Earnings Miss: ABM Industries Incorporated Missed EPS By 15% And Analysts Are Revising Their Forecasts

ABM Industries Incorporated (NYSE:ABM) shareholders are probably feeling a little disappointed, since its shares fell 9.6% to US$42.17 in the week after its latest yearly results. Revenues were in line with forecasts, at US$8.7b, although statutory earnings per share came in 15% below what the analysts expected, at US$2.59 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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After the latest results, the seven analysts covering ABM Industries are now predicting revenues of US$9.15b in 2026. If met, this would reflect a satisfactory 4.7% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to jump 39% to US$3.68. Before this earnings report, the analysts had been forecasting revenues of US$9.00b and earnings per share (EPS) of US$3.74 in 2026. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

View our latest analysis for ABM Industries

It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$56.33. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic ABM Industries analyst has a price target of US$68.00 per share, while the most pessimistic values it at US$51.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the ABM Industries' past performance and to peers in the same industry. It's pretty clear that there is an expectation that ABM Industries' revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 4.7% growth on an annualised basis. This is compared to a historical growth rate of 8.2% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 5.9% annually. Factoring in the forecast slowdown in growth, it seems obvious that ABM Industries is also expected to grow slower than other industry participants.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that ABM Industries' revenue is expected to 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple ABM Industries analysts - going out to 2028, and you can see them free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with ABM Industries .

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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.