Fed’s Powell opens door to potential rate cuts at Jackson Hole
WILMINGTON - UniFirst Corporation (NYSE:UNF) reported better-than-expected third-quarter earnings on Tuesday, with adjusted earnings per share of $2.13, exceeding analyst estimates of $2.10, while revenue slightly missed forecasts.
The company’s shares rose 0.64% in pre-market trading following the announcement.
The uniform rental and facility services provider posted revenue of $610.8 million for the quarter ended May 31, representing a 1.2% increase compared to the same period last year but falling short of the $614.5 million analysts had expected. Net income increased 4.3% to $39.7 million, up from $38.1 million in the prior year.
UniFirst’s Core Laundry Operations segment, which accounts for the bulk of the company’s business, saw revenue increase by 0.9% to $533.2 million, with organic growth of 1.1%. The Specialty Garments segment revenue grew 0.5% to $47.8 million, while the First Aid segment showed the strongest growth at 9.1%.
"The results for our third quarter were largely in line with our expectations," said Steven Sintros, UniFirst President and Chief Executive Officer. "It is rewarding to see our recent investments beginning to yield measurable returns, evidenced by gross margin improvement and more effective execution across the business."
The company raised its full-year earnings guidance to a range of $7.60 to $8.00 per share, up from its previous forecast, while maintaining its revenue outlook between $2.422 billion and $2.432 billion. The improved earnings guidance reflects lower-than-expected costs related to the company’s key initiatives, which are now projected to be approximately $7.5 million for fiscal 2025.
UniFirst’s quarterly results benefited from lower merchandise and production costs as a percentage of revenue, though these gains were offset by higher healthcare claims expenses and approximately $5.7 million in advisory and legal costs. The company also recorded a $2.8 million gain from the sale of a non-operating property during the quarter.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.