By Dean Seal

$Aramark(ARMK-W)$ posted higher quarterly profit that beat market forecasts as revenue rose on strong sales volumes from its base business, prompting the food, facilities and uniform-services company to boost its dividend and buy back shares.

The Philadelphia company Monday posted fiscal fourth-quarter net income of $122.4 million, or 46 cents a share, down from $205.4 million, or 79 cents a share, in the same period last year.

Stripping out one-time items, adjusted earnings for the quarter ended Sept. 27 were 54 cents a share. Analysts polled by FactSet had expected 52 cents a share.

Revenue rose 5% to $4.42 billion, below analyst forecasts for $4.46 billion, according to FactSet.

Aramark said sales volumes in its base business were strong while pricing normalized from what had been some favorable inflation, particularly in its education division. Foreign-currency translation weighed on the top line.

For the fiscal year started Sept. 28, revenue is expected to rise 7.5% to 9.5% year-over-year while adjusted earnings are forecast to grow 23% to 28%.

Aramark said that thanks to its growing and predictable cash flow, its board approved a new, $500-million-share buyback program.

The company also boosted its quarterly dividend by a penny to 10.5 cents, payable on Dec. 12 to shareholders of record on Dec. 2. The new payout, equal to 42 cents a year, represents an annual yield of about 1.07% based on Friday's closing price of $39.11 a share.

Aramark shares climbed 4.8% to $41 in premarket trading.

Write to Dean Seal at dean.seal@wsj.com

(END) Dow Jones Newswires

November 11, 2024 08:44 ET (13:44 GMT)

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