Aramark (ARMK) Expected to Post Quarterly Sales of $4.02 Billion

Brokerages predict that Aramark (NYSE:ARMK) will report sales of $4.02 billion for the current fiscal quarter, according to Zacks. Eleven analysts have provided estimates for Aramark’s earnings. The lowest sales estimate is $3.98 billion and the highest is $4.08 billion. Aramark posted sales of $3.97 billion in the same quarter last year, which suggests a positive year over year growth rate of 1.3%. The company is expected to issue its next quarterly earnings results on Tuesday, August 6th.

According to Zacks, analysts expect that Aramark will report full year sales of $16.23 billion for the current fiscal year, with estimates ranging from $16.17 billion to $16.32 billion. For the next financial year, analysts anticipate that the business will post sales of $16.78 billion, with estimates ranging from $16.58 billion to $17.17 billion. Zacks’ sales averages are a mean average based on a survey of research analysts that follow Aramark.

Aramark (NYSE:ARMK) last announced its earnings results on Tuesday, May 7th. The company reported $0.45 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.43 by $0.02. The firm had revenue of $4 billion during the quarter, compared to analysts’ expectations of $4.01 billion. Aramark had a return on equity of 17.31% and a net margin of 3.27%. The company’s revenue was up 1.5% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.48 earnings per share.

A number of research analysts have recently commented on the company. Zacks Investment Research upgraded Aramark from a “sell” rating to a “hold” rating in a report on Thursday. Morgan Stanley set a $34.00 price target on Aramark and gave the stock a “hold” rating in a report on Wednesday, May 8th. Nomura reiterated a “neutral” rating and set a $28.00 price target (down from $46.00) on shares of Aramark in a report on Monday, March 18th. Credit Suisse Group cut their price target on Aramark from $53.00 to $44.00 and set an “outperform” rating for the company in a report on Wednesday, February 6th. Finally, Goldman Sachs Group lowered Aramark from a “buy” rating to a “neutral” rating in a report on Monday, February 11th. One equities research analyst has rated the stock with a sell rating, five have given a hold rating and eight have issued a buy rating to the stock. The company currently has an average rating of “Buy” and a consensus price target of $40.17.

Aramark stock traded up $0.13 during trading hours on Tuesday, reaching $31.68. 72,156 shares of the company were exchanged, compared to its average volume of 4,136,257. The stock has a market capitalization of $7.85 billion, a P/E ratio of 15.91, a PEG ratio of 1.65 and a beta of 1.10. The company has a quick ratio of 0.97, a current ratio of 1.14 and a debt-to-equity ratio of 2.21. Aramark has a 12 month low of $25.49 and a 12 month high of $43.70.

The firm also recently declared a quarterly dividend, which will be paid on Thursday, May 30th. Stockholders of record on Thursday, May 16th will be issued a dividend of $0.11 per share. The ex-dividend date of this dividend is Wednesday, May 15th. This represents a $0.44 dividend on an annualized basis and a dividend yield of 1.39%. Aramark’s dividend payout ratio (DPR) is presently 22.11%.

In related news, EVP Lynn Mckee sold 43,915 shares of the company’s stock in a transaction on Friday, March 8th. The stock was sold at an average price of $29.58, for a total value of $1,299,005.70. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Corporate insiders own 3.30% of the company’s stock.

Several hedge funds and other institutional investors have recently modified their holdings of the stock. BlueMountain Capital Management LLC acquired a new position in shares of Aramark in the first quarter valued at $2,991,000. Ladenburg Thalmann Financial Services Inc. raised its stake in shares of Aramark by 26.8% in the first quarter. Ladenburg Thalmann Financial Services Inc. now owns 6,384 shares of the company’s stock valued at $190,000 after purchasing an additional 1,350 shares in the last quarter. Massmutual Trust Co. FSB ADV raised its stake in shares of Aramark by 8,264.6% in the first quarter. Massmutual Trust Co. FSB ADV now owns 17,733 shares of the company’s stock valued at $524,000 after purchasing an additional 17,521 shares in the last quarter. Morgan Stanley raised its stake in shares of Aramark by 41.7% in the first quarter. Morgan Stanley now owns 697,301 shares of the company’s stock valued at $20,606,000 after purchasing an additional 205,279 shares in the last quarter. Finally, M&T Bank Corp raised its stake in shares of Aramark by 6.0% in the first quarter. M&T Bank Corp now owns 12,883 shares of the company’s stock valued at $379,000 after purchasing an additional 730 shares in the last quarter.

About Aramark

Aramark provides food, facilities management, and uniform services to education, healthcare, business and industry, sports, leisure, and corrections clients in North America and internationally. It operates in three segments: Food and Support Services United States, Food and Support Services International, and Uniform and Career Apparel.

Featured Article: Why does a company issue an IPO?

Get a free copy of the Zacks research report on Aramark (ARMK)

For more information about research offerings from Zacks Investment Research, visit Zacks.com

Receive News & Ratings for Aramark Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Aramark and related companies with MarketBeat.com's FREE daily email newsletter.