Shares of Aramark (ARMK) surged 5.12% in Tuesday's pre-market trading session following the release of its fiscal second-quarter earnings report. The food, facilities, and uniform services company posted better-than-expected adjusted earnings per share, despite a slight revenue miss, and reaffirmed its positive outlook for fiscal 2025.
Aramark reported adjusted earnings of $0.34 per share for the quarter ended March 31, surpassing analysts' expectations of $0.33 per share and showing a significant improvement from $0.29 per share in the same quarter last year. Revenue rose 1.9% to $4.28 billion, slightly below the consensus estimate of $4.35 billion. The company's net income increased to $61.9 million, or $0.23 per share, compared to $53.4 million, or $0.20 per share, in the year-ago period.
The stock's upward movement can be attributed to several factors. First, the earnings beat demonstrates Aramark's ability to improve profitability despite challenges. Second, the company reported positive business trends, including strong retention rates and new client wins. CEO John Zillmer highlighted accelerating monthly revenue growth heading into the second half of the fiscal year. Additionally, Aramark reaffirmed its expectations for fiscal 2025, projecting 23% to 28% growth in adjusted earnings per share, which has likely boosted investor confidence.
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