EmailABM industries (ABM $19.27 -0.57) reported third quarter earnings of $0.51 per share, excluding non-recurring items, $0.04 better than the Capital IQ consensus of $0.47.
Revenues rose 23.8% year/year to $1.08 billion versus the $1.1 billion consensus.
The company issued downside guidance for fiscal year 2011 with EPS of $1.32-1.42, excluding non-recurring items, versus the $1.45 consensus.
"Through the first two quarters, our performance was essentially in line with our expectations. During the third quarter, it became clear that the U.S. economy will be weaker than anticipated, impacting our clients and resulting in further price compression, particularly in our Janitorial business. Further, as we have previously discussed, the delay in passing federal appropriations had an adverse impact on the timing of awarding contracts to Linc Government Services, which we expect to shift the start of projects from fiscal year 2011 to fiscal year 2012. Taken together, along with higher unemployment insurance expense and fuel and related costs, we are lowering our expectations for the fourth quarter."
