Vestis (NYSE:VSTS) Issues Quarterly Earnings Results

Vestis (NYSE:VSTS) released its earnings results on Tuesday. The company reported $0.10 earnings per share for the quarter, beating analysts’ consensus estimates of $0.06 by $0.04, FiscalAI reports. The firm had revenue of $663.39 million during the quarter, compared to the consensus estimate of $665.77 million. Vestis had a positive return on equity of 2.62% and a negative net margin of 1.47%.The company’s revenue was down 3.0% compared to the same quarter last year. During the same period in the prior year, the company posted $0.14 EPS.

Here are the key takeaways from Vestis’ conference call:

• Operational execution improved with on-time delivery +300 bps, plant productivity +7%, customer complaints -12%, and Adjusted EBITDA rose sequentially to $70.4M, supporting management’s focus on cost-per-pound as the primary value driver.
• Revenue declined $20.4M (3%) year-over-year despite flat pounds processed because a shift toward linen/towels/aprons cut revenue per pound by about $0.04, lowering revenue quality and pressuring top-line growth.
• Management expects transformation savings to ramp to a $40M in-year benefit (and $75M run-rate), with 5% sequential Adjusted EBITDA improvement beginning Q2, though Q1 included ~$15M of one-time transformation costs.
• Cash flow and liquidity are solid: operating cash flow $38M, free cash flow $28M (adjusted FCF $43M excluding transformation spend), net debt ~$1.29B, $317M available liquidity, and plans to sell non-core properties to repay debt and delever.

Vestis Price Performance

Shares of NYSE:VSTS opened at $8.50 on Wednesday. Vestis has a one year low of $3.98 and a one year high of $13.85. The company has a debt-to-equity ratio of 1.49, a current ratio of 2.08 and a quick ratio of 1.64. The company has a market cap of $1.12 billion, a price-to-earnings ratio of -27.42 and a beta of 0.73. The firm has a 50 day simple moving average of $6.84 and a 200 day simple moving average of $5.67.

Analyst Ratings Changes

Several research firms have commented on VSTS. Weiss Ratings reissued a “sell (d)” rating on shares of Vestis in a report on Wednesday, January 21st. JPMorgan Chase & Co. increased their price target on shares of Vestis from $5.50 to $6.00 and gave the stock an “underweight” rating in a research report on Wednesday, December 3rd. The Goldman Sachs Group cut shares of Vestis from a “neutral” rating to a “sell” rating and decreased their price objective for the company from $6.30 to $5.30 in a research note on Thursday, January 8th. Finally, Robert W. Baird boosted their price objective on shares of Vestis from $5.00 to $6.50 and gave the company a “neutral” rating in a research report on Tuesday, December 2nd. One equities research analyst has rated the stock with a Hold rating and four have given a Sell rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of “Strong Sell” and an average price target of $5.70.

Key Stories Impacting Vestis

Here are the key news stories impacting Vestis this week:

• Positive Sentiment: Adjusted EPS beat estimates — Vestis reported $0.10 adjusted EPS vs. Street ~ $0.06, which investors view as proof that margin actions and cost control are working. VSTS Q1 Earnings Beat (Zacks)
• Positive Sentiment: Company reaffirmed fiscal 2026 outlook and highlighted early turnaround steps on the call (cost actions, margin focus and cash generation), supporting confidence in the multiquarter plan. Vestis Reports Q1 and Reaffirms Outlook (BusinessWire)
• Neutral Sentiment: Earnings‑call transcript and slide deck are available for detail — useful for investors who want specifics on timing of savings and revenue initiatives but not new headline news. Q1 2026 Earnings Call Transcript (Seeking Alpha)
• Negative Sentiment: Revenue missed modestly — Q1 revenue $663.4M vs. consensus ~$665.8M and was down ~3% year‑over‑year, which tempers the EPS beat and raises growth concerns. Vestis Falls Short in Q1 (MSN)
• Negative Sentiment: GAAP net loss and slim net margin — company reported a GAAP net loss (negative net margin ~1.5%) despite adjusted profits, leaving downside risk if revenue pressure persists. Vestis Q1 Press Release / Financials (Investor PDF)
• Negative Sentiment: Street price target action — a brokerage note set a $5.70 target, beneath current trading levels and signaling analyst skepticism on near‑term upside. Brokerages Set Target at $5.70 (American Banking News)

Insider Activity at Vestis

In other news, Director Douglas A. Pertz bought 15,000 shares of the company’s stock in a transaction on Friday, December 19th. The stock was purchased at an average cost of $6.90 per share, for a total transaction of $103,500.00. Following the completion of the transaction, the director owned 322,010 shares of the company’s stock, valued at $2,221,869. This trade represents a 4.89% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available at this link. Also, Director William Goetz purchased 6,746 shares of the business’s stock in a transaction dated Monday, December 8th. The shares were purchased at an average cost of $7.42 per share, for a total transaction of $50,055.32. Following the completion of the purchase, the director directly owned 29,877 shares of the company’s stock, valued at approximately $221,687.34. This represents a 29.16% increase in their position. The SEC filing for this purchase provides additional information. In the last ninety days, insiders bought 1,205,810 shares of company stock worth $8,138,302. Corporate insiders own 15.70% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the business. EverSource Wealth Advisors LLC grew its holdings in Vestis by 471.9% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 5,456 shares of the company’s stock worth $31,000 after acquiring an additional 4,502 shares during the last quarter. Osaic Holdings Inc. lifted its holdings in shares of Vestis by 703.2% during the second quarter. Osaic Holdings Inc. now owns 5,743 shares of the company’s stock worth $33,000 after purchasing an additional 5,028 shares during the period. PNC Financial Services Group Inc. grew its stake in shares of Vestis by 147.1% in the fourth quarter. PNC Financial Services Group Inc. now owns 8,006 shares of the company’s stock worth $53,000 after purchasing an additional 4,766 shares during the last quarter. Creative Planning bought a new stake in shares of Vestis in the second quarter worth $65,000. Finally, CIBC Bancorp USA Inc. acquired a new stake in Vestis in the third quarter valued at $56,000. Institutional investors own 97.40% of the company’s stock.

Vestis Company Profile

Vestis Corporation provides uniform rentals and workplace supplies in the United States and Canada. Its products include uniform options, such as shirts, pants, outerwear, gowns, scrubs, high visibility garments, particulate-free garments, and flame-resistant garments, as well as shoes and accessories; and workplace supplies, including managed restroom supply services, first-aid supplies and safety products, floor mats, towels, and linens. The company serves manufacturing, hospitality, retail, food processing, food service, pharmaceuticals, healthcare, automotive, and cleanroom industries.