Aramark (NYSE:ARMK) Issues Quarterly Earnings Results, Misses Estimates By $0.01 EPS

Aramark (NYSE:ARMK) posted its quarterly earnings data on Monday. The company reported $0.64 EPS for the quarter, missing analysts’ consensus estimates of $0.65 by ($0.01), Zacks reports. The business had revenue of $5.05 billion for the quarter, compared to analyst estimates of $5.16 billion. Aramark had a return on equity of 15.67% and a net margin of 2.02%.The company’s quarterly revenue was up 14.3% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.54 earnings per share. Aramark updated its FY 2026 guidance to 2.180-2.28 EPS.

Aramark Stock Performance

NYSE ARMK opened at $36.14 on Tuesday. Aramark has a 52-week low of $29.92 and a 52-week high of $44.49. The stock has a market cap of $9.50 billion, a PE ratio of 26.77 and a beta of 1.24. The firm has a 50-day moving average of $38.49 and a 200-day moving average of $39.77. The company has a debt-to-equity ratio of 2.03, a quick ratio of 1.14 and a current ratio of 1.29.

Aramark Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, December 17th. Stockholders of record on Friday, December 5th will be given a $0.12 dividend. The ex-dividend date of this dividend is Friday, December 5th. This is a boost from Aramark’s previous quarterly dividend of $0.11. This represents a $0.48 annualized dividend and a dividend yield of 1.3%. Aramark’s payout ratio is currently 31.11%.

Institutional Investors Weigh In On Aramark

A number of institutional investors have recently made changes to their positions in ARMK. Goldman Sachs Group Inc. increased its stake in shares of Aramark by 38.2% during the first quarter. Goldman Sachs Group Inc. now owns 489,646 shares of the company’s stock worth $16,903,000 after purchasing an additional 135,224 shares during the period. Creative Planning grew its holdings in Aramark by 36.0% in the 2nd quarter. Creative Planning now owns 9,918 shares of the company’s stock valued at $415,000 after buying an additional 2,625 shares in the last quarter. Cetera Investment Advisers increased its position in Aramark by 7.4% during the 2nd quarter. Cetera Investment Advisers now owns 8,294 shares of the company’s stock worth $347,000 after buying an additional 573 shares during the period. Arrowstreet Capital Limited Partnership acquired a new stake in shares of Aramark during the second quarter worth $640,000. Finally, Cerity Partners LLC boosted its position in shares of Aramark by 61.5% in the second quarter. Cerity Partners LLC now owns 16,097 shares of the company’s stock valued at $674,000 after acquiring an additional 6,127 shares during the period.

Analysts Set New Price Targets

ARMK has been the topic of several analyst reports. Robert W. Baird upgraded Aramark from a “neutral” rating to an “outperform” rating and upped their target price for the stock from $43.00 to $47.00 in a report on Wednesday, August 6th. Wall Street Zen cut Aramark from a “buy” rating to a “hold” rating in a research note on Saturday, August 9th. UBS Group decreased their target price on shares of Aramark from $46.00 to $45.00 and set a “buy” rating for the company in a research note on Wednesday, October 1st. Baird R W upgraded shares of Aramark from a “hold” rating to a “strong-buy” rating in a report on Wednesday, August 6th. Finally, Weiss Ratings reiterated a “hold (c+)” rating on shares of Aramark in a research note on Tuesday, October 14th. One equities research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat.com, Aramark currently has a consensus rating of “Moderate Buy” and a consensus price target of $45.83.

About Aramark

Aramark provides food and facilities services to education, healthcare, business and industry, sports, leisure, and corrections clients in the United States and internationally. It operates through two segments, Food and Support Services United States, and Food and Support Services International. The company offers food-related managed services, including dining, catering, food service management, and convenience-oriented retail services; non-clinical food and food-related support services, such as patient food and nutrition, retail food, environmental services, and procurement services; and plant operations and maintenance, custodial/housekeeping, energy management, grounds keeping, and capital project management services.