Company Performance - UniFirst (UNF) has gained approximately 1.1% year-to-date, outperforming the average loss of 13.5% in the Industrial Products sector [4] - The Zacks Consensus Estimate for UniFirst's full-year earnings has increased by 4.1% over the past quarter, indicating improved analyst sentiment and a more positive earnings outlook [3] - UniFirst is currently ranked 2 (Buy) in the Zacks Rank system, which emphasizes earnings estimates and revisions [3] Industry Context - UniFirst is part of the Uniform and Related industry, which consists of 2 companies and is currently ranked 11 in the Zacks Industry Rank [5] - Stocks in the Uniform and Related industry have experienced an average loss of 17.7% year-to-date, indicating that UniFirst is performing better than its immediate industry peers [5] - In contrast, Wartsila (WRTBY), another stock in the Industrial Products sector, has a year-to-date return of 9% and is also ranked 2 (Buy) [4][5] Sector Overview - The Industrial Products sector, which includes 192 individual stocks, is ranked 10 in the Zacks Sector Rank [2] - The Manufacturing - Electronics industry, to which Wartsila belongs, has seen a decline of 20.3% year-to-date and is ranked 83 [6]

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]

Core Viewpoint - UniFirst (UNF) has experienced a significant decline of 20.8% over the past four weeks, but it is now positioned for a potential trend reversal as it is in oversold territory, supported by analysts predicting better earnings than previously estimated [1]. Group 1: Stock Performance and Technical Indicators - UNF's stock is currently in oversold territory with an RSI reading of 24.2, indicating that the heavy selling pressure may be exhausting itself [5]. - The Relative Strength Index (RSI) is a momentum oscillator that helps identify whether a stock is oversold, typically when the RSI falls below 30 [2][3]. Group 2: Earnings Estimates and Analyst Consensus - There is strong agreement among sell-side analysts regarding an increase in earnings estimates for UNF, with a 4.1% rise in the consensus EPS estimate over the last 30 days [7]. - An upward trend in earnings estimate revisions is generally associated with price appreciation in the near term [7]. Group 3: Zacks Rank and Investment Potential - UNF holds a Zacks Rank of 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, indicating a strong potential for a turnaround [8].

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 ...

Core Viewpoint - UniFirst (UNF) has been upgraded to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][2]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which are closely correlated with near-term stock price movements [3][5]. - Institutional investors often rely on earnings estimates to determine the fair value of stocks, leading to buying or selling actions that affect stock prices [3]. Company Performance and Outlook - The upgrade for UniFirst indicates an improvement in the company's underlying business, which is expected to positively influence its stock price [4]. - For the fiscal year ending August 2025, UniFirst is projected to earn $7.94 per share, reflecting a -3.8% change from the previous year, but the Zacks Consensus Estimate has increased by 3.5% over the past three months [7]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [6]. - The upgrade of UniFirst to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [9].

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 ...

Core Viewpoint - UniFirst (UNF) reported quarterly earnings of $1.40 per share, exceeding the Zacks Consensus Estimate of $1.31 per share, and showing an increase from $1.22 per share a year ago, indicating a positive earnings surprise of 6.87% [1] Financial Performance - The company posted revenues of $602.22 million for the quarter ended February 2025, slightly missing the Zacks Consensus Estimate by 0.14%, but up from $590.71 million year-over-year [2] - Over the last four quarters, UniFirst has surpassed consensus EPS estimates four times and topped consensus revenue estimates three times [2] Stock Performance - UniFirst shares have increased approximately 2.5% since the beginning of the year, contrasting with the S&P 500's decline of -4.2% [3] Future Outlook - The company's earnings outlook is crucial for investors, with current consensus EPS estimates at $2.07 on revenues of $615.85 million for the upcoming quarter and $7.63 on $2.44 billion in revenues for the current fiscal year [7] - The estimate revisions trend for UniFirst is currently mixed, resulting in a Zacks Rank 3 (Hold), suggesting the stock is expected to perform in line with the market in the near future [6] Industry Context - The Uniform and Related industry, to which UniFirst belongs, is currently ranked in the top 7% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

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]