Uniform rental provider Vestis Corporation (NYSE:VSTS) will be reporting results tomorrow after market close. Here’s what to look for.
Vestis missed analysts’ revenue expectations by 0.7% last quarter, reporting revenues of $683.8 million, down 4.8% year on year. It was a satisfactory quarter for the company, with an impressive beat of analysts’ EPS estimates.
Is Vestis a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Vestis’s revenue to decline 1.8% year on year to $693 million, a deceleration from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $0.15 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Vestis has missed Wall Street’s revenue estimates four times over the last two years.
Looking at Vestis’s peers in the industrial & environmental services segment, some have already reported their Q1 results, giving us a hint as to what we can expect. CECO Environmental delivered year-on-year revenue growth of 39.9%, beating analysts’ expectations by 17%, and UniFirst reported revenues up 1.9%, in line with consensus estimates. CECO Environmental traded up 23.9% following the results while UniFirst was down 1.7%.
Read our full analysis of CECO Environmental’s results here and UniFirst’s results here.
There has been positive sentiment among investors in the industrial & environmental services segment, with share prices up 11.7% on average over the last month. Vestis is up 15% during the same time and is heading into earnings with an average analyst price target of $14.43 (compared to the current share price of $8.98).
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