and pursuit of pricing escalations. While it's about getting through a cycle, leveraging our relationships and having active dialogues with our clients continues to be the key to recovering price over time. Client engagement will be particularly important as we navigate the uncertainty surrounding the economy. It remains to be seen whether the next 12 months will prove to be as resilient as the previous 12 months, or whether there will be a slowdown in economic activity or customer decision-making.
From tracking labor trends to client decision-making on projects, we are keenly focused on any potential change so we can calibrate our business nimbly. We have certainly proven we can operate in any environment because we have the unique ability to customize our approach by client, and the fact that our services remain core to the operations of the facility in good times or challenging ones. Leveraging our strength through technology and data continues to be one of the highest priorities with systems going live throughout the year. Since November, we have successfully launched our new HRIS system and implemented e-pay, our new cloud-based time and attendance system for our distributed workforce.
E-pay now allows our field teams to manage and schedule labor at the site level with real-time dynamic data. Over the next several quarters, we will learn and improve based on gaining a deeper understanding of practical application these tools can have on our operations. Our goal is to achieve productivity improvements. And in the next year, we expect to enhance functionalities via updates and module additions for maximum effectiveness.
We are also actively working on the implementation of our new Oracle fusion ERP system, which is slated to go live in the second half of this year and provide a strong financial data framework as we look to fiscal 2020 and beyond. Since the inception of our 2020 vision, we have been speaking about becoming a data-driven company. These enhancements are providing a stronger foundation for our operators, and over the next couple of years, we are looking forward to gaining a higher degree of insights that will lead to better plans, more informed decisions and greater operational efficiencies. From a free cash flow standpoint, our outlook remains unchanged.
The first quarter has historically been our lowest cash flow period. But on a trailing 12-months basis, free cash flow is approximately $200 million. In closing, I want to thank our entire organization for a solid start to the new fiscal year. These are exciting but particularly busy times at ABM and our team members continue to execute.
We remain focused on increasing ABM's scalability, efficiency and nimbleness, so we can raise the bar for excellence even higher. And we would not have progressed to this point without the support and guidance of our board of directors. We have several members retiring this year, and I want to thank them for their contribution and service to ABM over the years. Phil Ferguson, Tony Fernandes, and Lauralee Martin have not only been valuable partners and advisors to our company, but they have been role models to me personally, and I know I speak for Anthony as well.
ABM has been building trusted relationships with our clients and team members for over the past 110 years. And today, we are one of the largest facility services company in the world. The improvements we are making this year in conjunction with an already diversified and resilient business model will optimize and strengthen our future legacy. With that, I'll now turn the call over to Anthony.
Anthony Scaglione -- Executive Vice President and Chief Financial Officer
Thank you, and good morning. I'd also like to commend our team for executing during the first quarter, while simultaneously working toward launching our many transformational IT projects. With any major system and process implementation, change management is a key component. And as we deploy our system, we are also carefully assessing and identifying the necessary updates and modifications we must make to fully take advantage of the technology we are putting in the hands of our employees.
With the projects that have gone live thus far namely HCM and e-pay, we are encouraged by what these systems have to offer in terms of productivity and consistency in data capture and analytics. But we realize these benefits will take time to fully mature across our employee base. As Scott mentioned, our next major project is our cloud-based ERP system rollout, which we anticipate will begin in the second half of this year and begin to streamline our back-office function, create a more efficient control framework and provide a scalable platform for our future. As you can imagine, there is much work involved but we are very excited about the potential of a more integrated financial system and end-to-end process.
Regarding our retiring board members, I'd like to thank them as well. In particular, as the chairman of our Audit Committee, Tony Fernandes has provided a great deal of guidance since my appointment as CFO, and I've valued his perspective and advice over the years. Now before I dive into our results, let me provide you with a few notes. Our first-quarter results reflect GCA's complete embedding into our organic base.
As Scott mentioned, our results now reflect our adoption of accounting standard topic 606 and 853. These changes are as follows: Impact of revenues associated with service concession arrangements was approximately $11 million, reflected predominantly in our Aviation segment. Sales commission costs are now deferred and recognized over the expected customer relationship period, ranging from one to eight years. Previously commission costs were expensed incurred.
While impacting all segments, this primarily impacted technical solutions due to how commission plans are structured in that segment. The total amount deferred that was previously expensed was approximately $1 million. The profit on uninstalled materials associated with our technical solutions, project-related contracts are now deferred until installation is substantially complete. Previously, these amounts were recognized upon delivery under the percentage of completion method, the impact was approximately $1 million.
Initial fees from sales of franchise licensees are now deferred and recognized over the terms of the initial franchise agreements ranging from one to three years. Previously, initial fees from sales of franchise licenses were recognized when sold. Franchise fees are reflected in our technical solutions segment, but we did not have a material impact from the adoption of 606. In total, our revenue for the first quarter on a year-over-year basis was reduced by $11.3 million, associated with service concession arrangements or ASC 853.
ASC 606 had a $1.3 million impact to revenue and a $0.03 impact to income from continuing operations per diluted share on an non-adjusted and adjusted basis. Now let me address our first-quarter results, as reported. Total revenues for the quarter were $1.6 billion, up 1.2% in total and approximately 2% organically versus last year, which was driven by the business and industry, technology and manufacturing and technical solutions segments. On a GAAP basis, our income from continuing operations was $13 million or $0.20 per diluted share compared to $28 million or $0.42 last year.
Last year's results reflect a onetime net tax benefit of $21.7 million due to the Tax Cuts and Jobs Act related to the remeasurement of deferred tax assets and liabilities, which was partially offset by a tax expense associated with the repatriation of foreign earnings. On an adjusted basis, income from continuing operations for the quarter increased to $20.8 million or $0.31 per diluted share compared to last year. ASC 606 positively impacted these results by $0.03 on both a GAAP and adjusted basis. During the quarter, we generated adjusted EBITDA of approximately $68.8 million at a margin rate of 4.3% compared to $65.1 million at a margin of 4.1% last year.
These results were partially driven by the full run rate of synergies related to our GCA acquisition as well as the B&I segment contribution. Higher labor and related also impacted our year-over-year results as we did not begin experiencing labor pressures until the beginning of the second quarter of fiscal 2018. Having said that, the net of these factors were planned for in our quarterly and full-year guidance. Turning to our segment results.
As we mentioned last year, beginning in 2019, we will be breaking out total intersegment revenue, which reflects services provided between our industry groups. Our B&I segment grew $775 million or 2.4%. Since the last year, B&I has demonstrated strength underscoring the resilience of our business as it continues to drive performance. Expansion of strategic national accounts and tag growth in urban markets contributed to this quarter's performance.
Incremental revenue from our U.K. operation also contributed to the quarter, but we do not expect that trend to continue as our largest contract with the Transport for London comps fully during Q2. Operating margins for the quarter were 4.7% versus 3.8% last year, driven by higher margin revenue contribution and certain onetime items that benefited the quarter by approximately 30 basis points, including lower SUI and SUTA taxes in certain states. Aviation reported revenues of $252 million reflecting $11 million reduction related to ASC 853 due to the accounting for public sector parking leases.
These amounts are not classified as contra-revenue, where it was previously reported as rent expense. This segment also experienced the loss of certain airline contracts last year, predominantly beginning in Q3. Operating profit for the quarter was approximately $4 million. We continue to make strategic investments in our team and are encouraged by our new contract wins in catering and logistics, and as Scott announced, airplane fueling operations.
Looking ahead, we remain balanced in our outlook between new contract wins and anticipated losses in certain markets and service lines as contracts come up for renewal, while certain services are in sourced. Technology & Manufacturing revenues increased approximately 2% to $236 million with an operating profit of $18 million. T&M has been another strong performing segment since last year, as this business continues to expand with our top High Tech clients while also driving good tag revenue. Revenue in education was $205 million, a year-over-year decline of approximately $2 million reflecting last year's tough renewal season, as this segment was navigating a greater degree of pressure related to labor and pricing.
