Shares of Aramark (NYSE:ARMK) jumped 3.78% to reach at $37.10 during the course of session. The company has experienced volume of 6.76M shares while on average the company has a capacity of trading 1.44M shares.
Aramark (NYSE:ARMK) on August 10, 2016 reported third quarter results and reaffirmed its earnings outlook for fiscal 2016.
- GAAP sales of $3.6 billion, up 3%. Organic sales increased 4%;
- GAAP operating income of $169 million, up 45%. Adjusted operating income increased to $202 million, up 15%;
- GAAP EPS of $0.18, up 29%. Adjusted earnings per share increased to $0.34, up 17%;
- GAAP operating income margin of 4.7%, up 130 basis points. Adjusted operating income margin increased 50 basis points to 5.6%.
The company drove solid productivity gains from food, labor and overhead initiatives in the third quarter, particularly in its FSS North America and FSS International base accounts. Both segments also benefited from the company’s previously announced portfolio optimization efforts. Productivity initiatives, capacity expansion and improved automation supported ongoing margin expansion at the Uniform & Career Apparel segment in the quarter.
THIRD QUARTER SUMMARY
On a GAAP basis, sales were $3.6 billion, operating income was $169 million, net income attributable to Aramark stockholders was $45 million and diluted earnings per share were $0.18. This compares to the third quarter of 2015 where on a GAAP basis, sales were $3.5 billion, operating income was $117 million, net income attributable to Aramark stockholders was $34 million and diluted earnings per share were $0.14. Third quarter GAAP diluted earnings per share increased 29% year-over-year.
Adjusted net income was $84 million or $0.34 per share, versus adjusted net income of $71 million or $0.29 per share in the third quarter of 2015. The stronger U.S. dollar versus the prior year period decreased sales by approximately $45 million and operating income by $2 million. Earnings per share was not materially affected by currency translation in the quarter.
During the quarter, the company excluded approximately $16 million from the calculation of organic sales and $0.5 million loss from the calculation of adjusted operating income related to its acquisition of the Irish specialty food and merchandise retailing company, Avoca Handweavers Limited. The results from this entity will be excluded from organic growth and adjusted operating income calculations during the first year of ownership.
Aramark (NYSE:ARMK) holds the market capitalization of $9.01B along with 242.83M outstanding shares. The stock traded in the price range of $36.44 – $37.27 for the last trading session. For the stock, price target value has been calculated at $38.30 based on calls of 10 experts. Stock’s minimum price target estimates has been figured out at $35.00 while the maximum price target forecast is established at $43.00.
As of current trade, Aramark (NYSE:ARMK) has shown weekly upbeat performance of 4.45%. Its six months performance indicated a bullish movement while its yearly performance reflected a positive trend of 16.95%. Year-to-date (YTD) performance of the stock illustrate upbeat trend of 15.72%. Shares of Aramark (NYSE:ARMK) currently have an ABR of 1.22, derived from a total of 9 opinions. The company’s price sits 7.97% above from its 50-day moving average of $34.85 and 137.58% above from the stock’s 200-day moving average of $13.55. The company has Relative Strength Index (RSI 14) of 71.56 along with Average True Range (ATR 14) of 0.50. Its weekly and monthly volatility is 1.22%, 1.21% respectively.
Aramark (NYSE:ARMK)’s price to sales ratio for trailing twelve months is 0.63 and price to book ratio for most recent quarter is 4.38, whereas price to cash per share for the most recent quarter is 61.18. Aramark (NYSE:ARMK)’s price to free cash flow for trailing twelve months is 47.51. Its quick ratio for most recent quarter is 1.00 along with current ratio for most recent quarter of 1.30. Total debt to equity ratio of the company for most recent quarter is 2.64 whereas long term debt to equity ratio for most recent quarter is 2.62. Aramark (NYSE:ARMK) has a Return on Assets of 2.40%. The company currently has a Return on Equity of 12.90% and Return on Investment of 7.30%.