Investors in Aramark (ARMK) need to pay close attention to the stock based on moves in the options market lately. That is because the July 18, 2025 $20 Call had some of the highest implied volatility of all equity options today.What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there ...

Analyst’s Disclosure: I/we have a beneficial long position in the shares of ARMK, SDXAY either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. While this article may sound like financial advice, please observe that the author is not a CFA or in any way licensed to give financia ...

I wrote about Aramark (NYSE: ARMK ) previously with a buy rating as the FY25 outlook was positive, and I thought it could easily meet its guidance. However, I am no longer as confident aboutI am an individual investor that is now fully focus on managing my own capital that I have saved up over the years. My investing background spreads across a wide spectrum as I believe there are merits to each approach, for instance: Fundamental investing [Bottoms-up etc.], Technical investing [historical charts analysis] ...

Revenue and Income - Revenue for the three months ended December 27, 2024, was $4,552,086, an increase of 3.3% compared to $4,407,765 for the same period in 2023[16] - Net income attributable to Aramark stockholders for the three months ended December 27, 2024, was $105,619, significantly up from $28,536 in the prior year, representing a growth of 270.5%[16] - Operating income increased to $217,264 for the three months ended December 27, 2024, compared to $166,950 for the same period in 2023, reflecting a rise of 30.1%[16] - Earnings per share attributable to Aramark stockholders increased to $0.40 for the three months ended December 27, 2024, compared to $0.11 for the same period in 2023, a growth of 263.6%[16] - The company reported a comprehensive income of $76,699 for the three months ended December 27, 2024, compared to $6,353 for the same period in 2023, an increase of 1,109.5%[19] Cash and Liabilities - Total current liabilities decreased to $3,496,855 as of December 27, 2024, down from $4,214,210 as of September 27, 2024, a reduction of 17.0%[13] - Cash and cash equivalents at the end of the period were $484,149, down from $672,483 at the end of the previous quarter, a decrease of 28.0%[13] - Cash flows from operating activities resulted in a net cash used of $587,152 for the three months ended December 27, 2024, compared to $657,077 for the same period in 2023, a decrease of 10.6%[21] - The company incurred interest expenses of $75,804 for the three months ended December 27, 2024, down from $114,562 in the same period last year, a reduction of 33.8%[16] - As of December 27, 2024, long-term borrowings net totaled $4,976.9 million, an increase from $4,307.2 million as of September 27, 2024[61] Equity and Stockholder Information - Total stockholders' equity increased to $3,081,884 as of December 27, 2024, compared to $3,038,974 as of September 27, 2024, an increase of 1.4%[13] - The company declared dividends of $0.105 per share, totaling $29,858,000 for the period[23] - The Company had $1,158.1 million of availability under the senior secured revolving credit facility as of December 27, 2024[62] - The share repurchase program allows for the repurchase of up to $500.0 million of Aramark's outstanding common stock, with $0.9 million spent on repurchasing 24,743 shares during the three months ended December 27, 2024[83] Segment Performance - The company operates in two reportable segments: Food and Support Services United States and Food and Support Services International, with the U.S. being the largest market[27] - FSS United States segment revenue increased by approximately 2.7% to $3,301.0 million, driven by base business growth and contract price increases[119] - FSS International segment revenue rose by approximately 4.7% to $1,251.1 million, with growth attributed to volume increases and net new business, despite a 5.1% negative impact from foreign currency translation[121] Financial Adjustments and Accounting - The company is currently assessing the impact of new accounting standards on its financial statement disclosures, effective for fiscal years 2025 and beyond[30][32][33] - The company recognized $224.3 million of revenue that was included in deferred income at the beginning of the period[78] - The contingent consideration liability related to the Union Supply acquisition was adjusted to $11.1 million, expected to be fully paid out in Q2 of fiscal 2025[97] - Recent accounting standard updates are detailed in the condensed consolidated financial statements[151] Risk Management and Compliance - The company continues to manage operating costs and interest rate risks amid elevated market interest rates and inflationary pressures[105] - The maximum Consolidated Secured Debt Ratio is set at 5.125x, with non-compliance potentially leading to immediate repayment requirements[22] - The minimum Interest Coverage Ratio is established at 2.000x, which is necessary for incurring additional indebtedness and making restricted payments[22] - The company is engaged in informal settlement discussions regarding environmental law violations, which are not expected to materially affect financial conditions[157] Miscellaneous - The balance of accumulated other comprehensive loss increased from $(132,457,000) on September 27, 2024, to $(161,377,000) on December 27, 2024, indicating a decline in comprehensive income[38] - The company has not experienced any material changes in market risk associated with debt obligations from September 27, 2024, to December 27, 2024[152] - Management has concluded that disclosure controls and procedures are functioning effectively, providing reasonable assurance for timely reporting[153] - There have been no material changes to the risk factors disclosed in the previous annual report[159]

For the quarter ended December 2024, Aramark (ARMK) reported revenue of $4.55 billion, up 3.3% over the same period last year. EPS came in at $0.51, compared to $0.41 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $4.61 billion, representing a surprise of -1.29%. The company delivered an EPS surprise of +6.25%, with the consensus EPS estimate being $0.48.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they ...

