Why ABM Industries Stock Sagged by Almost 10% Today
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By Eric Volkman – Dec 18, 2025 at 7:51PM ESTKey PointsThe industrial services specialist was hit by two negative analyst moves.This closely followed the release of its fourth-quarter and full-year fiscal 2025 results.These 10 Stocks Could Mint the Next Wave of Millionaires ›NYSE: UBSUBSMarket Cap$140BToday's Changeangle-down(2.81%) $1.26Current Price$46.10Price as of December 18, 2025 at 4:00 PM ETSince mid-week, analysts and investors alike have been bearish on the company's recent performance.Dividend King ABM Industries (ABM 9.91%) wasn't looking so regal on Thursday. Following two bearish post-earnings analyst moves, investors aggressively sold the stock, resulting in a nearly 10% decline in value. Fourth-quarter flop Baird's Andrew Wittmann downgraded his recommendation on ABM. He now feels the industrial services company is a neutral, rather than a buy. He also reduced his price target to $51 per share from $55. Image source: Getty Images. Compounding that, his peer Joshua Chan from UBS sliced his fair value assessment, trimming it from $54 per share to $52. However, he maintained his neutral recommendation. Neither adjustment should have come as a surprise to the market. Wednesday morning, ABM published its fourth quarter of fiscal 2025 results, and they weren't particularly encouraging. This, despite the company setting a new record for revenue of $2.3 billion, an increase of more than 5% year-over-year. Net income not in accordance with generally accepted accounting principles (GAAP) came in at just under $55 million ($0.88 per share), down slightly from the year-ago quarter. Advertisement With those numbers, ABM slightly exceeded the consensus analyst estimate of $2.28 billion. However, it whiffed badly on the bottom line, as those pundits were collectively modeling a non-GAAP (adjusted) net profit of $1.09. Management also proffered guidance for the entirely of its new fiscal year. It believes its revenue growth will range from 3% to 4% over the 2025 result, and adjusted net income is expected to be between $3.85 and $4.15, representing an improvement over the $3.44 of fiscal 2025. ExpandNYSE: ABMAbm IndustriesToday's Change(-9.91%) $-4.78Current Price$43.47Key Data PointsMarket Cap$3.0BDay's Range$42.16 - $47.6752wk Range$40.00 - $54.90Volume2.6MAvg Vol535KGross Margin11.86%Dividend Yield2.20% Over-reaction While that gap between expected and actual earnings is wide, I feel investors are punishing ABM unnecessarily. The company remains habitually profitable, and at this stage in its existence, it isn't easy to achieve revenue growth. On top of that, as a Dividend King (i.e., a company that has declared dividend raises at least once annually for a minimum of 50 years running), its quarterly dividend is always on the rise, to the point where it yields a respectable 2.4%. I'd consider this dip in the share price to be a bargain-buying opportunity, then. About the AuthorEric Volkman is a contributing Motley Fool finance and stock market analyst. Previously, Eric was an equities analyst at European investment bank Raiffeisen Capital and Investment. He’s also been a freelance finance writer since 1995. He studied at Susquehanna University.TMFVolkmanStocks MentionedUBSNYSE: UBS$46.10 (+0.03%) $+1.26Abm IndustriesNYSE: ABM$43.47 (0.10%) $4.78*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.Advertisement