Aramark (NYSE:ARMK) Updates FY25 Earnings Guidance

Aramark (NYSE:ARMK) issued an update on its FY25 earnings guidance on Tuesday morning. The company provided EPS guidance of $1.91-1.98 for the period, compared to the consensus EPS estimate of $1.93. Aramark also updated its FY 2025 guidance to 1.910-1.980 EPS.

Analyst Ratings Changes

Several equities research analysts recently commented on the company. Morgan Stanley boosted their price target on Aramark from $40.00 to $43.00 and gave the company an “equal weight” rating in a research note on Thursday, December 12th. StockNews.com cut shares of Aramark from a “buy” rating to a “hold” rating in a report on Tuesday, January 7th. Truist Financial raised their target price on Aramark from $42.00 to $46.00 and gave the company a “buy” rating in a report on Tuesday, November 12th. Robert W. Baird boosted their price target on Aramark from $44.00 to $45.00 and gave the stock a “neutral” rating in a research report on Thursday, December 12th. Finally, JPMorgan Chase & Co. increased their price objective on Aramark from $41.00 to $45.00 and gave the company an “overweight” rating in a report on Tuesday, November 12th. Three analysts have rated the stock with a hold rating and nine have issued a buy rating to the company’s stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $42.59.

Aramark Stock Performance

Shares of ARMK traded down $1.07 during mid-day trading on Tuesday, hitting $37.38. The company’s stock had a trading volume of 3,940,981 shares, compared to its average volume of 1,860,012. Aramark has a one year low of $28.51 and a one year high of $42.49. The stock’s 50-day moving average is $38.88 and its two-hundred day moving average is $37.63. The firm has a market capitalization of $9.90 billion, a PE ratio of 37.87 and a beta of 1.64. The company has a debt-to-equity ratio of 1.42, a quick ratio of 0.72 and a current ratio of 0.81.

Aramark (NYSE:ARMK) last posted its quarterly earnings data on Tuesday, February 4th. The company reported $0.51 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.48 by $0.03. Aramark had a net margin of 1.51% and a return on equity of 14.06%. The company had revenue of $4.55 billion for the quarter, compared to the consensus estimate of $4.61 billion. During the same quarter in the previous year, the firm posted $0.41 EPS. The business’s revenue was up 3.3% compared to the same quarter last year. As a group, sell-side analysts anticipate that Aramark will post 1.93 EPS for the current year.

Aramark Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, February 24th. Investors of record on Monday, February 10th will be given a $0.105 dividend. This is a boost from Aramark’s previous quarterly dividend of $0.00. This represents a $0.42 annualized dividend and a yield of 1.12%. The ex-dividend date of this dividend is Monday, February 10th. Aramark’s dividend payout ratio (DPR) is 42.42%.

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.