Aramark reported Tuesday fiscal fourth-quarter profit that matched expectations while revenue beat, boosted by record net new business growth and higher pricing. The uniform and food services company's stock was still inactive in premarket trading. Net income nearly doubled to $75.80 million, or 29 cents a share, from $35.4 million, or 14 cents a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share came to 49 cents, matching the FactSet consensus of 49 cents. Revenue grew 23.6% to $4.39 billion, above the FactSet consensus of $4.10 billion. Food and support services (FSS) U.S. revenue rose 28.8% to $2.79 billion, while uniform and career apparel revenue increased 7.5% to $670 million and FSS international revenue rose 22.2% to $935 million, with all three business segments beating expectations. Operating income as a percentage of revenue improved to 4.5% from 3.7%. The stock has rallied 4.1% over the past three months, while the S&P 500 has shed 7.9%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.