Aramark (ARMK) Releases Quarterly Earnings Results, Beats Expectations By $0.02 EPS

Aramark (NYSE:ARMK) released its earnings results on Tuesday, May 7th. The company reported $0.45 earnings per share for the quarter, topping the Zacks’ consensus estimate of $0.43 by $0.02, Morningstar.com reports. The firm had revenue of $4 billion for the quarter, compared to the consensus estimate of $4.01 billion. Aramark had a net margin of 3.27% and a return on equity of 17.31%. The company’s revenue was up 1.5% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.48 EPS. Aramark updated its FY 2019 guidance to $2.20-2.30 EPS and its FY19 guidance to $2.20-2.30 EPS.

Shares of NYSE:ARMK traded down $0.10 during trading on Friday, hitting $34.79. The company’s stock had a trading volume of 6,667,843 shares, compared to its average volume of 3,481,198. Aramark has a 12 month low of $25.49 and a 12 month high of $43.70. The company has a quick ratio of 0.97, a current ratio of 1.14 and a debt-to-equity ratio of 2.21. The stock has a market capitalization of $8.07 billion, a PE ratio of 17.48, a price-to-earnings-growth ratio of 1.69 and a beta of 1.10.

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, May 30th. Stockholders of record on Thursday, May 16th were paid a $0.11 dividend. This represents a $0.44 annualized dividend and a dividend yield of 1.26%. The ex-dividend date of this dividend was Wednesday, May 15th. Aramark’s dividend payout ratio (DPR) is presently 22.11%.

In other news, EVP Lynn Mckee sold 43,915 shares of the stock in a transaction that occurred on Friday, March 8th. The shares were sold at an average price of $29.58, for a total value of $1,299,005.70. The sale was disclosed in a legal filing with the SEC, which is available at the SEC website. 3.30% of the stock is owned by corporate insiders.

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Martingale Asset Management L P raised its stake in Aramark by 37.4% during the 4th quarter. Martingale Asset Management L P now owns 12,495 shares of the company’s stock worth $363,000 after acquiring an additional 3,400 shares during the period. BB&T Securities LLC grew its holdings in Aramark by 26.9% during the 4th quarter. BB&T Securities LLC now owns 89,449 shares of the company’s stock valued at $2,591,000 after buying an additional 18,949 shares in the last quarter. Levin Capital Strategies L.P. grew its holdings in Aramark by 305.6% during the 4th quarter. Levin Capital Strategies L.P. now owns 36,500 shares of the company’s stock valued at $1,057,000 after buying an additional 27,500 shares in the last quarter. Jennison Associates LLC grew its holdings in Aramark by 15.9% during the 4th quarter. Jennison Associates LLC now owns 1,339,923 shares of the company’s stock valued at $38,818,000 after buying an additional 184,083 shares in the last quarter. Finally, PNC Financial Services Group Inc. grew its holdings in Aramark by 2,467.6% during the 4th quarter. PNC Financial Services Group Inc. now owns 21,080 shares of the company’s stock valued at $609,000 after buying an additional 20,259 shares in the last quarter. Institutional investors own 97.33% of the company’s stock.

Several brokerages recently commented on ARMK. Zacks Investment Research downgraded shares of Aramark from a “buy” rating to a “hold” rating in a research report on Friday. ValuEngine raised shares of Aramark from a “sell” rating to a “hold” rating in a research report on Thursday. Morgan Stanley set a $34.00 target price on shares of Aramark and gave the company a “hold” rating in a research note on Wednesday, May 8th. Nomura restated a “neutral” rating and set a $28.00 target price (down previously from $46.00) on shares of Aramark in a research note on Monday, March 18th. Finally, Goldman Sachs Group cut shares of Aramark from a “buy” rating to a “neutral” rating in a research note on Monday, February 11th. Six equities research analysts have rated the stock with a hold rating and eight have assigned a buy rating to the company. The company presently has an average rating of “Buy” and a consensus price target of $40.25.

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Aramark Company Profile

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.

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Earnings History for Aramark (NYSE:ARMK)

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