Aramark Q2 Adjusted EPS Beats By A Penny, Revenue Miss, Reaffirms Full Year Forecast

Aramark ARMK announced profit for the second quarter that grew 11.2 percent despite revenue slackening by 0.6 percent. The company's effective control over the costs enabled it to achieve profit growth. Its adjusted profit came in above the Street analysts' expectations. However, its revenue fell shy of the predictions by a whisper. But the company managed to retain its full year forecast thus saving its stock from a drop.

Aramark reported net income of $66.5million, up 11.2 percent from $59.89 million in the corresponding period of the last year. Similarly, its earnings grew 12.5 percent to $0.27 a share from $0.24 a share in the comparable period. Excluding adjustments, the company would have revealed 5.5 percent increase in its net income to $96 million or $0.39 a share from $91 million or $0.37 a share in the previous year quarter. This was $0.01 a share higher than the Street estimations of $0.38 a share.

The company's top line slackened 0.6 percent to $3.57 billion from $3.59 billion in the year-ago quarter thus dropping below the Street expectations of $3.65 billion.

Aramark's Chairman, President and CEO, Eric Foos, reacted to the results and said, "We delivered another quarter of strong financial and operational performance. Despite a challenging global macro environment, the combination of our resilient business model and focused strategy is driving improved innovation and customer satisfaction. That improvement, coupled with targeted investments to enhance execution and efficiency adds confidence in our ability to achieve sustained profitability expansion and shareholder value creation going forward."

Moving ahead, the company reaffirmed its 2016 adjusted earnings expectations $1.65 to $1.75 per share. The company indicated that the forecast included 4 cents of currency headwind. This was above the Street analysts' expectations of $1.66 a share.