Aramark (NYSE:ARMK) Releases Quarterly Earnings Results, Meets Expectations

Key Points

• Aramark reported earnings of $0.40 EPS for the quarter, meeting the consensus estimate and showing a revenue increase of 5.7% compared to the previous year.
• Despite the earnings results, Aramark's stock fell 4.5% to $41.16 following the report, with analysts setting a consensus price target of $43.91.
• The company announced a quarterly dividend of $0.105 per share, reflecting an annual yield of 1.0% and a payout ratio of 32.31%.

Aramark (NYSE:ARMK - Get Free Report) posted its earnings results on Tuesday. The company reported $0.40 EPS for the quarter, hitting the consensus estimate of $0.40, RTT News reports. Aramark had a return on equity of 15.07% and a net margin of 1.97%. The business's revenue for the quarter was up 5.7% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.31 earnings per share.

Aramark Stock Down 4.5%

NYSE ARMK traded down $1.95 on Tuesday, reaching $41.16. The company had a trading volume of 2,269,927 shares, compared to its average volume of 1,969,836. The company has a debt-to-equity ratio of 2.02, a current ratio of 1.21 and a quick ratio of 1.08. The firm has a market capitalization of $10.79 billion, a PE ratio of 31.66 and a beta of 1.33. Aramark has a 1 year low of $29.92 and a 1 year high of $44.49. The firm has a 50-day moving average of $41.76 and a 200-day moving average of $37.97.

Aramark Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, August 20th. Investors of record on Wednesday, August 6th will be paid a $0.105 dividend. This represents a $0.42 annualized dividend and a yield of 1.0%. Aramark's payout ratio is 32.31%.

Institutional Investors Weigh In On Aramark

A hedge fund recently raised its stake in Aramark stock. Goldman Sachs Group Inc. boosted its stake in shares of Aramark (NYSE:ARMK - Free Report) by 38.2% in the 1st quarter, according to its most recent Form 13F filing with the SEC. The fund owned 489,646 shares of the company's stock after purchasing an additional 135,224 shares during the period. Goldman Sachs Group Inc. owned 0.19% of Aramark worth $16,903,000 as of its most recent filing with the SEC.

Analysts Set New Price Targets

A number of equities analysts have commented on the company. Morgan Stanley increased their target price on Aramark from $42.00 to $44.00 and gave the company an "equal weight" rating in a report on Monday, June 30th. Royal Bank Of Canada reiterated an "outperform" rating and issued a $47.00 price target on shares of Aramark in a research note on Wednesday, May 14th. Wall Street Zen upgraded Aramark from a "hold" rating to a "buy" rating in a report on Friday, July 18th. Finally, UBS Group upped their target price on shares of Aramark from $40.00 to $44.00 and gave the stock a "buy" rating in a research note on Wednesday, May 7th. Two analysts have rated the stock with a hold rating and ten have issued a buy rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $43.91.

Aramark Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.