Aramark tops revenue expectations as profit matches, and stock slips

Shares of Aramark (ARMK) slipped 0.1% in premarket trading Tuesday, after the food and facilities company matched fiscal fourth-quarter profit expectations but beat revenue forecasts. Net income for the quarter to Sept. 29 jumped to $205.4 million, or 78 cents a share, from $75.8 million, or 29 cents a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share of 64 cents matched the FactSet consensus. Revenue grew 11.6% to $4.90 billion to beat the FactSet consensus of $4.79 billion, as new business and raised priced helped fuel growth. The company, which completed the spinoff of its uniform business on Sept. 30, declared a post-spinoff dividend of 9.5 cents a share, with shareholders of record on Nov. 28 receiving the dividend payment on Dec. 8. For fiscal 2024, the company expects adjusted EPS growth of 25% to 35% over a post-spinoff fiscal 2023 EPS of $1.16. That implies 2024 EPS of $1.45 to $1.57, compared with the current FactSet consensus of $1.62. The stock has gained 3.6% over the past three months through Monday while the S&P 500 has slipped 1.7%.

-Tomi Kilgore

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11-14-23 0648ET

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