Aramark (ARMK) Beats Q2 Earnings Estimates

Core Viewpoint - Aramark reported quarterly earnings of $0.34 per share, exceeding the Zacks Consensus Estimate of $0.33 per share, and showing an increase from $0.29 per share a year ago, indicating a positive earnings surprise of 3.03% [1][2] Financial Performance - The company posted revenues of $4.28 billion for the quarter ended March 2025, which was 1.59% below the Zacks Consensus Estimate, but an increase from $4.2 billion year-over-year [2] - Over the last four quarters, Aramark has surpassed consensus EPS estimates three times, but has only topped consensus revenue estimates once [2] Stock Performance - Aramark shares have declined approximately 8.3% since the beginning of the year, compared to a 3.9% decline in the S&P 500 [3] - The current Zacks Rank for Aramark is 4 (Sell), indicating expectations of underperformance in the near future [6] Earnings Outlook - The consensus EPS estimate for the upcoming quarter is $0.40 on revenues of $4.68 billion, and for the current fiscal year, it is $1.92 on revenues of $18.64 billion [7] - The trend of estimate revisions for Aramark has been unfavorable leading up to the earnings release [6] Industry Context - The Business - Services industry, to which Aramark belongs, is currently ranked in the top 24% of over 250 Zacks industries, suggesting a favorable industry outlook [8]