Aramark (ARMK) Beats Q1 Earnings Estimates

Company Performance - Aramark reported quarterly earnings of $0.51 per share, exceeding the Zacks Consensus Estimate of $0.48 per share, and up from $0.41 per share a year ago, representing an earnings surprise of 6.25% [1] - The company posted revenues of $4.55 billion for the quarter ended December 2024, which was 1.29% below the Zacks Consensus Estimate, but an increase from $4.41 billion year-over-year [2] - Over the last four quarters, Aramark has surpassed consensus EPS estimates three times, but has only topped revenue estimates once [2] Stock Outlook - Aramark shares have increased approximately 3.1% since the beginning of the year, outperforming the S&P 500's gain of 1.9% [3] - The current consensus EPS estimate for the upcoming quarter is $0.37 on revenues of $4.43 billion, and for the current fiscal year, it is $1.93 on revenues of $18.67 billion [7] - The estimate revisions trend for Aramark is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Zacks Industry Rank for Food - Miscellaneous, which includes Aramark, is currently in the bottom 21% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Aramark's stock performance [5]