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WILMINGTON, MA – UniFirst Corporation (NYSE: NYSE:) reported a strong third quarter, beating analyst expectations with earnings per share (EPS) of $2.03, which was $0.17 higher than the consensus estimate of $1.86.
The company’s revenue also beat expectations, coming in at $603.5 million versus $601.17 million expected. Following the announcement, UniFirst’s stock price rose 6.8%.
The company’s third-quarter results showed a marked improvement compared to the same period last year, with consolidated revenues increasing by 4.6%. UniFirst’s operating income rose a whopping 45.1%, and net income grew an impressive 56.8% to $38.1 million from $24.3 million year over year. This growth was driven by strong performance in our core laundry segment, which saw a 5.3% increase in revenue to $528.5 million. However, the specialty apparel segment faced a slight decline, with revenues down 3.7%.
Stephen Centros, President and CEO of UniFirst, expressed his satisfaction with the results, attributing the success to the company’s dedicated team and their commitment to providing first-class service. “We are pleased with our third-quarter results, which delivered strong growth in revenues, EBITDA and cash flows from operating activities,” Centros said.
Looking ahead, UniFirst provided guidance for fiscal 2024, expecting earnings per share to range between $7.17 and $7.49. This forecast places the midpoint just below the analyst consensus of $7.45. The company also expects revenue to range from $2.415 billion to $2.425 billion, which is closely in line with the consensus estimate of $2.42 billion.
UniFirst’s strong financial health is also underscored by its cash position, with cash, cash equivalents and short-term investments totaling $125.4 million and no long-term debt outstanding as of May 25, 2024.
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