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 ...

UniFirst Corporation UNF will release its second-quarter financial results before the opening bell on Wednesday, April 2. Analysts expect the company to report quarterly earnings at $1.34 per share, up from $1.12 per share in the year-ago period. UniFirst projects quarterly revenue of $602.81 million, compared to $590.71 million a year earlier, according to data from Benzinga Pro. On March 24, Cintas Corporation CTAS ended deal talks with UniFirst. The company had offered $275 per share in cash. UniFirst sh ...

Note that dividend yield can change on a rolling basis, as the dividend payment and the stock price both fluctuate over time. The dividend yield is calculated by dividing the annual dividend payment by the current stock price. As the stock price changes, the dividend yield will also change. For example, if a stock pays an annual dividend of $2 and its current price is $50, its dividend yield would be 4%. However, if the stock price increases to $60, the dividend yield would decrease to 3.33% ($2/$60). UniFi ...