William Blair Has Bearish Outlook for Vestis FY2025 Earnings

Key Points

• William Blair has revised their FY2025 earnings per share estimate for Vestis Corporation down from $0.22 to $0.16, significantly lower than the consensus estimate of $0.70 per share.
• Analysts from JPMorgan and Barclays have also lowered their price targets for Vestis to $5.50 and $5.00 respectively, both maintaining an "underweight" rating.
• Despite recent earnings meeting estimates, Vestis saw a decline in revenue of 3.5% compared to the same quarter last year, raising concerns among analysts and investors.

Vestis Corporation (NYSE:VSTS - Free Report) - Analysts at William Blair lowered their FY2025 earnings per share (EPS) estimates for Vestis in a research report issued to clients and investors on Wednesday, August 6th. William Blair analyst T. Mulrooney now forecasts that the company will post earnings per share of $0.16 for the year, down from their previous forecast of $0.22. The consensus estimate for Vestis' current full-year earnings is $0.70 per share.

Vestis (NYSE:VSTS - Get Free Report) last released its quarterly earnings data on Tuesday, August 5th. The company reported $0.05 EPS for the quarter, meeting the consensus estimate of $0.05. Vestis had a positive return on equity of 3.76% and a negative net margin of 1.11%. The company had revenue of $673.80 million for the quarter, compared to analyst estimates of $673.65 million. During the same period last year, the company posted $0.16 earnings per share. The firm's revenue was down 3.5% compared to the same quarter last year.

Several other analysts also recently weighed in on VSTS. Wall Street Zen upgraded Vestis from a "sell" rating to a "hold" rating in a research note on Saturday. JPMorgan Chase & Co. lowered their target price on Vestis from $6.00 to $5.50 and set an "underweight" rating for the company in a research note on Thursday. Finally, Barclays lowered their target price on Vestis from $10.00 to $5.00 and set an "underweight" rating for the company in a research note on Friday, May 9th. Two equities research analysts have rated the stock with a sell rating and three have issued a hold rating to the stock. According to MarketBeat.com, Vestis currently has a consensus rating of "Hold" and an average price target of $9.13.

Vestis Stock Down 7.0%

NYSE:VSTS traded down $0.37 during mid-day trading on Friday, hitting $4.83. The company had a trading volume of 3,352,926 shares, compared to its average volume of 1,874,580. The business has a fifty day simple moving average of $6.05 and a 200-day simple moving average of $8.66. The company has a current ratio of 1.84, a quick ratio of 1.41 and a debt-to-equity ratio of 1.45. Vestis has a 1 year low of $4.81 and a 1 year high of $17.83. The firm has a market capitalization of $636.13 million, a price-to-earnings ratio of -20.98 and a beta of 0.96.

Hedge Funds Weigh In On Vestis

A number of hedge funds have recently bought and sold shares of VSTS. Alberta Investment Management Corp grew its stake in Vestis by 57.7% in the second quarter. Alberta Investment Management Corp now owns 9,692,000 shares of the company's stock worth $55,535,000 after purchasing an additional 3,547,000 shares in the last quarter. Millennium Management LLC grew its stake in Vestis by 179.4% in the fourth quarter. Millennium Management LLC now owns 3,003,762 shares of the company's stock worth $45,777,000 after purchasing an additional 1,928,687 shares in the last quarter. Royce & Associates LP boosted its stake in Vestis by 196.2% in the first quarter. Royce & Associates LP now owns 2,842,936 shares of the company's stock valued at $28,145,000 after acquiring an additional 1,883,106 shares during the period. Jane Street Group LLC boosted its stake in Vestis by 700.5% in the first quarter. Jane Street Group LLC now owns 1,982,027 shares of the company's stock valued at $19,622,000 after acquiring an additional 1,734,442 shares during the period. Finally, Alyeska Investment Group L.P. acquired a new position in Vestis in the fourth quarter valued at approximately $25,805,000. 97.40% of the stock is currently owned by institutional investors and hedge funds.

Insider Buying and Selling

In other news, Director Keith A. Meister purchased 377,277 shares of the firm's stock in a transaction that occurred on Friday, May 23rd. The stock was acquired at an average cost of $5.89 per share, for a total transaction of $2,222,161.53. Following the completion of the purchase, the director owned 18,380,501 shares of the company's stock, valued at approximately $108,261,150.89. This trade represents a 2.10% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders bought 800,675 shares of company stock valued at $4,777,432 in the last three months. 13.60% of the stock is currently owned by company insiders.

Vestis Company Profile

Vestis Corporation provides uniform rentals and workplace supplies in the United States and Canada. Its products include uniform options, such as shirts, pants, outerwear, gowns, scrubs, high visibility garments, particulate-free garments, and flame-resistant garments, as well as shoes and accessories; and workplace supplies, including managed restroom supply services, first-aid supplies and safety products, floor mats, towels, and linens.