Aramark Q3 Profit Climbs, Lifts Full Year View - Update

(RTTNews) - Aramark Holdings Corp. (ARMK), a provider of services in food, facilities management, and uniforms, Monday reported increased third-quarter profit and lifted its earnings forecast for the year. The stock gained over 7 percent in pre-market trading.

Net income attributable to shareholders increased to $46.87 million or $0.19 per share from last year's $27.75 million or $0.13 per share.

Adjusted net income for the quarter was $77.8 million or $0.32 per share, while it totaled $59.4 million or $0.28 per share in 2013.

On average, seven analysts polled by Thomson Reuters expected earnings of $0.26 per share for the quarter. Analysts' estimates typically exclude special items.

Sales grew to $3.62 billion from last year's $3.49 billion. Analysts expected sales of $3.63 billion. Organic sales growth was 4 percent.

Sales in the Food and Support Services - North America segment rose 3 percent to $2.5 billion, and was up 4 percent organically.

Within the business, sales growth in the Education, Healthcare and Sports, Leisure and Corrections sectors were particularly notable as new business wins continue to come online.

Sales grew 5 percent in the Food and Support Services - International segment to $765.2 million, and were 6 percent organically.

In the Uniform and Career Apparel segment, sales were $367.1 million, up 3 percent on actual and organic basis.

Eric Foss, President and Chief Executive Officer, said, "Our performance reflects solid execution against a sound strategy and was broad-based across the segments and geographies of our portfolio. Based upon this strength and our overall business momentum, we are increasing our full-year 2014 earnings outlook."

On August 6, the company's Board of Directors declared a 7.5 cent dividend per share of common stock, payable on September 9, to shareholders of record on August 19.

Looking ahead, the company now expects 53-week adjusted earnings per share range of $1.45-$1.50 for fiscal 2014, compared to the previous estimate of $1.35 to $1.45 per share. Analysts expect earnings of $1.42 per share for the year.

ARMK, which closed at $26.55 on Friday, gained 7.3 percent in pre-market trading.