ABM Industries Inc (NYSE:ABM) stock fell 10.05% (As on December 14, 11:26:14 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the fourth quarter of FY 23. The company’s adjusted EBITDA for the quarter was $144.2 million, marking a 10% increase. Despite challenges in the commercial real estate market, ABM’s Business & Industry segment posted modest organic revenue growth, demonstrating the company’s resilience and strategic positioning. Q4 net income rose by 29% to $62.8 million.

ABM in the fourth quarter of FY 23 has reported the adjusted earnings per share of $1.01, beating the analysts’ estimates for the adjusted earnings per share of 93 cents. The company had reported the adjusted revenue growth of 4.1 percent to $2.09 billion in the fourth quarter of FY 23, beating the analysts’ estimates for revenue of $2.04 billion. The growth was attributed to strong performances across several segments, particularly Aviation and Technical Solutions.

Additionally, ABM’s Board of Directors approved a $150 million expansion of the existing share repurchase authorization, demonstrating confidence in the company’s financial stability and commitment to delivering shareholder value. The company also declared a quarterly cash dividend of $0.225 per common share, a 2.3% increase from the prior dividend

Looking ahead to fiscal 2024, ABM anticipates adjusted EPS to be in the range of $3.20 to $3.40, with an adjusted EBITDA margin between 6.2% and 6.5%. The company expects to face continued labor inflation and challenges in the commercial real estate market but remains focused on winning new business, expanding services with existing clients, and driving operational efficiency through its ELEVATE program.

On the other hand, the company has recently announced the expansion of its relationship with LaGuardia Gateway Partners (“LGP”), the developer and manager of LaGuardia Terminal B, to provide comprehensive integrated facility services and best-in-class traveler experiences at Terminal B. Following LGP’s historic and award-winning $5.1 billion redevelopment of Terminal B, one of the largest public-private partnerships in U.S. history, ABM has been selected by LGP to provide a “one team” approach for comprehensive facility operations and services, with the goal to provide a safe, seamless, and consistent experience for guests, while driving long-term asset preservation, efficiency, sustainability, and diversity across the 1.3 million square foot facility. LaGuardia Airport’s Terminal B is the first in North America to earn the highest Global 5-Star Rating from Skytrax. LaGuardia’s Terminal B has also been named the World’s Best New Airport Terminal in the 2023 World Airport Awards.