Morgan Stanley lowered the firm’s price target on Aramark (ARMK) to $43 from $44 and keeps an Equal Weight rating on the shares. Organic growth of 13.8% missed estimates by about 200 basis points, while 2026 guidance was roughly in line with expectations, the analyst tells investors in a post-earnings note. TipRanks Black Friday Sale Claim 60% off TipRanks Premium for the data-backed insights and research tools you need to invest with confidence. Subscribe to TipRanks' Smart Investor Picks and see our ...

Stifel Nicolaus sets a price target of $44 for Aramark (NYSE:ARMK), indicating a potential increase of 22.09%.Aramark reports quarterly earnings of $0.64 per share, slightly missing the Zacks Consensus Estimate by 1.54%.Despite a revenue shortfall of 2.11% against estimates, Aramark's year-over-year revenue growth demonstrates its expanding operations.Aramark (NYSE:ARMK) is a leading entity in the business services sector, offering comprehensive food, facilities, and uniform services across various industri ...

Core Insights - Aramark reported an earnings per share (EPS) of $0.33, which was significantly below the estimated $0.65, indicating inconsistency in meeting market expectations [2][6] - The company's revenue for the quarter was approximately $5.05 billion, exceeding the estimated $4.92 billion but falling short of the Zacks Consensus Estimate of $5.16 billion, reflecting a 14.3% year-over-year increase [3][6] - Following the earnings report, Aramark shares fell approximately 6%, reflecting investor disappointment and a cautious outlook for fiscal year 2026 with projected adjusted EPS between $2.18 and $2.28 [4][6] Financial Performance - Over the past four quarters, Aramark has exceeded consensus EPS estimates twice, showcasing some inconsistency in financial performance [2] - The company has consistently failed to surpass consensus revenue estimates over the last four quarters, despite showing revenue growth [3] - Financial metrics include a price-to-earnings (P/E) ratio of 29.37, a price-to-sales ratio of 0.52, and an enterprise value to sales ratio of 0.50, indicating a stable financial position [5] Market Context - The U.S. stock market experienced a downturn, with the Dow Jones index dropping over 150 points, contributing to the decline in Aramark's share price [4] - Competitors in the industry include Compass Group and Sodexo, which also provide similar services globally, highlighting the competitive landscape [1]

U.S. stocks traded lower this morning, with the Dow Jones index falling more than 150 points on Monday.Following the market opening Monday, the Dow traded down 0.38% to 46,966.91 while the NASDAQ fell 0.42% to 22,805.30. The S&P 500 also fell, dropping, 0.40% to 6,707.46.Check This Out: Top 3 Financial Stocks That May Explode In Q4Leading and Lagging SectorsCommunication services shares rose by 2.1% on Monday.In trading on Monday, information technology stocks fell by 1.1%.Top HeadlineShares of Aramark (NYS ...

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For the quarter ended September 2025, Aramark (ARMK) reported revenue of $5.05 billion, up 14.3% over the same period last year. EPS came in at $0.64, compared to $0.54 in the year-ago quarter.The reported revenue represents a surprise of -2.11% over the Zacks Consensus Estimate of $5.16 billion. With the consensus EPS estimate being $0.65, the EPS surprise was -1.54%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their ...

Wolf Report is a senior analyst and private portfolio manager with over 10 years of generating value ideas in European and North American markets. He is a contributing author and analyst for the investing group iREIT®+HOYA Capital and Wide Moat Research LLC where in addition to the U.S. market, he covers the markets of Scandinavia, Germany, France, UK, Italy, Spain, Portugal and Eastern Europe in search of reasonably valued stock ideas. Learn moreAnalyst’s Disclosure:I/we have a beneficial long position in ...

Wolf Report is a senior analyst and private portfolio manager with over 10 years of generating value ideas in European and North American markets. He is a contributing author and analyst for the investing group iREIT®+HOYA Capital and Wide Moat Research LLC where in addition to the U.S. market, he covers the markets of Scandinavia, Germany, France, UK, Italy, Spain, Portugal and Eastern Europe in search of reasonably valued stock ideas. Learn moreAnalyst’s Disclosure:I/we have a beneficial long position in ...

Financial Data and Key Metrics Changes - For fiscal 2025, the company reported revenue of $18.5 billion, a 6% increase compared to the prior year, with organic revenue growth of 7% [16][20] - Adjusted operating income for the fourth quarter was $289 million, growing 6% on a constant currency basis, while full-year adjusted operating income was $981 million, up 12% [17][18] - The adjusted EPS for the fourth quarter was $0.57, a 6% increase, and for the full year, it was $1.82, reflecting almost a 20% increase [20][21] - The consolidated leverage ratio improved to 3.25 times, the lowest level in nearly 20 years, down from 3.4 times a year ago [21][22] Business Line Data and Key Metrics Changes - The U.S. segment reported organic revenue growth of 14% in the fourth quarter, driven by new business and base business growth [8][16] - The international segment also experienced consistent double-digit organic revenue growth of 14% in the fourth quarter, with strong contributions from various geographic regions [12][19] - The healthcare segment reported its best performance in over two years, with significant new business wins contributing to growth [9][11] Market Data and Key Metrics Changes - The company achieved an industry-leading client retention rate of 96.3%, contributing to a net new business growth of 5.6% [6][7] - The collegiate sports business experienced double-digit revenue growth, with per capita rates up 14% year over year [9][10] - The supply chain GPO network added over $1 billion in new purchasing spend for the second consecutive year, indicating strong market demand [7][13] Company Strategy and Development Direction - The company is focused on delivering exceptional hospitality services and is committed to creating significant value for shareholders [25][24] - There is a strong emphasis on leveraging technology and operational efficiencies to drive profitability and growth [14][19] - The company plans to maintain a growth agenda focused on culture, team capabilities, and process improvements [13][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to achieve net new business growth of 4-5% of prior year revenue, with retention levels exceeding 95% in fiscal 2026 and beyond [7][23] - The company anticipates organic revenue for fiscal 2026 to be between $19.45 billion and $19.85 billion, representing growth of 7%-9% [22][23] - Management acknowledged the impact of inflation, estimating it around 3% heading into the new fiscal year, while emphasizing effective management of the macro environment [14][21] Other Important Information - The company is expanding its enterprise-wide capabilities and has secured significant contracts, including a multi-year agreement with the University of Pennsylvania Health System [10][11] - The company is actively pursuing new opportunities in various sectors, including healthcare and corrections, indicating a robust pipeline for future growth [51][66] Q&A Session Summary Question: Can you delve into the shift in timing for new account openings? - Management indicated that the shift occurred across multiple businesses, including corrections and healthcare, and was client-driven rather than company-driven [30][31] Question: What is the implication of the Penn Medicine deal for future hospital groups? - Management believes there are significant new opportunities for self-op conversion in healthcare, with the Penn deal serving as a model for other institutions [51][52] Question: Can you discuss the organic revenue drivers for fiscal 2025 and 2026? - For fiscal 2025, base business growth was approximately 3.5%, with net new contributions around 1.5%, while for fiscal 2026, expected base business growth is 3-4% [56][57] Question: What are the factors behind the restructuring in the international business? - The restructuring is aimed at streamlining SG&A and optimizing operations, particularly in Europe and South America, despite the segment's healthy growth [75][76] Question: How does the company view retention rates moving forward? - Management aims to maintain a retention rate above 95%, with aspirations to achieve even higher levels, reflecting a commitment to continuous improvement [100][101]