Company Overview - Unifirst Corporation (UNF) is currently positioned as an intriguing investment choice due to solid earnings estimate revision activity and a favorable Zacks Industry Rank [1][5] - The company has seen a rise in earnings estimates, indicating a more bullish outlook from analysts for both short and long-term prospects [3][4] Industry Context - The Industrial Products space, where Unifirst operates, has a Zacks Industry Rank of 12 out of 247 industries, suggesting strong overall positioning compared to other segments [2] - A broad trend in the industry is likely benefiting multiple securities, indicating a rising tide effect that could lift all boats within this sector [2] Earnings Estimates - Over the past month, current quarter earnings estimates for Unifirst have increased from $2.07 per share to $2.14 per share, while current year estimates have risen from $7.63 per share to $7.94 per share [4] - These revisions have contributed to Unifirst earning a Zacks Rank of 2 (Buy), highlighting its solid market position [4]

Financial Performance - Revenues for the thirteen weeks ended March 1, 2025, increased to $602,219,000, up 1% from $590,711,000 for the same period in 2024[11] - Net income for the twenty-six weeks ended March 1, 2025, rose to $67,564,000, representing an 8.9% increase compared to $62,782,000 for the same period in 2024[11] - Operating income for the thirteen weeks ended March 1, 2025, was $31,214,000, a 12.8% increase from $27,943,000 in the prior year[11] - Basic income per share for common stock increased to $1.37 for the thirteen weeks ended March 1, 2025, compared to $1.14 for the same period in 2024, reflecting a 20.2% growth[11] - Net income for the twenty-six weeks ended March 1, 2025, was $67,564,000, an increase from $62,782,000 for the same period in the previous year, representing an increase of approximately 12.6%[25] - Cash provided by operating activities for the same period was $128,304,000, compared to $106,725,000 in the prior year, reflecting a growth of about 20.1%[25] - The net income available to shareholders for the thirteen weeks ended March 1, 2025, was $24.459 million, up from $20.457 million for the same period in 2024, indicating a year-over-year increase of 14.6%[66] - Diluted income per share for Common Stock was reported at $1.31 for the thirteen weeks ended March 1, 2025, compared to $1.09 for the same period in 2024, reflecting an increase of approximately 20.2%[68] Assets and Liabilities - Total assets as of March 1, 2025, amounted to $2,733,362,000, an increase from $2,696,413,000 as of August 31, 2024[17] - Cash and cash equivalents increased to $192,174,000 as of March 1, 2025, compared to $161,571,000 as of August 31, 2024[17] - Total current liabilities decreased to $277,560,000 as of March 1, 2025, from $281,437,000 as of August 31, 2024[17] - Shareholders' equity increased to $2,143,556,000 as of March 1, 2025, compared to $2,108,511,000 as of August 31, 2024[17] - Total current assets increased to $936.8 million as of March 1, 2025, compared to $915.7 million as of August 31, 2024[17] - Total liabilities stood at $589.8 million as of March 1, 2025, slightly up from $587.9 million as of August 31, 2024[17] Cash Flow and Investments - Total cash and cash equivalents at the end of the period increased to $192,174,000 from $90,538,000, marking a significant increase of approximately 112%[25] - The net cash used in investing activities was $67,225,000, compared to $73,447,000 in the previous year, indicating a decrease of approximately 8.5%[25] - Capital expenditures, including capitalization of software costs, were $66,086,000 for the current period, down from $72,902,000 in the previous year[25] - The Company completed four business acquisitions during the twenty-six weeks ended March 1, 2025, with an aggregate purchase price of approximately $6.5 million, primarily assigned to goodwill and intangible assets[45] Dividends and Share Repurchase - The company declared dividends of $0.350 per share for common stock and $0.280 per share for Class B common stock, totaling $5,260,000 and $996,000 respectively[25] - The Company authorized a new share repurchase program to repurchase up to $100.0 million of its outstanding shares of Common Stock, which may be executed in the open market or through privately negotiated transactions[116] - The Company repurchased $12,528,000 worth of common stock during the period, compared to $8,119,000 in the previous year, indicating an increase of approximately 54.5%[25] Revenue Segmentation - Core Laundry Operations accounted for 88.0% of total revenues in the thirteen weeks ended March 1, 2025, with revenues of $530,351 thousand, compared to 88.4% and $522,420 thousand in the same period of 2024[35] - Approximately 83.4% of the Company's revenues for the thirteen weeks ended March 1, 2025, were derived from fees for route servicing, consistent with 84.0% in the same period of 2024[36] - The Specialty Garments segment generated revenues of $44.4 million for the thirteen weeks ended March 1, 2025, compared to $43.5 million for the same period in 2024, showing a growth of 2.1%[113] - The First Aid segment reported revenues of $27.5 million for the thirteen weeks ended March 1, 2025, an increase from $24.8 million in the same period last year, representing a growth of 10.5%[113] Expenses and Costs - Selling and administrative expenses related to deferred commissions for the thirteen weeks ended March 1, 2025, were $4,855 thousand, compared to $4,443 thousand for the same period in 2024[43] - Contributions charged to expense under the defined contribution retirement savings plan for the thirteen weeks ended March 1, 2025, were $3.7 million, compared to $4.8 million for the same period in 2024, representing a decrease of 23.1%[59] - The Company reported a depreciation and amortization expense of $69,754,000 for the current period, slightly up from $68,893,000 in the previous year[25] Tax and Environmental Liabilities - The Company's effective tax rate for the thirteen weeks ended March 1, 2025, was 25.0%, a decrease from 26.2% in the prior year, primarily due to excess tax benefits related to stock-based compensation[97] - The Company has accrued environmental liabilities totaling $30.878 million, down from $31.255 million as of August 31, 2024[89] - Anticipated net costs for environmental remediation liabilities over the next five fiscal years total $34.005 million, after accounting for estimated insurance proceeds[90] - The Company has received a tax assessment from the Mexican federal tax authority totaling over $84.7 million, which is currently under appeal[93] Miscellaneous - The company continues to focus on market expansion and new product development strategies to drive future growth[11] - The Company recognized a gain of $0.1 million from derivative financial instruments during the twenty-six weeks ended March 1, 2025, which was reclassified from accumulated other comprehensive loss to revenue[58] - The balance of accumulated other comprehensive loss as of March 1, 2025, was $(32.95) million, compared to $(23.04) million as of February 24, 2024, indicating a deterioration in comprehensive loss[106]

