ABM Industries, Inc. (NYSE:ABM) in the fourth quarter of FY 17 has reported a loss of $3.6 million, after posting a profit in the same period a year earlier. This lead to the stock crash of over 9.9% in the after-hours session (As of 7:18PM EST on December 13th, 2017; Source: Google finance).
For the fourth quarter of 2017, the group has posted the adjusted income from continuing operations of $23.5 million compared to $29.2 million, for the fourth quarter of FY16. In addition, operationally, ABM’s adjusted income from continuing operations for the fourth quarter of 2017 was impacted by reserves recorded for historical years’ multi-employer union benefit obligations primarily impacting the Business & Industry segment, as well as client costs stemming from a previously-announced contract termination which occurred within the company’s Aviation segment during the third quarter of FY17.
ABM Industries in the fourth quarter of FY 17 has the adjusted earnings per share of 15 cents, beating the analysts’ estimates for the adjusted earnings per share of 13 cents. The company had reported the adjusted revenue of $2.48 billion in the third quarter of FY 17, beating the analysts’ estimates for revenue of $2.47 billion. The company received $178.5 million of incremental revenues primarily related to the company’s recent acquisition of GCA Services Group, that was acquired on September 1st, 2017. Further, ABN has posted organic growth of 2.3%, compared to the corresponding quarter of FY16. ABN’s organic revenue performance, that excludes acquisitions and divestitures, was due to both new business wins and expansions with existing clients within the Aviation and Business & Industry segments.
Additionally, ABM ended the fourth quarter with total debt, including standby letters of credit of $1.3 billion. ABM has paid a quarterly cash dividend of $0.170 per common share for a total distribution of $11.1 million. The company has approved a 3.0% increase for the quarterly cash dividend to $0.175 per common share, which is payable on February 5th, 2018 to stockholders of record on January 4, 2018.
For FY 18, ABM Industries expects GAAP income from continuing operations in the range of $1.33 to $1.43 per diluted share, or adjusted income from continuing operations in the range of $1.70 to $1.80 per diluted share. Meanwhile, from the first quarter of 2018, ABM will change its reportable operating segments based on its recent acquisition of GCA Services Group. The company expects to announce these new reportable operating segments at its 2018 Investor Day on January 18th, 2018.