ARAMARK Holdings misses by $0.03, misses on revs; guides FY18 EPS below consensus
- Reports Q4 (Sep) earnings of $0.54 per share, excluding non-recurring items, $0.03 worse than the Capital IQ Consensus of $0.57; revenues rose 3.1% year/year to $3.65 bln vs the $3.7 bln Capital IQ Consensus, an organic increase of 2% over the prior-year period. Revenue growth was negatively impacted by an estimated $25 million from natural disasters in the quarter. The North America segment was positively impacted by growth across all sectors. The International segment continued to deliver strong, broad-based organic growth, while Uniform sales were up modestly as expected. Income was negatively impacted by an estimated $17 million from natural disasters in the quarter, with a disproportionate impact in the Uniforms segment related to an asset impairment in Puerto Rico. In North America and International base accounts, the Company drove strong productivity improvements, while continuing to reinvest in technology and capabilities. Uniform income was also impacted by installation costs related to the onboarding of new business.
- Co issues downside guidance for FY18, sees EPS of $2.10-2.20, excluding non-recurring items, vs. $2.21 Capital IQ Consensus, the mid-point of which would represent the fifth consecutive year of double-digit adjusted EPS growth. The co is also expecting full-year free cash flow of greater than $400 million.
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