ABM Industries tumbles 20% on narrow 2008 guidance
ABM Industries Inc. (NYSE:ABM) tumbled by 20% this morning after the company issued a narrowed fiscal 2008 guidance and said that it had earned less in its fiscal third quarter than at least one analyst was projecting.
For the three months ended July 31, the New York-based facility services contractor earned $16.4 million, or $0.32 per share, up from $12 million, or $0.24 per share, in the year-ago quarter. One analyst polled by Thomson First Call was expecting the company to earn $0.39 per share for the three-month period.
In a statement issued after the market closed on Thursday, ABM also narrowed its fiscal 2008 guidance of net income from continuing operations to be between $1.10 to $1.15, compared with analysts' expectations of $1.25. The firm cited a general decline in discretionary spending in some customer sectors and regions for the decision.
By late morning, the stock is at $20.83, down $5.08 from Thursday's close. More than 538,000 shares have changed hands compared with a three-month average volume of 268,275 shares. The stock has traded as low as $18.13 and as high as $27.47 in the past year.
For detailed price information and news stories on ABM Industries, click ABM.