In our continued effort to navigate the labor market, we were more measured in our approach to renewals, as we sought to maintain and improve our contract mix. Q1 of last year was a period of transition and integration. So on a comparable basis, the team's discipline and focus on stabilizing labor cost in remaining markets as well as the impact of synergies led to operating profit and margins above last year. Looking ahead, our education team is focused on capitalizing on opportunities for the critical April to May buying season, and our K-12 markets and continues to build our pipeline in the end markets we serve.
Cross-selling and targeting first-time outsourcing opportunities also remain a key long-term focus. healthcare revenue was $67 million for the quarter with operating profit of $1.2 million. We continue to see long-term opportunities in this segment, although it's currently not performing to the expectations, and we continue to look at structural changes to address these challenges. Finally, technical solutions reported revenues of $108 million, up 4% versus last year.
Our U.S.-based business continues to thrive as growth occurred at a high single-digit rate, driven by a combination of increases in electrical vehicle charging stations installation, bundled energy projects and maintenance work. We're also seeing opportunities in our electrical power services as data center expansions are increasing and our 35 years of needed certification continues to be a competitive advantage. Offsetting some of these results was an expected contraction in our U.K. business, stemming from conditions we discussed heavily last quarter.
For the overall segment, operating profit for the quarter was approximately $6 million at a margin rate of 5.5% versus 5.3% last year. Positively impacting the quarter was the impact of ASC 606. As I mentioned earlier, 606 had a heavier impact on this segment as sales commissions are no longer expensed incurred and the profit associated with uninstalled materials is no longer recognized upon delivery. These two factors had approximately a positive $2.5 million impact to operating profit in the quarter.
Overtime, we expect these amounts to normalize but quarter-end delivery of equipment and expected revenue could add some volatility. Lastly, we are encouraged by Technical Solutions sales pipeline, the largest we've seen in many quarters and project backlog. And outside the potential timing impact related to 606, we expect the operations to be in line with our historical growth and profit ranges. Turning to cash and liquidity.
Cash flow from operating activities in the first quarter of the fiscal year are usually lower than in subsequent quarters, primarily due to the timing of certain working capital requirements. Our DSOs and working capital were modestly behind our internal forecast but our teams remain focused, and we are confident in maintaining our strong trailing performance. We ended the quarter with total debt including standby letters of credit of $1.2 billion and a bank-adjusted leverage ratio of approximately 3.45 times. During the quarter, we paid our 211th consecutive quarterly cash dividend of $0.18 per common share for a total distribution of approximately $12 million to stockholders.
Finally, while we are adjusting the first quarter, and we are not updating our financial outlook for fiscal 2019, I wanted to remind everyone that we previously mentioned that the new accounting pronouncements could have a negative $0.05 to a positive $0.05 impact on our results for the total year, which we did not include in our guidance outlook range. We will continue to communicate the impact of the accounting change with each successive quarter as we progress through the year. Operator, we are now ready for questions.
Questions and Answers:
Operator
Thank you. [Operator instructions] Our first question comes from Andrew Wittmann with Robert W. Baird. Please proceed with the question.
Andrew Wittmann -- Baird -- Analyst
Great. Good morning and thanks for taking my question. I guess, I wanted to start a little bit, I guess, with education. Thank you, Anthony, for the detail talking about kind of the explanation of the growth rate, it sounded like last year's retention was kind of which -- what's driving the growth rate to be negative.
But I guess on the longer-term basis, I still think that this is probably the -- and you've mentioned this in your script, and this is probably the best secular opportunity for first-time outsourcers though. Given that GCA is now in the base and an extra quarter as well, Scott, how should we evaluate your success in growing that business from here? What is the target? Or maybe what's the growth rate that you're happy with and not happy with? I think GCA's history has been pretty growthy company over time, and undoubtedly, when you bought it, you expected that to continue to be the case. So I want to understand how you -- what you would consider to be the successful growth rate coming out of Education?
Scott Salmirs -- President and Chief Executive Officer
Yes. Thanks, Andy. I don't think anything has changed. We've continued to say we think this will be a GDP-plus business, and we still feel strongly that it will.
And you have to remember, we're still early on, right? We're just putting our teams together. We -- from a cross-selling standpoint, we're just starting to get traction now. And I think a lot will be told as we head into the buying season. As you guys know, the buying season is really in that April, May, June, July period, and we feel good about our pipeline going into it.
So we're super positive about Education. And to your point, it is -- for us, we look at this as a $25 billion potential market, and a lot of it is still in-sourced. And we have projects going on internally to target outsourcing some of those in-sourced accounts but that's a longer-term initiative for us. So again, we feel really positive about this segment.
Andrew Wittmann -- Baird -- Analyst
OK. That's helpful. I guess, I wanted to dig next into -- let's talk about aviation and the healthcare segments. I guess I'd like to understand both of these segments kind of started the year slow in terms of the margin performances versus where you expect them to end the year, based on your segment margin guidance, and even those margins are up pretty significantly, I think, year-over-year basis as well.
So I guess my question here is, what's going to change in Aviation and in healthcare in particular, to help you achieve the margin targets that you laid out?
Scott Salmirs -- President and Chief Executive Officer
Yes. So Aviation, and we know this, right, from history, it's a cyclical business, and you have these-large scale contracts first. Right now the biggest -- I guess, the biggest impediment in Aviation is still the labor market, the things that I talked about in my script, right? It's just a longer hiring process, and we are typically on the lower scale in terms of wages for the services we do, which is why we're looking at things like catering, logistics and airplane fueling, which could -- and having higher pay rates. So for us, it's as much a labor story as anything else.
And top line, it's in and out there. There are cycles where the airlines will take certain of our services and move them in-house and we've seen that, and there are other times where they look to outsource. So when we look at Aviation, we tend to look at it in kind of two to three-year trenches because of the cycles of the airlines and how big they are. But we still feel really strong about that segment long term.
And then with healthcare, just to bring that aligned, that's -- it's a small segment. We had -- recently, we had a leadership change, someone that's come from our Technical Solutions business. We think there's opportunity as we look at our mix of business to have more critical services there, which tends to be higher margin, and we're pushing along in that area of healthcare. We feel good about healthcare as well.
And Anthony, I don't know if you wanted to add.
Anthony Scaglione -- Executive Vice President and Chief Financial Officer
Yes. The only thing I would add, Andy, is on Aviation, as you recall, last year, we had some start-up cost that from a margin perspective impacted us in the second half, and we were clear around that impact. So as you look at the margin progression throughout the year, assuming from a comparability standpoint, that doesn't lapse. We should have some expansion on the margin side just from the comparability issue.
Andrew Wittmann -- Baird -- Analyst
OK. That's helpful. And then just a point of clarification here. There was a lot of, I think, important numbers on the accounting that came out pretty fast.
We'll check the transcript on some of them, but maybe the most important one was, I think, around this 30 basis points, Anthony. This -- I think, you said, had to do with state unemployment insurance and something else that I wasn't familiar with. I guess my question is, can you explain that a little bit more? Was that 30 basis points benefit to the consolidated results? Or was that when you're talking about B&I? I'm sorry what's that I missed but I think is important.
Anthony Scaglione -- Executive Vice President and Chief Financial Officer
Yes. Don't worry, there's a lot of changes in the quarter, so I understand the confusion. This is not an accounting change. This is a state unemployment change that occurred at the beginning of the year that predominantly benefited B and I just because of their presence in certain jurisdictions that had those changes and it's predominantly in the payroll tax area.
So when you look at B&I's results, their results were favorably impacted by the FUTA, which is a federal unemployment tax, and SUI taxes, which as you know, are more first-half loaded than second-half loaded, but did have an impact on all segments but B&I predominantly.
Andrew Wittmann -- Baird -- Analyst
OK. So that's 30 basis points to the company then?
Anthony Scaglione -- Executive Vice President and Chief Financial Officer
30 basis points to the company, but to B&I. So 30 basis points to B&I would be less on a consolidated basis.
Andrew Wittmann -- Baird -- Analyst
OK, OK. And so did the unemployment insurance tax rates decrease, and you're still able to bill at the same level? Is that what happened or what was typically -- is that's what happened?
