Aramark (NYSE:ARMK) Releases FY25 Earnings Guidance

Aramark (NYSE:ARMK - Get Free Report) updated its FY25 earnings guidance on Tuesday. The company provided earnings per share guidance of $1.91-1.98 for the period, compared to the consensus earnings per share estimate of $1.93. Aramark also updated its FY 2025 guidance to 1.910-1.980 EPS.

Aramark Stock Up 0.4 %

Aramark stock traded up $0.13 during mid-day trading on Thursday, hitting $38.00. 1,211,115 shares of the company's stock were exchanged, compared to its average volume of 1,967,910. Aramark has a 1-year low of $28.51 and a 1-year high of $42.49. The stock has a 50 day moving average of $38.67 and a two-hundred day moving average of $37.70. The stock has a market cap of $10.07 billion, a P/E ratio of 38.38 and a beta of 1.64. The company has a current ratio of 0.81, a quick ratio of 0.72 and a debt-to-equity ratio of 1.42.

Aramark (NYSE:ARMK - Get Free Report) last posted its earnings results on Tuesday, February 4th. The company reported $0.51 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.48 by $0.03. Aramark had a net margin of 1.51% and a return on equity of 14.06%. The business had revenue of $4.55 billion for the quarter, compared to analyst estimates of $4.61 billion. During the same period last year, the business posted $0.41 EPS. Aramark's revenue was up 3.3% compared to the same quarter last year. As a group, analysts anticipate that Aramark will post 1.93 EPS for the current fiscal year.

Aramark Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, February 24th. Investors of record on Monday, February 10th will be given a dividend of $0.105 per share. The ex-dividend date of this dividend is Monday, February 10th. This is an increase from Aramark's previous quarterly dividend of $0.00. This represents a $0.42 dividend on an annualized basis and a yield of 1.11%. Aramark's dividend payout ratio (DPR) is 42.42%.

Wall Street Analyst Weigh In

A number of equities research analysts have weighed in on ARMK shares. Morgan Stanley lifted their price target on shares of Aramark from $40.00 to $43.00 and gave the stock an "equal weight" rating in a research note on Thursday, December 12th. StockNews.com cut shares of Aramark from a "buy" rating to a "hold" rating in a research note on Tuesday, January 7th. Stifel Nicolaus lifted their price objective on Aramark from $43.00 to $45.00 and gave the company a "buy" rating in a report on Tuesday, November 12th. Royal Bank of Canada reissued an "outperform" rating and issued a $47.00 target price on shares of Aramark in a report on Thursday. Finally, Truist Financial boosted their price target on Aramark from $42.00 to $46.00 and gave the company a "buy" rating in a research note on Tuesday, November 12th. Three equities research analysts have rated the stock with a hold rating and nine have given a buy rating to the stock. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $43.00.

About Aramark

Aramark provides food and facilities services to education, healthcare, business and industry, sports, leisure, and corrections clients in the United States and internationally. It operates through two segments, Food and Support Services United States, and Food and Support Services International. The company offers food-related managed services, including dining, catering, food service management, and convenience-oriented retail services; non-clinical food and food-related support services, such as patient food and nutrition, retail food, environmental services, and procurement services; and plant operations and maintenance, custodial/housekeeping, energy management, grounds keeping, and capital project management services.