UniFirst shares jump 6% on better-than-expected Q3 results

WILMINGTON, Mass. – UniFirst Corporation (NYSE: NYSE:) reported a robust third quarter, surpassing analyst expectations with an earnings per share (EPS) of $2.03, which was $0.17 higher than the consensus estimate of $1.86.

The company’s revenue also exceeded forecasts, reaching $603.5 million against a predicted $601.17 million. Following the announcement, UniFirst’s stock price climbed by 6.8%.

The company’s third-quarter results showed a significant improvement compared to the same period last year, with consolidated revenues increasing by 4.6%. UniFirst’s operating income saw a substantial rise of 45.1%, and net income grew by an impressive 56.8% to $38.1 million from $24.3 million YoY. This growth was driven by solid performance in the Core Laundry Operations segment, which experienced a 5.3% increase in revenues to $528.5 million. However, the Specialty Garments segment faced a slight downturn, with revenues decreasing by 3.7%.

UniFirst’s President and CEO, Steven Sintros, expressed satisfaction with the results, attributing the success to the company’s dedicated team and their commitment to providing top-notch service. “We are pleased with the results for our third quarter, which delivered solid growth in revenues, EBITDA, and cash flows from operating activities,” Sintros stated.

Looking ahead, UniFirst provided guidance for the fiscal year 2024, projecting EPS to be between $7.17 and $7.49. This forecast places the midpoint slightly below the analyst consensus of $7.45. The company also anticipates revenues to range from $2.415 billion to $2.425 billion, aligning closely with the consensus estimate of $2.42 billion.

UniFirst’s strong financial health is further 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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