Shareholders might have noticed that ABM Industries Incorporated (NYSE:ABM) filed its yearly result this time last week. The early response was not positive, with shares down 9.6% to US$42.17 in the past week. 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. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there’s been a strong change in the company’s prospects, or if it’s business as usual. With this in mind, we’ve gathered the latest statutory forecasts to see what the analysts are expecting for next year.
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 an okay 4.7% improvement in revenue compared to the last 12 months. Per-share earnings are expected to shoot up 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. There’s another way to think about price targets though, and that’s to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. 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. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await ABM Industries shareholders.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. 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…
Read More: Here’s What Analysts Are Forecasting Now
