Free Research Report as Aramark’s Revenue Grew 3% and EPS Surged 36.4%

LONDON, UK / ACCESSWIRE / December 27, 2017 / Active-Investors.com has just released a free earnings report on Aramark (NYSE: ARMK). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=ARMK. The Company posted its financial results on November 14, 2017, for the fourth quarter of the fiscal year 2017. Register today and get access to over 1000 Free Research Reports by joining our site below:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Aramark most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

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Earnings Highlights and Summary

For the three months ended September 29, 2017, Aramark’s revenue increased 3%, or 2% on an organic basis, to $3.65 billion from $3.54 billion in Q4 FY16. The Company’s revenue numbers were below analysts’ expectations of $3.70 billion.

During FY17, the Company’s revenue increased 1% to $14.60 billion from $14.42 billion in FY16.

During Q4 FY17, Aramark’s gross profit increased 8% to $423.04 million from $391.53 million in the same period of last year. For the reported quarter, the Company’s gross margin increased 60 basis points to 11.6% of revenue from 11% of revenue in Q4 FY16.

During FY17, the Company’s covenant adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) increased 5.9% to $1.43 billion from $1.35 billion in FY16. During FY17, the Company’s covenant adjusted EBITDA margin increased 40 basis points to 9.8% of revenue from 9.4% of revenue in FY16.

During Q4 FY17, Aramark’s operating income increased 14.2% to $217.90 million from $190.76 million in the comparable period of last year. For the reported quarter, the Company’s operating margin increased 70 basis points to 6.1% of revenue from 5.4% of revenue in Q4 FY16.

During FY17, the Company’s operating income increased 8.3% to $808.06 million from $746.31 million in FY16. During FY17, the Company’s operating margin increased 30 basis points to 5.5% of revenue from 5.2% of revenue in FY16.

During Q4 FY17, Aramark’s earnings before tax (EBT) increased 27% to $155.28 million from $122.22 million in the corresponding period of last year. For the reported quarter, the Company’s EBT margin increased 100 basis points to 4.4% of revenue from 3.4% of revenue in Q4 FY16.

For the reported quarter, Aramark’s net income increased 35.8% to $113.14 million on a y-o-y basis from $83.34 million in Q4 FY16. During Q4 FY17, the Company’s diluted earnings per share (EPS) increased 36.4% to $0.45 on a y-o-y basis from $0.33 in the same period of last year. For the reported quarter, Aramark’s adjusted net income increased 11.7% to $137.32 million on a y-o-y basis from $122.95 million in Q4 FY16. During Q4 FY17, the Company’s adjusted diluted EPS increased 10.2% to $0.54 on a y-o-y basis from $0.49 in Q4 FY16, but was below analysts’ expectations of $0.56.

During FY17, the Company’s net income increased 29.9% to $373.92 million from $287.81 million in FY16. During FY17, the Company’s diluted EPS increased 28.4% to $1.49 from $1.16 in FY16.

Segment Details

FSS North America – During Q4 FY17, the Company’s FSS North America segment’s revenue increased 1%, or 0.8% on an organic basis, to $2.52 billion from $2.49 billion in the comparable period of last year. For the reported quarter, the segment’s operating margin increased 90 basis points to 6.5% of revenue from 5.6% of revenue in Q4 FY16.

FSS International – During Q4 FY17, the Company’s FSS International segment’s revenue increased 12.3%, or 9.7% on an organic basis, to $742.73 million from $661.13 million in the corresponding period of last year. For the reported quarter, the segment’s operating margin increased 100 basis points to 6.5% of revenue from 5.5% of revenue in Q4 FY16.

Uniform – During Q4 FY17, the Company’s Uniform segment’s revenue increased 0.7% to $393.79 million from $391.04 million in the same period of last year. For the reported quarter, the segment’s operating margin decreased 280 basis points to 9.7% of revenue from 12.5% of revenue in Q4 FY16.

Balance Sheet

As on September 29, 2017, Aramark’s cash and cash equivalents increased 56.5% to $238.80 million from $152.58 million as on September 30, 2016. For the reported quarter, the Company’s long-term borrowings decreased 0.6% to $5.19 billion from $5.22 billion in Q4 FY16.

For the reported quarter, the Company’s receivables increased 9.5% to $1.62 billion from $1.48 billion in Q3 FY16. For the reported quarter, the Company’s accounts payable increased 12.8% to $955.93 million from $847.59 million in Q3 FY16.

During FY17, the Company’s net cash provided by operating activities increased 21.5% to $1.05 billion from $867.31 million in Q4 FY16. During FY17, the Company’s free cash flow increased 36.2% to $519.56 million from $381.61 million in Q4 FY16.

Outlook

For FY18, the Company expects adjusted diluted EPS to be in the range of $2.10 – $2.20.

Stock Performance Snapshot

December 26, 2017 – At Tuesday’s closing bell, Aramark’s stock was marginally down 0.30%, ending the trading session at $42.67.

Volume traded for the day: 553.23 thousand shares.

Stock performance in the last month – up 3.27%; previous three-month period – up 5.36%; past twelve-month period – up 17.81%; and year-to-date – up 19.46%

After yesterday’s close, Aramark’s market cap was at $10.48 billion.

Price to Earnings (P/E) ratio was at 28.73.

The stock has a dividend yield of 0.98%.

The stock is part of the Services sector, categorized under the Specialty Eateries industry. This sector was flat at the end of the session.

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