Food and facilities services provider Aramark (NYSE: ARMK) will be announcing earnings results this Tuesday before the bell. Here’s what to look for.
Aramark beat analysts’ revenue expectations last quarter, reporting revenues of $4.91 billion, up 14.7% year on year. It was a strong quarter for the company, with a beat of analysts’ EPS estimates.
Is Aramark a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Aramark’s revenue to grow 6.7% year on year, improving from the 5.7% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Aramark has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Aramark’s peers in the business process outsourcing & consulting segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Huron delivered year-on-year revenue growth of 15.4%, beating analysts’ expectations by 3.2%, and CRA reported revenues up 12.8%, topping estimates by 6%. Huron traded up 40.4% following the results while CRA was down 4.1%.
Read our full analysis of Huron’s results here and CRA’s results here.
There has been positive sentiment among investors in the business process outsourcing & consulting segment, with share prices up 7.2% on average over the last month. Aramark is down 3.8% during the same time and is heading into earnings with an average analyst price target of $61.56 (compared to the current share price of $55.97).
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