G&K Services Q2 Profit Falls; Revises FY14 View - Quick Facts

(RTTNews) - G&K Services, Inc. (GK) Tuesday reported second-quarter net income of $7.92 million or $0.39 per share, sharply down from $13.22 million or $0.68 per share in the prior year.

Earnings from continuing operations increased to $0.81 per share from $0.66 per share a year ago. Adjusted earnings from continuing operations were $0.75 per share for the recent quarter.

On average, seven analysts polled by Thomson Reuters expected the company to earn $0.76 per share for the quarter. Analysts' estimates typically exclude special items.

The provider of branded uniform and facility services programs said its rental and direct sales revenue grew 3.5 percent to $225.92 million from $218.27 million a year earlier. Analysts estimated revenues of $236.17 million for the quarter.

G&K also revised its fiscal 2014 guidance to reflect the divested businesses, which are now classified as discontinued operations, and a lower exchange rate for the Canadian dollar.

The company now expects fiscal 2014 adjusted earnings from continuing operations to be in the range of $2.80 to $2.90 per share. Revenues are expected to be in a range of $890 million to $900 million.

Analysts are currently looking for earnings of $2.93 per share, on revenues of $941.58 million for the year.