ADT Corp (ADT): Why ABM Industries, Inc. (ABM) Earnings Should Keep Growing

But ABM also has its fingers in a number of other businesses. ABM recently won a contract from the U.S. Navy to provide a wide range of operational services for a naval air station in Sicily. Moreover, ABM’s health unit formed a partnership with Memorial Healthcare System, the nation’s second-largest public health-care system. The two companies will coordinate new medical technology and help integrate staffing, both in-house and from outside consultants, to manage costs more effectively.

ABM’s integrated approach gives it a competitive advantage over more focused rivals. For instance, ADT Corp (NYSE:ADT) has managed to make a profitable business from its security offerings, serving both the residential and commercial markets and building up its portfolio of customers with smart acquisitions. Similarly, Standard Parking competes with ABM in the parking-lot business and has won a number of lucrative contracts lately, including ones covering the Washington Redskins’ stadium and the recent soccer Gold Cup tournament in more than a dozen U.S. cities. But for clients seeking an integrated solution to all of their needs, ABM has the advantage of being a one-stop shop.

In the ABM Industries, Inc. (NYSE:ABM) earnings report, watch for the company to discuss more about its recent acquisition of Blackjack Promotions. If the purchase can help the company boost its presence in Europe, it should provide another source of growth for ABM going forward.

The article Why ABM Earnings Should Keep Growing originally appeared on Fool.com and is written by Dan Caplinger.

Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter @DanCaplinger. The Motley Fool has no position in any of the stocks mentioned.

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