ABM Industries stock falls after disappointing forecast

Shares of ABM Industries Inc. fell 3% after hours on Tuesday after the janitorial-services firm forecast full-year profit that was below Wall Street’s expectations and said it would “continue to face labor-related pressures in the near-term.” ABM executives said they expected fiscal 2023 adjusted earnings per share of between $3.40 and $3.60, compared with FactSet forecasts for $3.66. For its fourth quarter, ABM reported net income of $48.9 million, or 73 cents a share, compared with $34.3 million, or 50 cents a share, in the same quarter last year. Revenue rose 19% to $2 billion, helped by acquisitions and new clients in schools and colleges, compared with $1.7 billion in the prior-year quarter. Adjusted for acquisition-related and other costs, ABM earned 89 cents a share, compared with 85 cents a share in same quarter a year ago. Analysts polled by FactSet expected adjusted earnings of 88 cents a share, on revenue of $1.96 billion.

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