Shares of Aramark (ARMK) experienced a slight decline of 0.1% in premarket trading on Tuesday, following the release of their fiscal fourth-quarter earnings report. The food and facilities company reported a net income of $205.4 million, or 78 cents per share for the quarter to Sept. 29. This represents a significant increase from the $75.8 million, or 29 cents per share, reported in the same period last year.
Strong Revenue Growth
Aramark's revenue for the quarter saw a substantial growth of 11.6%, reaching a total of $4.90 billion. This beat the revenue forecast of $4.79 billion according to FactSet consensus. The surge in revenue can be attributed to new business ventures and increased pricing strategies implemented by the company.
Following the completion of the spinoff of its uniform business on Sept. 30, Aramark announced a post-spinoff dividend of 9.5 cents per share. Shareholders of record on Nov. 28 will receive this dividend on Dec. 8.
Positive Outlook for Fiscal 2024
Looking ahead, Aramark expects adjusted EPS growth of 25% to 35% for fiscal 2024, compared to the post-spinoff fiscal 2023 EPS of $1.16. This would imply an EPS range of $1.45 to $1.57 for 2024, which falls slightly below the current FactSet consensus of $1.62.
Despite recent market volatility, Aramark's stock has managed to gain 3.6% over the past three months, outperforming the S&P 500 which experienced a decline of 1.7% during the same period.
Overall, Aramark's solid quarterly results, beating revenue expectations and demonstrating growth potential for the future, indicate a positive outlook for the company moving forward.
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