Anthony Scaglione -- Executive Vice President and Chief Financial Officer
That's exactly right.
Andrew Wittmann -- Baird -- Analyst
OK, cool. Let's see here, what else. So just last question for now. Maybe I'll jump back in.
But on software and IT, and clearly a lot of important initiatives that are -- that you're working all very hard on. And I think what you're doing there was clear and the timing on those programs and what they're supposed to do for you was also clear. But I guess Anthony, as you embarked on this cloud-based ERP or even as you still put out in the initial stages here of the other timekeeping thing, are you carrying extra costs today for change management consultants, just extra IT staff or other things? Can you get your arms around the magnitude of those? And when those might peel off? And then I think also important is your thoughts on when the efficiency benefits can be -- can start to be realized and to what degree?
Anthony Scaglione -- Executive Vice President and Chief Financial Officer
Yes. There are some costs that are being capitalized as part of the implementations that go through our capex budget, and we outline that at year-end in terms of the increase in capex associated with the investments. There are some duplicative costs that we're capturing as part of the integration as we migrate over, and as we migrate away from legacy systems there's some duplicative costs that we're capturing as part of our transition. To your question around where the benefits, it's really -- it is going to be 2020 and beyond, Andy.
These systems when they go live, it takes time from change management, exactly your point for us to start to realize the benefits. Some of them will be immediate from the back of the house perspective in terms of efficiencies. But when you look at the front line, which is where the price really is in terms of operating on a more efficient basis, that takes time. And I think that's going to be a multiyear journey.
Scott Salmirs -- President and Chief Executive Officer
And the way I think about this, Andy, is that when you do these systems implementations, especially these more broad ones, I look at this in three phases, right? The first phase is changing behavior of our people to get them to use it and play around with it, right? And you get through that phase. And then it's the second phase, which is like you start getting learnings from it, and you start like understanding the data what it can mean and then really Phase 3 of this is how do you apply those learnings and actually get a move on operational efficiency where it hits bottom line. And there's no -- I don't think there's any set time line for each of these phases. So I think with some of them, we're just in that initial phase of how do you change behavior like I look at the tag price, right, that we've put in over a year ago and our first phase of this was like getting adoption, getting usage, and we're pretty much where we want to be.
Now we're in this phase where what are we learning from it? And ultimately, we'll get to a point where it will actually have some significant impact. So it's just -- it's a timing thing.
Andrew Wittmann -- Baird -- Analyst
I might jump back in later, but I'll yield the floor for now.
Thanks. Our next question comes from Tate Sullivan with Maxim Group. Please proceed with your question.
Tate Sullivan -- Maxim Group -- Analyst
Hi. Thank you. Good morning. Thank you for that detail on Technical Solutions on what helped that segment grow faster than your other segments.
Just a couple of clarifications. When you said backlog is greater than $100 million in that segment, is that for all the business in Technical Solutions or just certain projects that you book as backlog?
Scott Salmirs -- President and Chief Executive Officer
That's all the business.
Tate Sullivan -- Maxim Group -- Analyst
And directionally, is that up from prior year or historically higher?
Anthony Scaglione -- Executive Vice President and Chief Financial Officer
Yes. We have the largest backlog at the end of Q1 that we've had in our history, where we ran out of $100 million that's where we feel it's a healthy backlog, and it's really a function of backlog and churn. And we try to target a relative proportion in terms of how that ultimate backlog gets recognized, and we feel really pleased about that group's execution on the piping as well as the execution from churning that backlog.
Scott Salmirs -- President and Chief Executive Officer
Yes. And I would just tell you -- just to give you some color commentary on this, I would just add, one of our largest gatherings, we had over 1,400 people in the Technical Solutions space between our in-house people and our franchise operations and that group just got -- has so much enthusiasm, so excited about everything that's going on in the energy space right now and the power space. We're really, really optimistic about the future of where this is all heading.
Tate Sullivan -- Maxim Group -- Analyst
OK. And then Anthony, I think you mentioned to the growth in Technical Solutions is in line with historical growth rates but what are -- I mean, are you referring post-GCA or how should I frame that comment?
Anthony Scaglione -- Executive Vice President and Chief Financial Officer
Yes. I think Technical Solutions really continue to be the tale of two cities or two regions, the U.S. and the U.K. From the U.S.
perspective, it continues to be a growth area. We see a positive pipeline. Our growth has been close to double-digit, and as we mentioned, over $100 million of backlog. U.K.
continues to operate in the challenge macroeconomic environment, as expected, so even though it's down, it's -- what we expected, given some of the challenges that we outlined late last year on the macroeconomic front. So when we look at the Technical Solutions business in totality performing as expected. But in the regional perspective, the U.S. is clearly outperforming.
Tate Sullivan -- Maxim Group -- Analyst
OK. Is the U.K. -- can you quantify or prefer not to as the U.K. majority of that Technical Solutions workers?
Scott Salmirs -- President and Chief Executive Officer
No, the U.K.'s roughly $20 million I think in the quarter for the total amount of revenue that we generate.
Tate Sullivan -- Maxim Group -- Analyst
OK. And then last one for me. You mentioned getting them to fueling in your aviation business in addition of the catering service that you did before. Is your -- do you experience meaningful upfront costs when expand services in one of your business segments?
Anthony Scaglione -- Executive Vice President and Chief Financial Officer
Sometimes we had some upfront, what we call, start-up costs. For this particular, there was not material start-up cost that we would outline or call out given the small nature of the contract in totality.
Tate Sullivan -- Maxim Group -- Analyst
OK, OK. Thank you very much for all that detail. I'll jump back in line.
Operator
Thanks. [Operator instructions] Our next question comes from Marc Riddick with Sidoti. Please proceed with your question.
Marc Riddick -- Sidoti and Company -- Analyst
Hey, good morning. I wanted to touch on the Education area for a moment and maybe if you could talk a little bit more about what you're looking at going into the key selling season? If there's a way to sort of -- for folks to think about the changes in the go-to-market strategy or maybe some of the things that you think will be helpful in driving the Education sales that you see coming up in the seasonal time that would be very helpful.
Scott Salmirs -- President and Chief Executive Officer
Sure. I don't know that there's anything different than what our strategy was last year, right? We have -- we're expanding our sales force. We are being very strategic about how we're hitting it, and when we went into the sales season last year, it was really -- it was a point where GCA was just coming together, just getting integrated. And we would all say, we probably weren't as aligned and ready for the season as we are now.
I can tell you that our pipeline is up 20% year-over-year heading into the sales season, the big churn season for us versus where it was last year. So we're optimistic about that. So I think for the fact that we have some more time with GCA integrated under our belt, we're more prepared, we have more sales people, we feel good about it. So it's less of the different strategic approaches, it's more about getting one of our tactical ducks in line.
Marc Riddick -- Sidoti and Company -- Analyst
OK, great. And then circling back on Aviation for a moment, looking at the opportunities that you're pursuing in the catering and now with fueling, I was wondering if you could sort of touch a little bit about the potential scalability that you see with those? And also, and I don't know how connected this is but how that may or may not tie into the technology upgrades that you've got going on this year? What type of opportunities you think might be available not just maybe with those service offerings but then other future service offerings within the Aviation group?
Scott Salmirs -- President and Chief Executive Officer
Yes. So I think it's early on for us on some of these new service lines. It's hard to kind of size the price when you're so early in. I could tell you on the catering and logistics side, we are seeing much more opportunity in terms of RFP than we would have imagined last year.
So it remains to be seen what our win rate will be clearly but definitely, a bigger pipeline of RFP, so that's pretty exciting. Fueling, way too early to tell, we've just got our first contract. And then from a technology side, it's less about technology. I think it's more about some of the older initiatives like beacon technology and being able to be more efficient in terms of dynamically dispatching our people.
