ARMK - Aramark trades higher after beating quarterly estimates; AUS spin-off imminent

2023-08-08 12:56:49 ET

Aramark ( NYSE: ARMK ) rose 4.8% on Tuesday after reporting quarterly earnings.

Fiscal third-quarter EPS of $0.36 beat the average analyst estimate by $0.02, while revenue of $4.75B beat by $160M.

“The company anticipates improved profitability in the near- and longer-term,” ARMK said in a statement.

"Aramark's third quarter results reflect our continued focus on profitable growth across the organization," Chief Executive Officer John Zillmer said in a statement.

"With signs of inflation moderating, and our pricing actions taking hold, we are increasingly confident in the ramp in profitability as we finish the fiscal year.”

Aramark ( ARMK ) today also announced the board of directors for Aramark Uniform Services ( AUS ), the independent public company that will be formed following a spin-off.

The transaction is expected to be completed at the end of the company’s fiscal year and is intended to be tax-free to Aramark ( ARMK ) and its stockholders.

ARMK has five Strong Buy ratings from Wall Street analysts, two Buys, eight Holds and one Sell.

ARMK is down 3.7% so far this year and up 13% in the past 12 months.

More on Aramark:

• Aramark Non-GAAP EPS of $0.36 beats by $0.02, revenue of $4.75B beats by $160M
• Aramark - The Investment Finally Pays Off, But Future Is More Difficult (Rating Downgrade)
• Aramark declares $0.11 dividend

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