UniFirst (UNF) has been on a downward spiral lately with significant selling pressure. After declining 20.8% over the past four weeks, the stock looks well positioned for a trend reversal as it is now in oversold territory and there is strong agreement among Wall Street analysts that the company will report better earnings than they predicted earlier.How to Determine if a Stock is OversoldWe use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock i ...

WILMINGTON, Mass., April 08, 2025 (GLOBE NEWSWIRE) -- The Board of Directors of UniFirst Corporation (NYSE:UNF) today declared regular quarterly cash dividends of $0.350 per share (35.0 cents) on the Company's Common Stock and $0.280 per share (28.0 cents) on the Company's Class B Common Stock. Both dividends are payable on June 27, 2025 to shareholders of record on June 6, 2025. UniFirst also announced today that its Board of Directors authorized a new share repurchase program allowing the Company to repur ...

UniFirst (UNF) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.The power of a changing earnings pictu ...

For the quarter ended February 2025, UniFirst (UNF) reported revenue of $602.22 million, up 2% over the same period last year. EPS came in at $1.40, compared to $1.22 in the year-ago quarter.The reported revenue represents a surprise of -0.14% over the Zacks Consensus Estimate of $603.04 million. With the consensus EPS estimate being $1.31, the EPS surprise was +6.87%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expec ...

UniFirst (UNF) came out with quarterly earnings of $1.40 per share, beating the Zacks Consensus Estimate of $1.31 per share. This compares to earnings of $1.22 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 6.87%. A quarter ago, it was expected that this uniform provider would post earnings of $2.27 per share when it actually produced earnings of $2.40, delivering a surprise of 5.73%.Over the last four quarters, the company h ...

Financial Data and Key Metrics Changes - Consolidated revenues for the second quarter were $602.2 million, an increase of 1.9% from $590.7 million in the prior year [19][20] - Operating income increased to $31.2 million, up 11.7% from $27.9 million [19][20] - Net income rose to $24.5 million or $1.31 per diluted share, compared to $20.5 million or $1.09 per diluted share [20] - Adjusted EBITDA increased to $68.9 million from $64.8 million, reflecting a 6.3% growth [20] Business Line Data and Key Metrics Changes - Core laundry operations revenues were $530.4 million, a 1.5% increase from the previous year, with organic growth at 1.9% [22] - Specialty garment segment revenues increased to $44.4 million, up 2.2%, while operating margin decreased to 16.7% from 22.8% [24] - First aid segment revenues rose to $27.5 million, a 10.6% increase, but the segment reported a nominal operating loss of $0.5 million [25] Market Data and Key Metrics Changes - Operating cash flow improved by 20.2% year-to-date, totaling $128.3 million, driven by enhanced profitability and lower working capital needs [26] - The company expects fiscal 2025 revenues to be between $2.422 billion and $2.432 billion, reflecting anticipated negative impacts from the Canadian dollar exchange rate [27] Company Strategy and Development Direction - The company is focused on investing in people, technology, and infrastructure to support growth and improve profitability [10] - A significant expansion of the distribution center in Owensboro, Kentucky, is underway to enhance service efficiency [15] - The strategy includes improving operational execution and margin enhancement, with ongoing efforts in strategic pricing, procurement, and inventory management [16][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving mid-single-digit growth and high teen EBITDA margins in the future [36] - The company is optimistic about the positive trends in revenue-related leading indicators, including contract renewals and customer retention [13] - Management acknowledged the uncertainty surrounding tariffs but emphasized confidence in the ability to adapt and minimize impacts [48] Other Important Information - The company has no long-term debt and reported cash and short-term investments totaling $201 million [25] - The board rejected an unsolicited acquisition proposal from Cintas, focusing on executing the company's growth strategy [29][30] Q&A Session Summary Question: How does the company plan to achieve value creation comparable to the Cintas offer? - Management believes there are significant opportunities for growth and aims for mid-single-digit growth and high teen EBITDA margins [36][38] Question: What is the impact of tariffs on the business? - Management has not included specific tariff impacts in guidance due to uncertainty but anticipates potential short to midterm effects [48] Question: What factors contributed to the raised EPS guidance? - The adjustment is primarily due to anticipated improvements in core laundry operations [56] Question: How does seasonality affect core laundry margins? - The second quarter is typically the least profitable due to various expenses, and last year's extra week in the fourth quarter may create a year-over-year headwind [58][60] Question: What is the current status of net promoter scores? - Management noted that net promoter scores are improving but did not disclose specific figures, emphasizing the importance of customer experience [82][88]