And even that's still kind of early on, but we are focusing on that and with our new e-pay system, time and attendance, our hope is that, that's going to have some significant traction in the next 12 to 18 months in terms of scheduling. There's -- these scheduling dynamics in Aviation is very different than any of our other segments because if we think about it, being in an airport, it's a very horizontal kind of campuswide spread distributed versus more of a tighter vertical office building, if you will. So scheduling tends to be more important in the Aviation sector and more dynamic because you have heavy peak summer season and holiday season. So we're hoping over time that will have traction for us.
Marc Riddick -- Sidoti and Company -- Analyst
OK. And then last one for me. I was wondering if there are any -- and it may be a little early for this but when you're looking at some of the service line pushes that you're utilizing within Aviation, is it possible that we might see similar types of things when there was some commentary around potential structural changes within healthcare. So I was wondering if that's kind of -- if we could sort of see a similar blueprint within the healthcare segment going forward? Thanks.
Scott Salmirs -- President and Chief Executive Officer
Yes. I think for healthcare, it will be a little different. healthcare will be more about focus. So in healthcare, we do a wide range of services.
This is one we are literally, if you think about in the acute situation, which in the hospital setting, we are valeting cars, we're parking cars, we're doing wheelchair pushes, we're cleaning, and we are taking care of some of the small critical equipment now whether it's an intravenous machine or what have you. And we even do some catering there. We have nutrition program. So I think for us, it's not about getting into a new service line, it's about where we want to focus and the critical equipment taking care of the small electrical and mechanical equipment, we think, has great opportunity for us, because it has margin potential.
And again, we're having a new leader that has experience in that area of focus, so could drive some real change. So it's less about new service line and more doubling down on one's that we're already playing at.
Marc Riddick -- Sidoti and Company -- Analyst
That's very helpful. Thank you very much.
Operator
Thank you. At this time I would like to turn the call back over to management for closing comments.
Scott Salmirs -- President and Chief Executive Officer
Well, thanks, everyone, for joining. We're -- as you could tell, we're off to a really good start for the first quarter. For us, we look at this as how our sales are doing and our sales are on track and keeping with our historic record of last year, we're very focused on retention in this pricing environment, and we're going to continue to manage labor with acute focus and we'll be implementing our system. So we have a really busy year ahead of us in a dynamic environment, but as enthusiastic as ever about where we're heading, and I just want to, one last time, commend the team for everything they're doing, and thanks to everyone who are listening in.
And we'll see you in Q2. Thank you.
Operator
[Operator signoff]
Duration: 44 minutes
Call Participants:
Susie Choi -- Vice President of Investor Relations and Treasurer
Scott Salmirs -- President and Chief Executive Officer
Anthony Scaglione -- Executive Vice President and Chief Financial Officer
Andrew Wittmann -- Baird -- Analyst
Tate Sullivan -- Maxim Group -- Analyst
Marc Riddick -- Sidoti and Company -- Analyst
More ABM analysis
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | 10 stocks we like better than ABM Industries When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. * David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and ABM Industries wasn't one of them! ABM Industries (NYSE: ABM) Q1 2019 Earnings Conference Call March 7, 2019 8:30 a.m. | 10 stocks we like better than ABM Industries When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. * David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and ABM Industries wasn't one of them! Operator [Operator signoff] Duration: 44 minutes Call Participants: Susie Choi -- Vice President of Investor Relations and Treasurer Scott Salmirs -- President and Chief Executive Officer Anthony Scaglione -- Executive Vice President and Chief Financial Officer Andrew Wittmann -- Baird -- Analyst Tate Sullivan -- Maxim Group -- Analyst Marc Riddick -- Sidoti and Company -- Analyst More ABM analysis This article is a transcript of this conference call produced for The Motley Fool. | 10 stocks we like better than ABM Industries When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. * David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and ABM Industries wasn't one of them! Operator [Operator signoff] Duration: 44 minutes Call Participants: Susie Choi -- Vice President of Investor Relations and Treasurer Scott Salmirs -- President and Chief Executive Officer Anthony Scaglione -- Executive Vice President and Chief Financial Officer Andrew Wittmann -- Baird -- Analyst Tate Sullivan -- Maxim Group -- Analyst Marc Riddick -- Sidoti and Company -- Analyst More ABM analysis This article is a transcript of this conference call produced for The Motley Fool. | 10 stocks we like better than ABM Industries When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. * David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and ABM Industries wasn't one of them! Operator [Operator signoff] Duration: 44 minutes Call Participants: Susie Choi -- Vice President of Investor Relations and Treasurer Scott Salmirs -- President and Chief Executive Officer Anthony Scaglione -- Executive Vice President and Chief Financial Officer Andrew Wittmann -- Baird -- Analyst Tate Sullivan -- Maxim Group -- Analyst Marc Riddick -- Sidoti and Company -- Analyst More ABM analysis This article is a transcript of this conference call produced for The Motley Fool. |
29395.0 | 2019-03-06 00:00:00 UTC | After-Hours Earnings Report for March 6, 2019 : GWRE, AEO, CBPO, DSGX, ABM, YEXT, TTEC, WHD, CDNA, BLDP, NINE, CMTL | ABM | https://www.nasdaq.com/articles/after-hours-earnings-report-march-6-2019-gwre-aeo-cbpo-dsgx-abm-yext-ttec-whd-cdna-bldp | nan | nan | The following companies are expected to repor t earnings after hours on 03/06/2019. Visit our Earnings Calendar for a full list of expected earnings releases.
Guidewire Software, Inc. ( GWRE ) is reporting for the quarter ending January 31, 2019. The business software company's consensus earnings per share forecast from the 5 analysts that follow the stock is $-0.06. This value represents a 0.00% decrease compared to the same quarter last year. GWRE missed the consensus earnings per share in the 2nd calendar quarter of 2018 by -13.04%. Zacks Investment Research reports that the 2019 Price to Earnings ratio for GWRE is 283.42 vs. an industry ratio of 60.50, implying that they will have a higher earnings growth than their competitors in the same industry.
American Eagle Outfitters, Inc. ( AEO ) is reporting for the quarter ending January 31, 2019. The retail (shoe) company's consensus earnings per share forecast from the 8 analysts that follow the stock is $0.42. This value represents a 4.55% decrease compared to the same quarter last year. In the past year AEO has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2019 Price to Earnings ratio for AEO is 13.90 vs. an industry ratio of 17.40.
China Biologic Products Holdings, Inc. ( CBPO ) is reporting for the quarter ending December 31, 2018. The biomedical (gene) company's consensus earnings per share forecast from the 1 analyst that follows the stock is $0.83. This value represents a 7.78% decrease compared to the same quarter last year. The "days to cover" for this stock exceeds 12 days. Zacks Investment Research reports that the 2018 Price to Earnings ratio for CBPO is 24.50 vs. an industry ratio of 18.50, implying that they will have a higher earnings growth than their competitors in the same industry.
The Descartes Systems Group Inc. ( DSGX ) is reporting for the quarter ending January 31, 2019. The computer software company's consensus earnings per share forecast from the 4 analysts that follow the stock is $0.11. This value represents a 22.22% increase compared to the same quarter last year. Zacks Investment Research reports that the 2019 Price to Earnings ratio for DSGX is 83.88 vs. an industry ratio of 93.50.
ABM Industries Incorporated ( ABM ) is reporting for the quarter ending January 31, 2019. The building maintenance & services company's consensus earnings per share forecast from the 1 analyst that follows the stock is $0.27. This value represents a 3.85% increase compared to the same quarter last year. ABM missed the consensus earnings per share in the 1st calendar quarter of 2018 by -7.14%. Zacks Investment Research reports that the 2019 Price to Earnings ratio for ABM is 18.28 vs. an industry ratio of 17.00, implying that they will have a higher earnings growth than their competitors in the same industry.
Yext, Inc. ( YEXT ) is reporting for the quarter ending January 31, 2019. The technology services company's consensus earnings per share forecast from the 5 analysts that follow the stock is $-0.19. This value represents a 5.56% decrease compared to the same quarter last year. Zacks Investment Research reports that the 2019 Price to Earnings ratio for YEXT is -23.71 vs. an industry ratio of 1.30.
