Aramark (NYSE:ARMK) Issues Earnings Results, Hits Expectations

Aramark (NYSE:ARMK) announced its quarterly earnings results on Monday. The company reported $0.54 earnings per share for the quarter, meeting the consensus estimate of $0.54, Briefing.com reports. Aramark had a net margin of 1.51% and a return on equity of 14.06%. The business had revenue of $4.42 billion during the quarter, compared to analysts’ expectations of $4.46 billion. During the same quarter in the prior year, the company posted $0.64 EPS. The firm’s revenue for the quarter was up 5.2% compared to the same quarter last year. Aramark updated its FY 2025 guidance to 1.910-1.980 EPS.

Aramark Price Performance

Shares of Aramark stock traded up $1.08 during trading on Wednesday, reaching $39.10. The company’s stock had a trading volume of 3,482,040 shares, compared to its average volume of 2,228,588. The business has a 50 day moving average price of $38.24 and a 200-day moving average price of $35.17. The company has a quick ratio of 0.86, a current ratio of 0.81 and a debt-to-equity ratio of 1.42. The company has a market capitalization of $10.30 billion, a P/E ratio of 39.49 and a beta of 1.62. Aramark has a 12-month low of $25.92 and a 12-month high of $42.04.

Aramark Cuts Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, December 12th. Shareholders of record on Monday, December 2nd will be paid a $0.001 dividend. The ex-dividend date is Monday, December 2nd. This represents a $0.00 annualized dividend and a dividend yield of 0.01%. Aramark’s dividend payout ratio (DPR) is currently 38.38%.

Analyst Ratings Changes

Several analysts recently commented on ARMK shares. Bank of America increased their price objective on shares of Aramark from $36.00 to $39.00 and gave the company a “buy” rating in a research report on Wednesday, August 7th. UBS Group lifted their price target on shares of Aramark from $40.00 to $44.00 and gave the company a “buy” rating in a report on Tuesday, October 8th. Deutsche Bank Aktiengesellschaft raised Aramark from a “hold” rating to a “buy” rating and boosted their price target for the stock from $36.00 to $39.00 in a report on Wednesday, August 7th. Morgan Stanley upped their price objective on Aramark from $38.00 to $40.00 and gave the company an “equal weight” rating in a research report on Tuesday. Finally, JPMorgan Chase & Co. increased their price target on Aramark from $41.00 to $45.00 and gave the stock an “overweight” rating in a report on Tuesday. Three equities research analysts have rated the stock with a hold rating and nine have given a buy rating to the company’s stock. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $42.23.

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.