Aramark (NYSE:ARMK) Releases FY25 Earnings Guidance

Aramark (NYSE:ARMK) issued an update on its FY25 earnings guidance on Tuesday morning. The company provided EPS guidance of $1.91-1.98 for the period, compared to the consensus EPS estimate of $1.93. Aramark also updated its FY 2025 guidance to 1.910-1.980 EPS.

Aramark Trading Up 1.6 %

ARMK stock traded up $0.59 during midday trading on Wednesday, reaching $38.25. 753,064 shares of the company traded hands, compared to its average volume of 1,908,260. The business has a 50 day moving average of $38.73 and a 200-day moving average of $37.70. Aramark has a 52-week low of $28.51 and a 52-week high of $42.49. The firm has a market capitalization of $10.13 billion, a price-to-earnings ratio of 38.61 and a beta of 1.64. The company has a debt-to-equity ratio of 1.42, a quick ratio of 0.72 and a current ratio of 0.81.

Aramark (NYSE:ARMK) last issued its quarterly earnings results on Tuesday, February 4th. The company reported $0.51 earnings per share for the quarter, topping the consensus estimate of $0.48 by $0.03. Aramark had a return on equity of 14.06% and a net margin of 1.51%. The firm had revenue of $4.55 billion for the quarter, compared to the consensus estimate of $4.61 billion. During the same period in the prior year, the business posted $0.41 earnings per share. The company’s revenue for the quarter was up 3.3% on a year-over-year basis. As a group, sell-side analysts expect that Aramark will post 1.93 earnings per share for the current fiscal year.

Aramark Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, February 24th. Investors of record on Monday, February 10th will be issued a dividend of $0.105 per share. This represents a $0.42 annualized dividend and a yield of 1.10%. This is a positive change from Aramark’s previous quarterly dividend of $0.00. The ex-dividend date of this dividend is Monday, February 10th. Aramark’s dividend payout ratio (DPR) is presently 42.42%.

Analyst Ratings Changes

A number of equities research analysts recently commented on ARMK shares. StockNews.com cut shares of Aramark from a “buy” rating to a “hold” rating in a research report on Tuesday, January 7th. Truist Financial lifted their price objective on shares of Aramark from $42.00 to $46.00 and gave the company a “buy” rating in a research note on Tuesday, November 12th. Stifel Nicolaus raised their target price on Aramark from $43.00 to $45.00 and gave the stock a “buy” rating in a report on Tuesday, November 12th. JPMorgan Chase & Co. lifted their target price on shares of Aramark from $41.00 to $45.00 and gave the company an “overweight” rating in a report on Tuesday, November 12th. Finally, UBS Group increased their price target on shares of Aramark from $40.00 to $44.00 and gave the stock a “buy” rating in a report on Tuesday, October 8th. Three investment analysts have rated the stock with a hold rating and nine have issued a buy rating to the company. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $42.59.

About Aramark

Aramark provides food and facilities services to education, healthcare, business and industry, sports, leisure, and corrections clients in the United States and internationally. It operates through two segments, Food and Support Services United States, and Food and Support Services International. The company offers food-related managed services, including dining, catering, food service management, and convenience-oriented retail services; non-clinical food and food-related support services, such as patient food and nutrition, retail food, environmental services, and procurement services; and plant operations and maintenance, custodial/housekeeping, energy management, grounds keeping, and capital project management services.