TTEC Holdings, Inc. ( TTEC ) is reporting for the quarter ending December 31, 2018. The technology services company's consensus earnings per share forecast from the 2 analysts that follow the stock is $0.76. This value represents a 13.43% increase compared to the same quarter last year. TTEC missed the consensus earnings per share in the 2nd calendar quarter of 2018 by -26.67%. Zacks Investment Research reports that the 2018 Price to Earnings ratio for TTEC is 20.99 vs. an industry ratio of 1.30, implying that they will have a higher earnings growth than their competitors in the same industry.
Cactus, Inc. ( WHD ) is reporting for the quarter ending December 31, 2018. The oil company's consensus earnings per share forecast from the 4 analysts that follow the stock is $0.45. This value represents a 99.90% decrease compared to the same quarter last year. In the past year WHD and beat the expectations the other three quarters. Zacks Investment Research reports that the 2018 Price to Earnings ratio for WHD is 20.48 vs. an industry ratio of -2.40, implying that they will have a higher earnings growth than their competitors in the same industry.
CareDx, Inc. ( CDNA ) is reporting for the quarter ending December 31, 2018. The medical services company's consensus earnings per share forecast from the 3 analysts that follow the stock is $-0.07. This value represents a 36.36% increase compared to the same quarter last year. Zacks Investment Research reports that the 2018 Price to Earnings ratio for CDNA is -24.11 vs. an industry ratio of 7.30.
Ballard Power Systems, Inc. ( BLDP ) is reporting for the quarter ending December 31, 2018. The electrical instrument company's consensus earnings per share forecast from the 2 analysts that follow the stock is $-0.03. This value represents a 200.00% decrease compared to the same quarter last year. The "days to cover" for this stock exceeds 13 days. Zacks Investment Research reports that the 2018 Price to Earnings ratio for BLDP is -30.73 vs. an industry ratio of 19.00.
Nine Energy Service, Inc. ( NINE ) is reporting for the quarter ending December 31, 2018. The oil (field services) company's consensus earnings per share forecast from the 4 analysts that follow the stock is $0.50. This value represents a 433.33% increase compared to the same quarter last year. The last two quarters NINE had negative earnings surprises; the lates t report they missed by -1.75%. Zacks Investment Research reports that the 2018 Price to Earnings ratio for NINE is 15.65 vs. an industry ratio of 7.90, implying that they will have a higher earnings growth than their competitors in the same industry.
Comtech Telecommunications Corp. ( CMTL ) is reporting for the quarter ending January 31, 2019. The wireless equipment company's consensus earnings per share forecast from the 2 analysts that follow the stock is $0.15. This value represents a 114.29% increase compared to the same quarter last year. In the past year CMTL has beat the expectations every quarter. The highest one was in the 4th calendar quarter where they beat the consensus by 540%. Zacks Investment Research reports that the 2019 Price to Earnings ratio for CMTL is 25.87 vs. an industry ratio of -227.50, implying that they will have a higher earnings growth than their competitors in the same industry.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | ABM Industries Incorporated ( ABM ) is reporting for the quarter ending January 31, 2019. ABM missed the consensus earnings per share in the 1st calendar quarter of 2018 by -7.14%. Zacks Investment Research reports that the 2019 Price to Earnings ratio for ABM is 18.28 vs. an industry ratio of 17.00, implying that they will have a higher earnings growth than their competitors in the same industry. | Zacks Investment Research reports that the 2019 Price to Earnings ratio for ABM is 18.28 vs. an industry ratio of 17.00, implying that they will have a higher earnings growth than their competitors in the same industry. ABM Industries Incorporated ( ABM ) is reporting for the quarter ending January 31, 2019. ABM missed the consensus earnings per share in the 1st calendar quarter of 2018 by -7.14%. | Zacks Investment Research reports that the 2019 Price to Earnings ratio for ABM is 18.28 vs. an industry ratio of 17.00, implying that they will have a higher earnings growth than their competitors in the same industry. ABM Industries Incorporated ( ABM ) is reporting for the quarter ending January 31, 2019. ABM missed the consensus earnings per share in the 1st calendar quarter of 2018 by -7.14%. | ABM Industries Incorporated ( ABM ) is reporting for the quarter ending January 31, 2019. ABM missed the consensus earnings per share in the 1st calendar quarter of 2018 by -7.14%. Zacks Investment Research reports that the 2019 Price to Earnings ratio for ABM is 18.28 vs. an industry ratio of 17.00, implying that they will have a higher earnings growth than their competitors in the same industry. |
29396.0 | 2019-03-06 00:00:00 UTC | 5 Stocks in Focus Following Broker Rating Upgrades | ABM | https://www.nasdaq.com/articles/5-stocks-in-focus-following-broker-rating-upgrades-2019-03-06 | nan | nan | The Q4 earnings season is almost over with the majority of the companies having already unveiled their quarterly financial numbers. A high proportion of companies have reported better-than-expected earnings in the reporting cycle.
Generally, an earnings beat by a company leads to an appreciation in its stock price. Given this backdrop, investors like to add outperformers to their respective portfolios for healthy returns.
However, with a deluge o f earnings reports flooding the market, pinpointing outperformers is by no means an easy task for individual investors. In the absence of proper guidance, identifying a winning stock is akin to searching for 'a needle in a haystack'. The proper guidance, in this respect, comes from brokers, who are deemed to be experts, equipped with vast knowledge and know how as far the field of investing is concerned.
Of the three types of brokers/analysts (sell-side, buy-side and independent) present in the investment world, sell-side analysts are most common. Various brokerage firms employ them to provide unbiased opinion to investors after thorough research. Buy-side analysts are employed by hedge funds, mutual funds etc. while the independent ones simply sell their reports to investors.
Why Such Advice is Invaluable
Brokers, irrespective of their types, conduct thorough research of the stocks covered by them. They have at their disposal a lot more information on a company and its prospects than individual investors.
To attain their objective, they go through minute details of the publicly available financial documents apart from attending company conference calls and other presentations. Consequently, the opinion of brokers should act as a valuable guide for investors while deciding their course of action (buy, sell or hold) on a particular stock.
Direction of Earnings Estimates: A Winning Pointer
Since brokers follow the stocks in their coverage minutely, they revise their earnings estimates after carefully examining the pros and cons of an event for the concerned company. In fact, a rating upgrade or downgrade by brokers has the potential to immediately influence the price of the stock.
Since brokers arrive at their recommendation on a stock after thoroughly analyzing the nitty-gritties associated with the company, it is natural that if investors see them improving their recommendation on a particular stock, they are inclined to believe that there is a solid reason/logic behind it. In fact, a rating upgrade generally leads to stock price appreciation. Similarly, the price of a stock may plummet following a rating downgrade.
Estimates can move north for a number of reasons - favorable earnings performance, a bullish guidance, product launch or any favorable macro scenario.
Making the Most of Broker Opinions
The above write-up clearly suggests that by following broker actions, one can arrive at a winning portfolio of stocks. Keeping this in mind, we have designed a screen to shortlist stocks based on improving analyst recommendation and upward revisions to earnings estimates over the last four weeks. Also, since the price/sales ratio is a strong complementary valuation metric in the presence of analyst information, it has been included. The price/sales ratio takes care of the company's top line, making the strategy foolproof.
Screening Criteria
# (Up- Down Rating)/ Total (4 weeks) =Top #75: This gives the list of top 75 companies that have witnessed net upgrades over the last four weeks.
% change in Q (1) est. (4 weeks) = Top #10: This gives the top 10 stocks that have witnessed earnings estimate revisions over the past four weeks for the upcoming quarter.
To ensure that the strategy is a winning one, covering all bases, we have added the following screening parameters:
Price-to-Sales = Bot%10: The lower the ratio the better, companies meeting this criteria are in the bottom 10% of our universe of over 7,700 stocks with respect to this ratio.
Price greater than 5: A stock trading below $5 will not likely create significant interest for most investors.
Average Daily Volume greater than 100,000 shares over the last 20 trading days: Volume has to be significant to ensure that these are easily traded.
Market value ($ mil) = Top #3000: This gives us stocks that are the top 3000 if one judges by market capitalization.
