Yahoo Finance UniFirst (UNF) Q3 Earnings & Revenues Beat Estimates, Rise Y/Y
UniFirst Corporation UNF reported third-quarter fiscal 2024 (ended May 25, 2024) adjusted earnings of $2.19 per share, which surpassed the Zacks Consensus Estimate of $1.88. The bottom line increased 69.8% year over year. On a reported basis, the company’s earnings were $2.03 per share, up 57.4% year over year.
Notably, it incurred costs of 16 cents per share, associated with the acquisition of Clean Uniform and the implementation of its customer relationship management computer system and enterprise resource planning project.
UniFirst’s total revenues of $603.3 million beat the consensus estimate of $601 million. Also, the top line increased 4.6% year over year.
Segmental Discussion
Revenues from the Core Laundry Operations segment increased 5.3% year over year to $528.5 million. The segment’s organic revenues increased 4.7%. Operating margin increased 280 basis points year over year to 7%.
Revenues from the Specialty Garments segment declined 3.7% year over year to $47.6 million, owing to lower revenues from its nuclear operations. Operating margin decreased 130 basis points from the year-ago figure to 23.9%.
Revenues from the First Aid segment rose 7.1% year over year to $27.3 million. The segment’s EBITDA margin increased 60 basis points year over year to 3.5%.
Unifirst Corporation Price, Consensus and EPS Surprise
Unifirst Corporation price-consensus-eps-surprise-chart | Unifirst Corporation Quote
Margin Profile
UniFirst’s cost of sales increased 3.1% year over year to $391.2 million. Selling and administrative expenses decreased 2.7% to $129.1 million. Depreciation and amortization totaled $34.6 million, up 10.9% year over year.
UNF recorded an operating income of $48.5 million, up 45.1% year over year. Operating margin increased to 8% from 5.8% in the year-ago quarter.
Balance Sheet and Cash Flow
At the end of the fiscal third quarter, UniFirst had cash and cash equivalents of $112.2 million compared with $59.3 million at the end of the third quarter of fiscal 2023. The company had no long-term debt outstanding while exiting the reported quarter.
In the first nine months of fiscal 2024, UNF generated net cash of $193 million from operating activities compared with $142.8 million in the year-ago period.
In the same period, the company rewarded its shareholders with a dividend payment of $17.4 million, up 5.5% year over year. Also, it bought back shares worth $16 million.
Fiscal 2024 Outlook
Management expects revenues to be in the range of $2.415-$2.425 billion, indicating an increase from $2.23 billion reported in fiscal 2023. Core Laundry Operations’ organic revenues are projected to increase approximately 4.5%.
UNF anticipates earnings per share to be in the band of $7.17- $7.49 for the fiscal year. It expects an effective tax rate of 24.5%.
Zacks Rank & Stocks to Consider
UNF currently carries a Zacks Rank #3 (Hold). Some better-ranked companies are discussed below:
Luxfer Holdings plc LXFR presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
It has a trailing four-quarter average earnings surprise of 122.5%. The Zacks Consensus Estimate for LXFR’s 2024 earnings has improved 13.5% in the past 60 days.
Cintas Corporation CTAS currently carries a Zacks Rank #2 (Buy). CTAS delivered a trailing four-quarter average earnings surprise of 4.3%.
In the past 60 days, the Zacks Consensus Estimate for Cintas’ fiscal 2024 (ended May 2024) earnings has been stable.
Crane Company CR currently carries a Zacks Rank of 2 and has a trailing four-quarter earnings surprise of 15.2%, on average.
The Zacks Consensus Estimate for CR’s 2024 earnings has inched up 0.8% in the past 60 days.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Cintas Corporation (CTAS) : Free Stock Analysis Report
Unifirst Corporation (UNF) : Free Stock Analysis Report
Crane Company (CR) : Free Stock Analysis Report
Luxfer Holdings PLC (LXFR) : Free Stock Analysis Report