Q1 Fiscal 2025 Earnings Results F E B R U A R Y 4 , 2 0 2 5 Q1 2025 Earnings Results Forward-Looking Statements This presentation contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements reflect our current expectations as to future events based on certain assumptions and include any statement that does not directly relate to any historical or current fact. These statements include, but are not limited to, statements under the heading ...

Aramark (ARMK) came out with quarterly earnings of $0.51 per share, beating the Zacks Consensus Estimate of $0.48 per share. This compares to earnings of $0.41 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 6.25%. A quarter ago, it was expected that this provider of food, facilities and uniform services would post earnings of $0.54 per share when it actually produced earnings of $0.54, delivering no surprise.Over the last fou ...

Gene Cleary (215) 409-7945 Cleary-Gene@aramark.com Aramark Reports First Quarter Earnings YEAR-OVER-YEAR SUMMARY • Operating Income +30% ; Adjusted Operating Income (AOI) +13% 1 2 •Expanded Global Supply Chain Footprint; Increased Purchasing Scale For Immediate Release Inquiries: Felise Glantz Kissell (215) 409-7287 Kissell-Felise@aramark.com •Commenced Share Repurchases; Returned Capital to Shareholders SUBSEQUENT TO FIRST QUARTER • Extended Debt Maturities; Further Enhanced Financial Flexibility Philadelp ...

Core Viewpoint - The market anticipates Aramark (ARMK) will report a year-over-year increase in earnings driven by higher revenues for the quarter ending December 2024, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - Aramark is expected to report quarterly earnings of $0.48 per share, reflecting a year-over-year increase of 17.1%, with revenues projected at $4.61 billion, up 4.6% from the previous year [3]. - The consensus EPS estimate has been revised 0.38% higher in the last 30 days, indicating a positive reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates a positive Earnings ESP of +5.53% for Aramark, suggesting analysts are optimistic about the company's earnings prospects [10][11]. - A positive Earnings ESP is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [8]. Historical Performance - In the last reported quarter, Aramark met the expected earnings of $0.54 per share, resulting in no surprise, and has beaten consensus EPS estimates three times over the last four quarters [12][13]. Conclusion - Aramark is positioned as a compelling candidate for an earnings beat, but investors should consider other influencing factors before making investment decisions [16].

Industry Overview - The US hospitality industry is estimated to grow from $247 billion at the start of 2025 to nearly $314 billion in the next five years [1] Company Overview - Aramark is a major player in the food and facilities services sector, serving education, healthcare, business, government, and sports industries [1] - The company's stock price is $36.85 with a 52-week range of $28.30 to $42.49, a P/E ratio of 37.22, and a dividend yield of 1.14% [3] - Analysts have set a consensus price target of $42.59, representing a 16% upside potential [5] Financial Performance - Aramark's stock surged 26.6% over the past year, consistently reaching new all-time highs [4] - In Q4 fiscal 2024, the company reported adjusted EPS of $0.54, beating analyst predictions, with revenue growing 5% YoY and international sales growing 9% [12] - The company expects organic revenue growth of 7.5% to 9.5% and adjusted EPS gains of 23% to 28% in fiscal 2025 [13] Strategic Initiatives - Aramark acquired Avendra in 2017 for over $1 billion, which managed $5 billion in annual purchases and improved supply chain efficiency [6] - The company launched Avendra International in September 2024, expected to utilize $20 billion in procurement power across 15 countries [7] - Avendra International acquired Quantum Cost Consultancy Group in December 2024, which has a $500 million customer spend in European and Caribbean markets [9] Shareholder Returns - Aramark increased its quarterly dividend from $0.095 to $0.105 and launched a $500 million share repurchase program [14] Analyst Sentiment - Nine out of 11 analysts rate Aramark as a Buy, with a Moderate Buy overall rating [5][12] - The company has a 15.6% upside potential based on analyst projections [12]