Com/ADR/Canadian= Com: This eliminates the ADR and Canadian stocks.
Here are five of the 10 stocks that made it through the screen:
ABM IndustriesABM is headquartered in San Francisco, CA. The company provides engineering, janitorial, parking, and facility solutions to commercial, industrial, institutional, and retail facilities. ABM Industries, carrying a Zacks Rank #3 (Hold), has an impressive track record with respect to earnings, having surpassed the Zacks Consensus Estimate in three of the trailing four quarters with the average surprise being 1.2%.
Atlas Air Worldwide HoldingsAAWW is a provider of outsourced aircraft and aviation operating services across the globe.
The company is based out of Purchase, NY and carries a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for the current year has improved 3.1% over the past 60 days. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Diebold Nixdorf, IncorporatedDBD is the provider of connected commerce solutions to financial institutions. This Zacks Rank #2 Ohio-based company provides automatic teller machines, financial and point-of-sale services. The Zacks Consensus Estimate for the current year has improved in excess of 100% over the past 60 days.
C&J Energy ServicesCJ provides onshore well construction, well completion and support to oil and gas exploration and production companies. This Zacks Rank #3 company also offers complementary oilfield services. Texas-based C&J Services surpassed the Zacks Consensus Estimate in three of the trailing four quarters with the average beat being 3.9%.
Arrow ElectronicsARW is based in New York and carries a Zacks Rank #3. It is one of the largest distributors of electronic components and enterprise computing products across the globe. The expected EPS growth rate for 3-5 years is 6.9%.
You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Click here to sign up for a free trial to the Research Wizard today .
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
Disclosure: Performance information for Zacks' portfolios and strategies are available at: h ttps://www.zacks.com/performance.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Here are five of the 10 stocks that made it through the screen: ABM IndustriesABM is headquartered in San Francisco, CA. ABM Industries, carrying a Zacks Rank #3 (Hold), has an impressive track record with respect to earnings, having surpassed the Zacks Consensus Estimate in three of the trailing four quarters with the average surprise being 1.2%. Click to get this free report Diebold Nixdorf, Incorporated (DBD): Free Stock Analysis Report ABM Industries Incorporated (ABM): Free Stock Analysis Report Arrow Electronics, Inc. (ARW): Free Stock Analysis Report Atlas Air Worldwide Holdings (AAWW): Free Stock Analysis Report C&J Energy Services, Inc. (CJ): Free Stock Analysis Report To read this article on Zacks.com click here. | Click to get this free report Diebold Nixdorf, Incorporated (DBD): Free Stock Analysis Report ABM Industries Incorporated (ABM): Free Stock Analysis Report Arrow Electronics, Inc. (ARW): Free Stock Analysis Report Atlas Air Worldwide Holdings (AAWW): Free Stock Analysis Report C&J Energy Services, Inc. (CJ): Free Stock Analysis Report To read this article on Zacks.com click here. Here are five of the 10 stocks that made it through the screen: ABM IndustriesABM is headquartered in San Francisco, CA. ABM Industries, carrying a Zacks Rank #3 (Hold), has an impressive track record with respect to earnings, having surpassed the Zacks Consensus Estimate in three of the trailing four quarters with the average surprise being 1.2%. | Click to get this free report Diebold Nixdorf, Incorporated (DBD): Free Stock Analysis Report ABM Industries Incorporated (ABM): Free Stock Analysis Report Arrow Electronics, Inc. (ARW): Free Stock Analysis Report Atlas Air Worldwide Holdings (AAWW): Free Stock Analysis Report C&J Energy Services, Inc. (CJ): Free Stock Analysis Report To read this article on Zacks.com click here. Here are five of the 10 stocks that made it through the screen: ABM IndustriesABM is headquartered in San Francisco, CA. ABM Industries, carrying a Zacks Rank #3 (Hold), has an impressive track record with respect to earnings, having surpassed the Zacks Consensus Estimate in three of the trailing four quarters with the average surprise being 1.2%. | Here are five of the 10 stocks that made it through the screen: ABM IndustriesABM is headquartered in San Francisco, CA. ABM Industries, carrying a Zacks Rank #3 (Hold), has an impressive track record with respect to earnings, having surpassed the Zacks Consensus Estimate in three of the trailing four quarters with the average surprise being 1.2%. Click to get this free report Diebold Nixdorf, Incorporated (DBD): Free Stock Analysis Report ABM Industries Incorporated (ABM): Free Stock Analysis Report Arrow Electronics, Inc. (ARW): Free Stock Analysis Report Atlas Air Worldwide Holdings (AAWW): Free Stock Analysis Report C&J Energy Services, Inc. (CJ): Free Stock Analysis Report To read this article on Zacks.com click here. |
29397.0 | 2019-03-06 00:00:00 UTC | Earnings Reaction History: ABM INDUSTRIES, 85.7% Follow-Through Indicator, 7.3% Sensitive | ABM | https://www.nasdaq.com/articles/earnings-reaction-history-abm-industries-857-follow-through-indicator-73-sensitive-2019-03 | nan | nan | Expected Earnings Release: 03/06/2019, After-hours
Avg. Extended-Hours Dollar Volume: $2,300,075
ABM INDUSTRIES ( ABM ) is due to issue its quarterly earnings report in the upcoming extended-hours session. Given its history, traders can expect light trading in the issue immediately following its quarterly earnings announcement. Historical earnings event related premarket and after-hours trading activity in ABM indicates that the price change in the extended hours is likely to be of significant value in forecasting additional price movement by the following regular session close.
Last 12 Qtrs Positive Only Price Reactions
Percent of time added to extended-hours gains: 100%
Average next regular session additional gain: 3.8%
Over the prior three fiscal years (12 quarters), when shares of ABM rose in the extended-hours session in reaction to its earnings announcement, history shows that 100.0% of the time (4 events) the stock posted additional gains in the following regular session by an average of 3.8%.
Last 12 Qtrs Negative Only Price Reactions
Percent of time added to extended-hours losses: 66.7%
Average next regular session additional loss: 5%
Over that same historical period, when shares of ABM dropped in the extended-hours in reaction to its earnings announcement, history shows that 66.7% of the time (2 events) the stock dropped further, adding to the extended-hours losses by an average of 5.0% by the following regular session close.
