These are top 10 stocks traded on the Robinhood UK platform in July
PHILADELPHIA - Aramark (NYSE:ARMK) reported lower-than-expected first quarter earnings and revenue on Tuesday, sending shares down in early trading.
The food service and facilities management company posted adjusted earnings per share of $0.39, missing analyst estimates of $0.48. Revenue came in at $4.55 billion, below the consensus forecast of $4.62 billion.
Despite the earnings miss, Aramark’s Q1 revenue grew 3% year-over-year, with organic revenue up 5%. The company highlighted record adjusted operating income for a first quarter in its Global Food and Support Services segment.
"We are off to a great start in fiscal ’25 as we remain committed to our strategic priorities," said CEO John Zillmer. He noted the company is focused on driving profitable top-line growth, accelerating adjusted operating income growth, and leveraging its capital structure.
Aramark reaffirmed its full-year fiscal 2025 outlook, projecting organic revenue growth of 7.5% to 9.5% and adjusted earnings per share growth of 23% to 28% compared to fiscal 2024.
The company reported its highest revenue for any quarter in Global FSS history, with foodservice revenue up 5% and organic foodservice revenue increasing 6%. Operating income jumped 30% year-over-year to $217 million, while adjusted operating income rose 13% to $258 million.
Aramark also noted it has commenced share repurchases as part of its previously announced $500 million buyback program. The company repurchased over 645,000 shares for approximately $25 million to date.
While the quarterly results fell short of expectations, Aramark remains optimistic about its growth trajectory, citing a significant new business pipeline and high client retention rates above 95%.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.