ABM Industries Misses Estimates; Updates Guidance (ABM)

ABM Industries Inc. (ABM) reports Q2 EPS of $0.40 versus estimates of $0.41. ABM Industries Inc. reports revenues of $869 million versus estimates of $889.17 million. Net income per diluted share increased 66.7% year over year. As a result of the slower pace of economic recovery, the company estimates that full fiscal year 2010 income from continuing operations per diluted share will be in the range of $1.15 to $1.19 and adjusted income from continuing operations per diluted share, for the same period, will be in the range of $1.33 to $1.37. "Overall, the Company delivered good financial results for the quarter," said Henrik Slipsager, president and chief executive officer, ABM Industries. "Revenues were flat as the Janitorial business in particular was still affected by the slower pace of economic recovery, which continues to pressure client spending.” He continued, “We are focused on client retention to sustain and build revenues; streamlining the Janitorial organization to strengthen sales performance, service delivery and cost controls; and we are expanding our sales pipeline. We also continue to aggressively manage cash, costs and margins to mitigate slow economic growth and maintain profitability. These combined efforts continue to yield positive results as income was up in the quarter, and adjusted EBITDA, a key measure of our performance, grew 22% year-over-year." Shares of ABM are higher in the after-hours by 0.05%.