Data provided by the MT Pro service at MTNewswires.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Last 12 Qtrs Positive Only Price Reactions Percent of time added to extended-hours gains: 100% Average next regular session additional gain: 3.8% Over the prior three fiscal years (12 quarters), when shares of ABM rose in the extended-hours session in reaction to its earnings announcement, history shows that 100.0% of the time (4 events) the stock posted additional gains in the following regular session by an average of 3.8%. Last 12 Qtrs Negative Only Price Reactions Percent of time added to extended-hours losses: 66.7% Average next regular session additional loss: 5% Over that same historical period, when shares of ABM dropped in the extended-hours in reaction to its earnings announcement, history shows that 66.7% of the time (2 events) the stock dropped further, adding to the extended-hours losses by an average of 5.0% by the following regular session close. Extended-Hours Dollar Volume: $2,300,075 ABM INDUSTRIES ( ABM ) is due to issue its quarterly earnings report in the upcoming extended-hours session. | Last 12 Qtrs Positive Only Price Reactions Percent of time added to extended-hours gains: 100% Average next regular session additional gain: 3.8% Over the prior three fiscal years (12 quarters), when shares of ABM rose in the extended-hours session in reaction to its earnings announcement, history shows that 100.0% of the time (4 events) the stock posted additional gains in the following regular session by an average of 3.8%. Last 12 Qtrs Negative Only Price Reactions Percent of time added to extended-hours losses: 66.7% Average next regular session additional loss: 5% Over that same historical period, when shares of ABM dropped in the extended-hours in reaction to its earnings announcement, history shows that 66.7% of the time (2 events) the stock dropped further, adding to the extended-hours losses by an average of 5.0% by the following regular session close. Extended-Hours Dollar Volume: $2,300,075 ABM INDUSTRIES ( ABM ) is due to issue its quarterly earnings report in the upcoming extended-hours session. | Last 12 Qtrs Positive Only Price Reactions Percent of time added to extended-hours gains: 100% Average next regular session additional gain: 3.8% Over the prior three fiscal years (12 quarters), when shares of ABM rose in the extended-hours session in reaction to its earnings announcement, history shows that 100.0% of the time (4 events) the stock posted additional gains in the following regular session by an average of 3.8%. Last 12 Qtrs Negative Only Price Reactions Percent of time added to extended-hours losses: 66.7% Average next regular session additional loss: 5% Over that same historical period, when shares of ABM dropped in the extended-hours in reaction to its earnings announcement, history shows that 66.7% of the time (2 events) the stock dropped further, adding to the extended-hours losses by an average of 5.0% by the following regular session close. Extended-Hours Dollar Volume: $2,300,075 ABM INDUSTRIES ( ABM ) is due to issue its quarterly earnings report in the upcoming extended-hours session. | Extended-Hours Dollar Volume: $2,300,075 ABM INDUSTRIES ( ABM ) is due to issue its quarterly earnings report in the upcoming extended-hours session. Last 12 Qtrs Positive Only Price Reactions Percent of time added to extended-hours gains: 100% Average next regular session additional gain: 3.8% Over the prior three fiscal years (12 quarters), when shares of ABM rose in the extended-hours session in reaction to its earnings announcement, history shows that 100.0% of the time (4 events) the stock posted additional gains in the following regular session by an average of 3.8%. Historical earnings event related premarket and after-hours trading activity in ABM indicates that the price change in the extended hours is likely to be of significant value in forecasting additional price movement by the following regular session close. |
29398.0 | 2019-02-20 00:00:00 UTC | Zacks.com featured highlights include: Abercrombie, Bloomin', DICK'S, ABM and Avnet | ABM | https://www.nasdaq.com/articles/zacks.com-featured-highlights-include%3A-abercrombie-bloomin-dicks-abm-and-avnet-2019-02-20 | nan | nan | For Immediate Release
Chicago, IL - February 20, 2019 - Stocks in this week's article are Abercrombie & Fitch Co.ANF , Bloomin' BrandsBLMN , DICK'S Sporting GoodsDKS , ABM IndustriesABM and AvnetAVT .
5 Stocks in the Limelight Due to Recent Broker Rating Upgrades
A high proportion of companies have reported better-than-expected earnings per share in the curren t report ing cycle.
Generally, an earnings beat by a company leads to an appreciation in its stock price. Given this backdrop, investors would like to add outperformers to their respective portfolios for healthy returns.
However, with a plethora o f earnings reports flooding the market during the reporting cycle, pinpointing outperformers is by no means an easy task for individual investors. In the absence of proper guidance, identifying a winning stock is akin to searching for 'a needle in a haystack', for an investor. The proper guidance, in this respect, comes from brokers, who are deemed to be experts, equipped with vast knowledge and know how as far as the field of investing is concerned.
Of the three types of brokers/analysts (sell-side, buy-side and independent) present in the investment world, sell-side analysts are most common. Various brokerage firms employ them to provide unbiased opinion to investors after thorough research. Buy-side analysts are employed by hedge funds, mutual funds etc. while the independent ones simply sell their reports to investors.
Brokers, irrespective of their type, attend company conference calls/presentations and scrutinize every detail available publicly before advising investors about their course of action (buy, sell or hold a stock). In view of their expertise and profound understanding of stocks and the investing world, it is a no-brainer that investors should pay heed to broker advice to generate the maximum from their portfolios.
Earnings Estimate Revisions
Since brokers follow the stocks in their coverage closely, they revise their earnings estimates on a stock after carefully examining the pros and cons of an event for the concerned company. Their action is certainly not arbitrary or illogical. Thus, estimate revisions serve as an important guide regarding the price of a stock.
For example, an earnings beat by a company generally leads to upward estimate revisions with prices moving north. Similarly, lackluster earnings results often lead to stock price depreciation. Investors tend to be guided by the direction of estimate revisions and stock price while formulating their investment strategy. To take care of the earnings performance, we have designed a screen based on improving analyst recommendation and upward estimate revisions over the last four weeks.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/355408/5-stocks-in-limelight-due-to-recent-broker-rating-upgrades
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
About Screen of the Week
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Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
ABM Industries Incorporated (ABM): Free Stock Analysis Report
Avnet, Inc. (AVT): Free Stock Analysis Report
Abercrombie & Fitch Company (ANF): Free Stock Analysis Report
Bloomin' Brands, Inc. (BLMN): Free Stock Analysis Report
DICK'S Sporting Goods, Inc. (DKS): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | For Immediate Release Chicago, IL - February 20, 2019 - Stocks in this week's article are Abercrombie & Fitch Co.ANF , Bloomin' BrandsBLMN , DICK'S Sporting GoodsDKS , ABM IndustriesABM and AvnetAVT . Click to get this free report ABM Industries Incorporated (ABM): Free Stock Analysis Report Avnet, Inc. (AVT): Free Stock Analysis Report Abercrombie & Fitch Company (ANF): Free Stock Analysis Report Bloomin' Brands, Inc. (BLMN): Free Stock Analysis Report DICK'S Sporting Goods, Inc. (DKS): Free Stock Analysis Report To read this article on Zacks.com click here. Brokers, irrespective of their type, attend company conference calls/presentations and scrutinize every detail available publicly before advising investors about their course of action (buy, sell or hold a stock). | Click to get this free report ABM Industries Incorporated (ABM): Free Stock Analysis Report Avnet, Inc. (AVT): Free Stock Analysis Report Abercrombie & Fitch Company (ANF): Free Stock Analysis Report Bloomin' Brands, Inc. (BLMN): Free Stock Analysis Report DICK'S Sporting Goods, Inc. (DKS): Free Stock Analysis Report To read this article on Zacks.com click here. For Immediate Release Chicago, IL - February 20, 2019 - Stocks in this week's article are Abercrombie & Fitch Co.ANF , Bloomin' BrandsBLMN , DICK'S Sporting GoodsDKS , ABM IndustriesABM and AvnetAVT . For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/355408/5-stocks-in-limelight-due-to-recent-broker-rating-upgrades Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. | Click to get this free report ABM Industries Incorporated (ABM): Free Stock Analysis Report Avnet, Inc. (AVT): Free Stock Analysis Report Abercrombie & Fitch Company (ANF): Free Stock Analysis Report Bloomin' Brands, Inc. (BLMN): Free Stock Analysis Report DICK'S Sporting Goods, Inc. (DKS): Free Stock Analysis Report To read this article on Zacks.com click here. For Immediate Release Chicago, IL - February 20, 2019 - Stocks in this week's article are Abercrombie & Fitch Co.ANF , Bloomin' BrandsBLMN , DICK'S Sporting GoodsDKS , ABM IndustriesABM and AvnetAVT . Earnings Estimate Revisions Since brokers follow the stocks in their coverage closely, they revise their earnings estimates on a stock after carefully examining the pros and cons of an event for the concerned company. | Click to get this free report ABM Industries Incorporated (ABM): Free Stock Analysis Report Avnet, Inc. (AVT): Free Stock Analysis Report Abercrombie & Fitch Company (ANF): Free Stock Analysis Report Bloomin' Brands, Inc. (BLMN): Free Stock Analysis Report DICK'S Sporting Goods, Inc. (DKS): Free Stock Analysis Report To read this article on Zacks.com click here. For Immediate Release Chicago, IL - February 20, 2019 - Stocks in this week's article are Abercrombie & Fitch Co.ANF , Bloomin' BrandsBLMN , DICK'S Sporting GoodsDKS , ABM IndustriesABM and AvnetAVT . To take care of the earnings performance, we have designed a screen based on improving analyst recommendation and upward estimate revisions over the last four weeks. |
29399.0 | 2019-02-19 00:00:00 UTC | 5 Stocks in Limelight Due to Recent Broker Rating Upgrades | ABM | https://www.nasdaq.com/articles/5-stocks-in-limelight-due-to-recent-broker-rating-upgrades-2019-02-19 | nan | nan | A high proportion of companies have reported better-than-expected earnings per share in the curren t report ing cycle.
