Food and facilities services provider Aramark (NYSE: ARMK) will be reporting results this Tuesday morning. Here’s what investors should know.
Aramark beat analysts’ revenue expectations last quarter, reporting revenues of $4.83 billion, up 6.1% year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ full-year EPS guidance estimates but a significant miss of analysts’ EPS estimates.
Is Aramark a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Aramark’s revenue to grow 11.2% year on year, improving from the 1.9% increase it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Aramark has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Aramark’s peers in the business process outsourcing & consulting segment, some have already reported their Q1 results, giving us a hint as to what we can expect. CBIZ delivered year-on-year revenue growth of 1.3%, missing analysts’ expectations by 0.6%, and Huron reported revenues up 11.8%, topping estimates by 0.7%. CBIZ traded down 8% following the results while Huron was also down 9.2%.
Read our full analysis of CBIZ’s results here and Huron’s results here.
There has been positive sentiment among investors in the business process outsourcing & consulting segment, with share prices up 7.6% on average over the last month. Aramark is up 4.3% during the same time and is heading into earnings with an average analyst price target of $47.63 (compared to the current share price of $45.25).
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