G&K Services Profit Rises - Update

(RTTNews) - Branded uniform and facility service programs provider G&K Services Inc (GK), Thursday reported a an increase in fourth-quarter profit, helped mainly by a near 5 percent increase in revenue, while the prior year recorded one-time losses.

Following the results, shares of the company gained about 4 percent in morning trade on the Nasdaq.

The Minnetonka, Minnesota-based company posted quarterly net earnings of $15.7 million or $0.78 per share. This compares with a profit of $8 million or $0.40 per share last year, when it recorded $4.5 million loss from discontinued operations.

Excluding items, adjusted earnings for the quarter were $0.76 per share, compared with $0.68 per share a year ago.

On average, seven analysts polled by Thomson Reuters expected earnings of $0.73 per share for the quarter. Analysts' estimates typically exclude special items.

Revenue for the fourth quarter rose 4.7 percent to $229.7 million from $219.4 million in the prior year. Analysts had a consensus revenue estimate of $227.28 million for the quarter.

Lower exchange rate for the Canadian dollar reduced revenue growth by 1.1 percent. The rental organic growth rate, was 6 percent.

For fiscal year 2015, the company expect earnings of $3.10 to $3.25 per share and revenue of $930 million to $950 million. Analysts currently expect earnings of $3.18 per share on revenue of $936.9 million for the year.

The company's stock is trading at $51.52, up $1.89 or 3.81%, on a volume of 135k shares.