Aramark (NYSE:ARMK) Earnings Report Overview

  • Earnings Per Share (EPS) of $0.54, slightly above the estimated $0.53.
  • Revenue of $4.42 billion, below the expected $4.66 billion, marking a 9.9% decline year-over-year.
  • Financial metrics reveal a Price-to-Earnings (P/E) ratio of 38.22 and a debt-to-equity ratio of 1.83.

Aramark (NYSE:ARMK) is a global leader in food, facilities, and uniform services. The company operates in various sectors, including education, healthcare, and sports, providing essential services to a wide range of clients. Aramark competes with companies like Compass Group and Sodexo in the service industry.

On November 11, 2024, Aramark reported earnings per share (EPS) of $0.54, slightly above the estimated $0.53. Despite this positive earnings performance, the company generated revenue of $4.42 billion, which was below the expected $4.66 billion. This revenue figure also represents a 9.9% decline compared to the same period last year, as highlighted by Zacks.

The company's EPS of $0.54 met the consensus estimate, indicating stability in earnings performance. However, the revenue shortfall resulted in a negative surprise of 0.51%. This mixed result has led analysts to adjust their forecasts, reflecting a more optimistic outlook for Aramark's future financial performance.

Aramark's financial metrics provide further insight into its valuation. The company has a price-to-earnings (P/E) ratio of 38.22, suggesting that investors are willing to pay a premium for its earnings. The price-to-sales ratio of 0.58 and enterprise value to sales ratio of 0.86 indicate how the market values the company's sales and overall valuation.

The company's debt-to-equity ratio of 1.83 highlights its reliance on debt financing, while a current ratio of 0.81 suggests potential liquidity challenges. Despite these factors, Aramark's earnings yield of 2.62% offers a perspective on the return on investment, providing a comprehensive view of its financial health.

Symbol Price %chg
JTPE.JK 246 0
ASGR.JK 905 -0.55
7911.T 3925 0.03
MFMI.JK 1300 0
ARMK Ratings Summary
ARMK Quant Ranking
Related Analysis

Aramark (NYSE:ARMK) Quarterly Earnings Preview

Aramark (NYSE:ARMK) is a global leader in providing food, facilities, and uniform services. The company operates across various sectors, including education, healthcare, and business services. As a major player in the service industry, Aramark competes with companies like Compass Group and Sodexo. The company's financial health and performance are closely monitored by investors and analysts alike.

On February 4, 2025, Aramark is set to release its quarterly earnings, with Wall Street analysts estimating an earnings per share (EPS) of $0.48 and projected revenue of approximately $4.61 billion. This anticipated year-over-year increase in earnings is driven by higher revenues for the quarter ending December 2024. The market is keenly observing these expectations, as the actual results could significantly impact Aramark's stock price.

If Aramark surpasses these estimates, the stock may experience an upward movement. Conversely, a miss on these expectations could lead to a decline in stock value. The management's discussion during the earnings call will be crucial in determining the sustainability of any immediate price changes and future earnings projections. As highlighted by Zacks, Aramark is positioned for a potential positive EPS surprise.

Aramark's financial metrics provide insight into its market valuation. The company's price-to-earnings (P/E) ratio is approximately 39.11, indicating how much investors are willing to pay per dollar of earnings. The price-to-sales ratio stands at about 0.59, suggesting the market values its sales at this multiple. The enterprise value to sales ratio is around 0.87, reflecting the company's total valuation relative to its sales.

The enterprise value to operating cash flow ratio is approximately 20.92, showing the relationship between its enterprise value and cash flow from operations. The earnings yield is about 2.56%, providing insight into the return on investment for shareholders. Aramark's debt-to-equity ratio is approximately 1.83, indicating the proportion of debt used to finance the company's assets relative to equity. Lastly, the current ratio is around 0.81, suggesting the company's ability to cover its short-term liabilities with its short-term assets.

Aramark (NYSE:ARMK) Quarterly Earnings Preview

Aramark (NYSE:ARMK) is a global leader in providing food, facilities, and uniform services. The company operates across various sectors, including education, healthcare, and business services. As a major player in the service industry, Aramark competes with companies like Compass Group and Sodexo. The company's financial health and performance are closely monitored by investors and analysts alike.

On February 4, 2025, Aramark is set to release its quarterly earnings, with Wall Street analysts estimating an earnings per share (EPS) of $0.48 and projected revenue of approximately $4.61 billion. This anticipated year-over-year increase in earnings is driven by higher revenues for the quarter ending December 2024. The market is keenly observing these expectations, as the actual results could significantly impact Aramark's stock price.

If Aramark surpasses these estimates, the stock may experience an upward movement. Conversely, a miss on these expectations could lead to a decline in stock value. The management's discussion during the earnings call will be crucial in determining the sustainability of any immediate price changes and future earnings projections. As highlighted by Zacks, Aramark is positioned for a potential positive EPS surprise.

Aramark's financial metrics provide insight into its market valuation. The company's price-to-earnings (P/E) ratio is approximately 39.11, indicating how much investors are willing to pay per dollar of earnings. The price-to-sales ratio stands at about 0.59, suggesting the market values its sales at this multiple. The enterprise value to sales ratio is around 0.87, reflecting the company's total valuation relative to its sales.

The enterprise value to operating cash flow ratio is approximately 20.92, showing the relationship between its enterprise value and cash flow from operations. The earnings yield is about 2.56%, providing insight into the return on investment for shareholders. Aramark's debt-to-equity ratio is approximately 1.83, indicating the proportion of debt used to finance the company's assets relative to equity. Lastly, the current ratio is around 0.81, suggesting the company's ability to cover its short-term liabilities with its short-term assets.

Aramark (NYSE:ARMK) Earnings Report Overview

  • Earnings Per Share (EPS) of $0.54, slightly above the estimated $0.53.
  • Revenue of $4.42 billion, below the expected $4.66 billion, marking a 9.9% decline year-over-year.
  • Financial metrics reveal a Price-to-Earnings (P/E) ratio of 38.22 and a debt-to-equity ratio of 1.83.

Aramark (NYSE:ARMK) is a global leader in food, facilities, and uniform services. The company operates in various sectors, including education, healthcare, and sports, providing essential services to a wide range of clients. Aramark competes with companies like Compass Group and Sodexo in the service industry.

On November 11, 2024, Aramark reported earnings per share (EPS) of $0.54, slightly above the estimated $0.53. Despite this positive earnings performance, the company generated revenue of $4.42 billion, which was below the expected $4.66 billion. This revenue figure also represents a 9.9% decline compared to the same period last year, as highlighted by Zacks.

The company's EPS of $0.54 met the consensus estimate, indicating stability in earnings performance. However, the revenue shortfall resulted in a negative surprise of 0.51%. This mixed result has led analysts to adjust their forecasts, reflecting a more optimistic outlook for Aramark's future financial performance.

Aramark's financial metrics provide further insight into its valuation. The company has a price-to-earnings (P/E) ratio of 38.22, suggesting that investors are willing to pay a premium for its earnings. The price-to-sales ratio of 0.58 and enterprise value to sales ratio of 0.86 indicate how the market values the company's sales and overall valuation.

The company's debt-to-equity ratio of 1.83 highlights its reliance on debt financing, while a current ratio of 0.81 suggests potential liquidity challenges. Despite these factors, Aramark's earnings yield of 2.62% offers a perspective on the return on investment, providing a comprehensive view of its financial health.

ARAMARK’s Price Target Raised at Jefferies

Jefferies analysts increased their price target for ARAMARK (NYSE:ARMK) to $37 from $35, maintaining a Buy rating on the stock.

The analysts adjusted fiscal 2024 estimates to account for higher-than-expected foreign exchange headwinds but remain optimistic about the company's prospects.

The analysts highlighted attractive organic growth driven by strong outsourcing trends, favorable pricing, and continued new business wins.

The analysts also anticipate that ARAMARK's operating income margin will improve as new business matures, inflation eases, and cost-saving measures take effect.

ARAMARK’s Price Target Raised at Jefferies

Jefferies analysts increased their price target for ARAMARK (NYSE:ARMK) to $37 from $35, maintaining a Buy rating on the stock.

The analysts adjusted fiscal 2024 estimates to account for higher-than-expected foreign exchange headwinds but remain optimistic about the company's prospects.

The analysts highlighted attractive organic growth driven by strong outsourcing trends, favorable pricing, and continued new business wins.

The analysts also anticipate that ARAMARK's operating income margin will improve as new business matures, inflation eases, and cost-saving measures take effect.

Aramark Shares Gain 8% Since Q2 Beat

Aramark Services (NYSE:ARMK) shares rose 8% since the company reported its Q2 earnings results, with EPS coming in at $0.28, better than the Street estimate of $0.26. Revenue was $4.6 billion, beating the Street estimate of $4.39 billion.

Furthermore, there was a wide-ranging increase in revenue throughout the company's portfolio and geographical locations. With regards to the planned Uniform spin-off, the company maintains its expectation of completing the transaction by fiscal year 2023.

Lastly, the company maintained its commitment to deleveraging the balance sheet and expects leverage to be below 4.0x by fiscal year-end aided by free cash flow guidance of approximately $300 million and earnings growth.