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Why Is Aramark Stock Gaining Today? - Aramark (NYSE:ARMK)
Benzinga· 2026-02-10 19:06
Core Viewpoint - Aramark's shares rose following a modest earnings beat and stronger-than-expected revenue, driven by robust new business momentum and record client retention while reaffirming its full-year outlook [1][5]. Quarterly Metrics - The company reported first-quarter adjusted earnings per share of 51 cents, exceeding the analyst consensus estimate of 50 cents [1]. - Quarterly sales reached $4.832 billion, reflecting a 6% year-over-year increase, surpassing the expected $4.739 billion [1]. - Operating income was $218 million, slightly higher than the previous year, while adjusted operating income (AOI) increased by 1% to $263 million [3]. Business Momentum - Aramark indicated strong momentum in new business wins, with net new business tracking ahead of its run rate, positioning the company to meet full-year growth targets [2]. - The favorable effect of currency translation contributed approximately $51 million to revenue, while organic revenue increased by 5% compared to the same period last year [2]. Financial Position - At the end of the quarter, the company had approximately $1.4 billion in cash availability [3]. Dividend Announcement - Aramark approved a quarterly dividend of 12 cents per share, payable on March 4, 2026 [4]. Outlook - The company reaffirmed its fiscal 2026 adjusted EPS guidance of $2.18 to $2.28, compared to analysts' estimates of $2.21 [5]. - Sales guidance is maintained at $19.55 billion to $19.95 billion, against a consensus of $19.71 billion [5].