Stock Track | Aramark Plunges 6.65% Pre-market on Q4 Revenue and Earnings Miss

Stock Track11-17

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.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment