Aramark (NYSE:ARMK) Announces Earnings Results, Beats Estimates By $0.03 EPS

Aramark (NYSE:ARMK) posted its quarterly earnings data on Tuesday. The company reported $0.51 EPS for the quarter, topping the consensus estimate of $0.48 by $0.03, Zacks reports. Aramark had a net margin of 1.51% and a return on equity of 14.06%. The business had revenue of $4.55 billion for the quarter, compared to analyst estimates of $4.61 billion. During the same quarter in the previous year, the firm posted $0.41 earnings per share. Aramark’s quarterly revenue was up 3.3% on a year-over-year basis. Aramark updated its FY 2025 guidance to 1.910-1.980 EPS and its FY25 guidance to $1.91-1.98 EPS.

Aramark Stock Performance

ARMK opened at $37.73 on Wednesday. Aramark has a 12-month low of $28.51 and a 12-month high of $42.49. The company has a market cap of $9.99 billion, a price-to-earnings ratio of 38.11 and a beta of 1.64. The company has a current ratio of 0.81, a quick ratio of 0.72 and a debt-to-equity ratio of 1.42. The company’s 50 day moving average is $38.73 and its 200 day moving average is $37.70.

Aramark Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, February 24th. Stockholders of record on Monday, February 10th will be given a dividend of $0.105 per share. The ex-dividend date of this dividend is Monday, February 10th. This represents a $0.42 annualized dividend and a dividend yield of 1.11%. This is a positive change from Aramark’s previous quarterly dividend of $0.00. Aramark’s dividend payout ratio is presently 42.42%.

Analysts Set New Price Targets

A number of research analysts recently weighed in on the company. StockNews.com lowered Aramark from a “buy” rating to a “hold” rating in a research report on Tuesday, January 7th. Truist Financial raised their price objective on shares of Aramark from $42.00 to $46.00 and gave the company a “buy” rating in a research note on Tuesday, November 12th. The Goldman Sachs Group upped their target price on shares of Aramark from $38.00 to $41.00 and gave the stock a “buy” rating in a research note on Wednesday, October 16th. JPMorgan Chase & Co. boosted their price objective on shares of Aramark from $41.00 to $45.00 and gave the stock an “overweight” rating in a report on Tuesday, November 12th. Finally, UBS Group lifted their target price on Aramark from $40.00 to $44.00 and gave the stock a “buy” rating in a report on Tuesday, October 8th. Three investment 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, the stock has an average rating of “Moderate Buy” and an average price target of $42.59.

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.