Stock Monitor: Potbelly Post Earnings Reporting
LONDON, UK / ACCESSWIRE / March 01, 2018 / Active-Investors.com has just released a free earnings report on Aramark (NYSE: ARMK). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/'symbol=ARMK. Aramark reported financial results on February 06, 2018, for the first quarter of 2018 ending December 29, 2017. The Company's first quarter results represent a solid start to 2018 with strong, broad-based revenue growth across all of its segments. Register today and get access to over 1,000 Free Research Reports by joining our site below:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Aramark most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
www.active-investors.com/registration-sg/'symbol=ARMK
Earnings Highlights and Summary
Aramark's total revenues for the first quarter of 2018 (Q1 FY18) reached $3.97 billion, an increase of 6.15% from $3.74 billion in Q1 FY17. Of this organic growth in sales was 5% driven by revenue growth across all three segments. The remaining increment in sales was due to a weaker US dollar.
Aramark's cost and expenses jumped 7.3% to $3.75 billion in Q1 FY18 from $3.49 billion in Q1 FY17. There was a sharp increase of 40.77% in the selling and general corporate expenses to $92.17 million in Q1 FY18, from $65.47 million in Q1 FY17. The Company's operating income was $219.04 million for the reported quarter, which is 10.25% lower than $244.06 million in the same period last year.
For the quarter ending December 30, 2017, net income attributable to Aramark's stockholders was $292.28 million, up 133.19% from $125.34 million in Q1 FY17. The Company's diluted earnings per share attributable to Aramark's stockholders increased 132% to $1.16 in Q1 FY18 from $0.50 in Q1 FY17. The reported net income included charges related to merger and integration, refinancing on interest and other financing costs, and severance and other changers. It also included benefit from tax reform on provision for income taxes. Aramark's adjusted diluted earnings per share, excluding these non-recurring and non-items, were $.059 in Q1 FY18, up 7.27% from $0.55 in Q1 FY17. This was higher than analysts' consensus estimates of $0.58 per share.
Aramark's Segment Details
During Q1 FY18, the FSS United States segment reported revenues were $2.65 billion, up 4.67% y-o-y. This segment's operating income was $180.12 million in the reported quarter, an increase of 2.18% from $176.27 million in the year ago same quarter. The reported operating margin was 6.8% in Q1 FY18 compared to 6.96% in Q1 FY17.
The FSS International segment reported revenues of $912.98 million in Q1 FY18, an increment of 12.90% from $808.67 million in Q1 FY17. This segment's operating income was $46.02 million in the quarter under review, 13.29% higher than the $40.62 million reported in the previous year's comparable quarter. The operating margin declined 2 basis points to 5.04% in Q1 FY18 from 5.06% in Q1 FY17.
For Q1 FY18, the Uniform and Career Apparel segment generated revenues of $402.61 million, an increment of 1.81% from $395.45 million in Q1 FY17. This segment generated an operating income of $44.47 million in Q1 FY18, a decrease of 17.28% from $53.76 million in Q1 FY17. This segment's operating margin fell 2.55% to 11.05% in the reported quarter from 13.6% in the year ago same quarter.
Cash Matters
Aramark had cash and cash equivalents of $185.66 million as on December 29, 2017, a decrease of 22.25% from $238.8 million as on September 39, 2017. The Company's net cash outflow from operating activities in Q1 FY18 was $311.45 million compared to $26.03 million cash used in operating activities in Q1 FY17.
Aramark borrowed a total of $1.3 billion during Q1 FY18 to finance the acquisition of Avendra and related fees and expenses.
For the quarter ending December 29, 2017, Aramark paid $25.78 million in dividends compared to $25.25 million in the same period last year. The Company spent $24.41 million in stock repurchases and issued common stock worth $4.93 million in the reported quarter.
Outlook
For full-year 2018, Aramark expects adjusted EPS of $2.15 to $2.30 per share, an increase of $0.05-$0.10 per share from its previous guidance due to tax reforms benefit. The Company anticipates free cash flow of more than $400 million for fiscal 2018.
On February 01, 2018, Aramark's Board of Directors declared a quarterly dividend of $0.105 per share payable on March 01, 2018, to shareholders of record at the close of business on February 14, 2018.
Stock Performance Snapshot
February 28, 2018 - At Wednesday's closing bell, Aramark's stock was slightly down 0.14%, ending the trading session at $41.71.
Volume traded for the day: 2.62 million shares, which was above the 3-month average volume of 1.27 million shares.
Stock performance in the last three-month - up 0.82%; previous six-month period - up 3.58%; and past twelve-month period - up 16.70%
After yesterday's close, Aramark's market cap was at $10.22 billion.
Price to Earnings (P/E) ratio was at 31.50.
The stock has a dividend yield of 1.01%.
The stock is part of the Services sector, categorized under the Specialty Eateries industry.
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