Financial Performance - Consolidated revenues for Q2 2025 increased by 1.9% to $602.2 million compared to $590.7 million in Q2 2024[4] - Operating income rose to $31.2 million, reflecting an increase of 11.7% year-over-year[4] - Net income increased by 19.6% to $24.5 million from $20.5 million in the prior year[4] - Diluted earnings per share grew by 20.2% to $1.31 from $1.09 in the prior year[4] - Adjusted EBITDA for the quarter increased by 6.3% to $68.9 million compared to $64.8 million in the prior year[4] - Revenues for the thirteen weeks ended March 1, 2025, were $602,210,000, reflecting a revenue growth of 1.5% compared to $590,710,000 for the same period in 2024[15] - The company reported a net income of $31,214,000 for the thirteen weeks ended March 1, 2025, compared to $27,943,000 in the prior year[15] - Total revenues for the twenty-six weeks ended March 1, 2025, were $1,207,127,000, representing a 1.9% increase compared to $1,184,236,000 for the same period in 2024[17] - Operating income for the twenty-six weeks ended March 1, 2025, was $67,290,000, with an operating margin of 6.3%, compared to an operating income of $61,137,000 and an operating margin of 6.8% in the prior year[17] - The company reported a net income of $67,564,000 for the twenty-six weeks ended March 1, 2025, compared to $62,782,000 for the same period in 2024[19] Cash Flow and Assets - Cash flow from operating activities for the first half of fiscal 2025 was $128.3 million, an increase of 20.2% over the prior year[11] - The company had no long-term debt outstanding as of March 1, 2025, and cash and short-term investments totaled $201.0 million[11] - Cash and cash equivalents increased to $192,174,000 from $161,571,000, a rise of 18.9%[14] - The company’s cash and cash equivalents at the end of the period were $192,174,000, up from $90,538,000 at the end of the previous year[19] Key Initiatives and Costs - Key Initiative costs for fiscal 2025 are anticipated to approximate $12.0 million, revised down from prior estimates[7] - The company incurred approximately $1.9 million in costs related to Key Initiatives, impacting operating margins[16] - The company incurred approximately $4.4 million in costs related to Key Initiatives during the first half of fiscal 2025, impacting operating margins[18] Growth Metrics - Organic growth, excluding acquisitions and currency fluctuations, was 1.9%[5] - The company expects fiscal 2025 revenues to be between $2.422 billion and $2.432 billion, with diluted earnings per share projected between $7.30 and $7.70[7] - The company’s revenue growth for Core Laundry Operations was 1.6% for the twenty-six weeks ended March 1, 2025, compared to the previous year[17] Inventory and Liabilities - Total current assets increased to $936,847,000 from $915,676,000, representing a growth of 2.5%[14] - Total liabilities amounted to $589,806,000, showing a slight increase from $580,790,000[14] - Inventories increased to $159,067,000 from $156,908,000, indicating a growth of 1.4%[14] - The company’s goodwill stood at $653,004,000, reflecting a stable position compared to the previous period[14] Capital Expenditures and Margins - Capital expenditures for the twenty-six weeks ended March 1, 2025, were $66,086,000, down from $72,902,000 in the prior year[19] - Adjusted EBITDA for the thirteen weeks ended March 1, 2025, was $59,357,000, with an adjusted EBITDA margin of 11.2%[15] - Adjusted EBITDA for the twenty-six weeks ended March 1, 2025, was $162,878,000, with an adjusted EBITDA margin of 13.5%, compared to $153,524,000 and a margin of 13.0% in the previous year[25] - The adjusted EBITDA margin for Core Laundry Operations was 13.0% for the twenty-six weeks ended March 1, 2025, compared to 12.4% in the previous year[25]

WILMINGTON, Mass., April 02, 2025 (GLOBE NEWSWIRE) -- UniFirst Corporation (NYSE: UNF) (the “Company,” “UniFirst” or “we”) today reported results for its second quarter ended March 1, 2025 as compared to the corresponding period in the prior fiscal year: Q2 2025 Financial Highlights Consolidated revenues for the second quarter increased 1.9% to $602.2 million.Operating income was $31.2 million, an increase of 11.7%.The quarterly tax rate decreased to 25.0% compared to 26.2% in the prior year.Net income incr ...