Shares of Aramark (NYSE: ARMK) tumbled 6.65% in pre-market trading on Monday following the release of its fourth-quarter fiscal 2025 earnings report, which fell short of analyst expectations on both revenue and earnings per share.
The food service, facilities, and uniform provider reported quarterly revenue of $5.05 billion, missing the analyst consensus estimate of $5.16 billion by 2.24%. While this represents a 14.29% increase from the same period last year, it wasn't enough to meet market expectations. Additionally, Aramark's adjusted earnings per share came in at $0.57, falling short of the $0.65 forecast by analysts and marking a 12.71% miss.
Despite the disappointing results, Aramark's CEO highlighted positive aspects of the company's performance, including substantial new business wins and high retention levels that drove the 14% revenue growth. The company also benefited from an extra week in the fiscal year, which contributed an estimated 7% to Q4 revenue. Looking ahead, Aramark provided guidance for fiscal 2026, projecting adjusted EPS between $2.18 and $2.28, and revenue in the range of $19.55 billion to $19.95 billion. The company also announced a 14% increase in its quarterly dividend and the repurchase of over 4 million shares, signaling confidence in its long-term prospects despite the short-term setback.
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