Aramark (NYSE:ARMK) Posts Quarterly Earnings Results, Hits Estimates

Aramark (NYSE:ARMK) released its quarterly earnings data on Monday. The company reported $0.54 earnings per share for the quarter, hitting the consensus estimate of $0.54, Briefing.com reports. Aramark had a net margin of 1.93% and a return on equity of 14.09%. The company had revenue of $4.42 billion for the quarter, compared to analyst estimates of $4.46 billion. During the same period in the previous year, the business earned $0.64 EPS. Aramark’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 Stock Performance

Shares of Aramark stock opened at $38.67 on Tuesday. The firm’s 50-day moving average is $38.11 and its 200 day moving average is $35.06. Aramark has a 1 year low of $25.92 and a 1 year high of $42.04. The company has a debt-to-equity ratio of 1.71, a current ratio of 0.96 and a quick ratio of 0.86. The stock has a market cap of $10.19 billion, a price-to-earnings ratio of 29.52 and a beta of 1.62.

Aramark Cuts Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, December 12th. Investors of record on Monday, December 2nd will be paid a dividend of $0.001 per share. This represents a $0.00 annualized dividend and a yield of 0.01%. The ex-dividend date is Monday, December 2nd. Aramark’s payout ratio is currently 29.01%.

Wall Street Analyst Weigh In

A number of equities analysts recently commented on the stock. Bank of America raised their price target on shares of Aramark from $36.00 to $39.00 and gave the stock a “buy” rating in a research report on Wednesday, August 7th. Robert W. Baird increased their target price on Aramark from $37.00 to $38.00 and gave the company a “neutral” rating in a research report on Wednesday, August 7th. Deutsche Bank Aktiengesellschaft upgraded Aramark from a “hold” rating to a “buy” rating and raised their price objective for the stock from $36.00 to $39.00 in a research report on Wednesday, August 7th. Morgan Stanley boosted their price target on Aramark from $35.00 to $38.00 and gave the company an “equal weight” rating in a research note on Monday, September 9th. Finally, Royal Bank of Canada raised Aramark from a “sector perform” rating to an “outperform” rating and upped their target price for the stock from $36.00 to $42.50 in a research report on Tuesday, September 17th. Three equities research analysts have rated the stock with a hold rating and eight have assigned a buy rating to the stock. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus target price of $40.35.

About Aramark

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.