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NEW YORK - On Tuesday, Aramark (NYSE:ARMK) reported third-quarter revenue that missed analyst expectations, despite posting record quarterly revenue for its Global FSS operations.
The food service provider's shares fell 3.97% in pre-market trading after the announcement.
The company reported third-quarter revenue of $4.63 billion, up 6% YoY but below the consensus estimate of $4.66 billion. Adjusted earnings per share came in at $0.40, meeting analyst expectations, representing a 29% increase from the same period last year.
Aramark's stock dropped 3.97% following the results as investors reacted to the revenue shortfall, even as the company highlighted strong operational performance.
"We've achieved a number of significant milestones at the Company since last reporting earnings, including being recently awarded one of the largest new client wins in our history, as well as experiencing record client retention levels now surpassing 97%," said John Zillmer, Aramark's Chief Executive Officer.
The company's FSS United States segment posted revenue of $3.25 billion, up 3% YoY, while FSS International revenue grew 12% to $1.38 billion. Operating income increased 13% to $183 million, with adjusted operating income rising 19% to $230 million.
Aramark maintained its full-year fiscal 2025 outlook, projecting organic revenue growth of 7.5% to 9.5%, adjusted operating income growth of 15% to 18%, and adjusted EPS growth of 23% to 28%.
The company also noted that its net new business performance through the first three quarters puts it on pace to achieve the high end of its 4% to 5% target, with potential to exceed it.
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