Aramark Q2 Profit Beats Expectations

reported better-than-expected earnings for the fiscal second quarter on Wednesday. For the full year, Aramark expects adjusted earnings of $1.60 to $1.70 per share, versus analysts' estimates of $1.56 per share. The Philadelphia, Pennsylvania-based company reported a quarterly profit of $59.8 million, or $0.24 per share, versus a year-ago profit of $12.9 million, or $0.05 per share. Excluding certain items, the company's earnings climbed to $0.37 per share from $0.29 per share. Its revenue rose 2.6 percent to $3.6 billion. However, analysts were estimating earnings of $0.36 per share on revenue of $3.57 billion. Sales in its North America food and support services segment climbed 6 percent to $2.5 billion, while sales in international food and support-services segment dropped 8 percent to $700 million. Sales at the company's uniform-apparel business rose 4 percent to $400 million. Its adjusted operating margin widened 20 basis points during the quarter. "In the second quarter we delivered strong sales growth and financial performance across our portfolio. We simultaneously drove greater efficiency and productivity while investing in talent, branding and technology," said Eric J. Foss, Chairman, President and Chief Executive Officer. "We remain confident in the fundamental strength of our business, which we continue to leverage through the execution of a clear and focused strategy to create long-term shareholder value." Aramark shares closed at $31.25 yesterday.