Generally, an earnings beat by a company leads to an appreciation in its stock price. Given this backdrop, investors would like to add outperformers to their respective portfolios for healthy returns.
However, with a plethora o f earnings reports flooding the market during the reporting cycle, pinpointing outperformers is by no means an easy task for individual investors. In the absence of proper guidance, identifying a winning stock is akin to searching for 'a needle in a haystack', for an investor. The proper guidance, in this respect, comes from brokers, who are deemed to be experts, equipped with vast knowledge and know how as far as the field of investing is concerned.
Of the three types of brokers/analysts (sell-side, buy-side and independent) present in the investment world, sell-side analysts are most common. Various brokerage firms employ them to provide unbiased opinion to investors after thorough research. Buy-side analysts are employed by hedge funds, mutual funds etc. while the independent ones simply sell their reports to investors.
Brokers, irrespective of their type, attend company conference calls/presentations and scrutinize every detail available publicly before advising investors about their course of action (buy, sell or hold a stock). In view of their expertise and profound understanding of stocks and the investing world, it is a no-brainer that investors should pay heed to broker advice to generate the maximum from their portfolios.
Earnings Estimate Revisions
Since brokers follow the stocks in their coverage closely, they revise their earnings estimates on a stock after carefully examining the pros and cons of an event for the concerned company. Their action is certainly not arbitrary or illogical. Thus, estimate revisions serve as an important guide regarding the price of a stock.
For example, an earnings beat by a company generally leads to upward estimate revisions with prices moving north. Similarly, lackluster earnings results often lead to stock price depreciation. Investors tend to be guided by the direction of estimate revisions and stock price while formulating their investment strategy. To take care of the earnings performance, we have designed a screen based on improving analyst recommendation and upward estimate revisions over the last four weeks.
Value the Top line
To design a winning strategy, it is not wise to consider only the bottom line. In fact, according to some market watchers, a top-line outperformance is more creditable for a stock than a bottom line outperformance, under some circumstances. Therefore, to make the strategy full-proof, one needs to address top-line concerns as well. We have considered the price/sales ratio, which serves as a strong complementary valuation metric, for screening stocks.
Screening Criteria
# (Up-Down Rating)/ Total (4 weeks) =Top #75: This gives the list of top 75 companies that have witnessed net upgrades over the last 4 weeks.
% change in Q (1) est. (4 weeks) = Top #10: This gives the top 10 stocks that have witnessed earnings estimate revisions over the past 4 weeks for the upcoming quarter.
Price-to-Sales = Bot%10: The lower the ratio the better, companies meeting this criteria are in the bottom 10% of our universe of over 7,700 stocks with respect to this ratio.
Price greater than 5: A stock trading below $5 will not likely be of significant interest to most investors.
Average Daily Volume greater than 100,000 shares over the last 20 trading days: Volume has to be significant to ensure that these are easily traded.
Market value ($ mil) = Top #3000: This gives us stocks that are in the top 3000 if one judges by market capitalization.
Com/ADR/Canadian= Com: This eliminates the ADR and Canadian stocks.
Here are five of the 10 stocks that made it through the screen:
Abercrombie & Fitch Co.ANF offers apparel, intimates, personal care products, and accessories for men and women. The stock carries a Zacks Rank #2 (Buy). It has an impressive track record with respect to earnings, having surpassed the Zacks Consensus Estimate in each of the trailing four quarters with the average beat being 88.6%. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Bloomin' Brands ( BLMN ), based in Tampa, FL, is a casual dining restaurant company. It has a portfolio of differentiated restaurant concepts. The stock carries a Zacks Rank #3 (Hold). The Zacks Consensus Estimate for current-quarter earnings has improved 1.4% over the past 60 days.
DICK'S Sporting GoodsDKS , based in Pennsylvania, operates as a full-line sporting goods retailer. The company offers athletic shoes, apparel, accessories and a broad selection of outdoor and athletic equipments. The Zacks Consensus Estimate for current-year earnings has increased 0.6% over the past 60 days. The stock carries a Zacks Rank #3.
ABM IndustriesABM is headquartered in San Francisco, CA. The company provides engineering, janitorial, parking, and facility solutions to commercial, industrial, institutional, and retail facilities. ABM Industries, carrying a Zacks Rank #3, has an impressive track record with respect to earnings, having surpassed the Zacks Consensus Estimate in three of the trailing four quarters with the average surprise being 1.2%.
AvnetAVT is based in Phoenix, AZ. It is one of the world's largest distributors of electronic components and computer products. Avnet, carrying a Zacks Rank #3, has an impressive track record with respect to earnings, having surpassed the Zacks Consensus Estimate in three of the trailing four quarters with the average beat being 2.6%.
You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Click here to sign up for a free trial to the Research Wizard today .
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
Disclosure: Performance information for Zacks' portfolios and strategies are available at: h ttps://www.zacks.com/performance.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
ABM Industries Incorporated (ABM): Free Stock Analysis Report
Avnet, Inc. (AVT): Free Stock Analysis Report
Abercrombie & Fitch Company (ANF): Free Stock Analysis Report
Bloomin' Brands, Inc. (BLMN): Free Stock Analysis Report
DICK'S Sporting Goods, Inc. (DKS): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | ABM IndustriesABM is headquartered in San Francisco, CA. ABM Industries, carrying a Zacks Rank #3, has an impressive track record with respect to earnings, having surpassed the Zacks Consensus Estimate in three of the trailing four quarters with the average surprise being 1.2%. Click to get this free report ABM Industries Incorporated (ABM): Free Stock Analysis Report Avnet, Inc. (AVT): Free Stock Analysis Report Abercrombie & Fitch Company (ANF): Free Stock Analysis Report Bloomin' Brands, Inc. (BLMN): Free Stock Analysis Report DICK'S Sporting Goods, Inc. (DKS): Free Stock Analysis Report To read this article on Zacks.com click here. | ABM Industries, carrying a Zacks Rank #3, has an impressive track record with respect to earnings, having surpassed the Zacks Consensus Estimate in three of the trailing four quarters with the average surprise being 1.2%. Click to get this free report ABM Industries Incorporated (ABM): Free Stock Analysis Report Avnet, Inc. (AVT): Free Stock Analysis Report Abercrombie & Fitch Company (ANF): Free Stock Analysis Report Bloomin' Brands, Inc. (BLMN): Free Stock Analysis Report DICK'S Sporting Goods, Inc. (DKS): Free Stock Analysis Report To read this article on Zacks.com click here. ABM IndustriesABM is headquartered in San Francisco, CA. | ABM Industries, carrying a Zacks Rank #3, has an impressive track record with respect to earnings, having surpassed the Zacks Consensus Estimate in three of the trailing four quarters with the average surprise being 1.2%. Click to get this free report ABM Industries Incorporated (ABM): Free Stock Analysis Report Avnet, Inc. (AVT): Free Stock Analysis Report Abercrombie & Fitch Company (ANF): Free Stock Analysis Report Bloomin' Brands, Inc. (BLMN): Free Stock Analysis Report DICK'S Sporting Goods, Inc. (DKS): Free Stock Analysis Report To read this article on Zacks.com click here. ABM IndustriesABM is headquartered in San Francisco, CA. | ABM IndustriesABM is headquartered in San Francisco, CA. ABM Industries, carrying a Zacks Rank #3, has an impressive track record with respect to earnings, having surpassed the Zacks Consensus Estimate in three of the trailing four quarters with the average surprise being 1.2%. Click to get this free report ABM Industries Incorporated (ABM): Free Stock Analysis Report Avnet, Inc. (AVT): Free Stock Analysis Report Abercrombie & Fitch Company (ANF): Free Stock Analysis Report Bloomin' Brands, Inc. (BLMN): Free Stock Analysis Report DICK'S Sporting Goods, Inc. (DKS): Free Stock Analysis Report To read this article on Zacks.com click here. |
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