Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Why UniFirst Shares Spiked

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of workplace clothing and protective work wear clothing supplier UniFirst (NYSE: UNF  ) soared as much as 17%, following the release of much better-than-expected first-quarter earnings results.

So what: For the quarter, UniFirst recorded a 6% rise in revenue, to $332.6 million, as profits rose 19%, to $1.54, thanks to an 8% improvement in its laundry operations revenue. Wall Street analysts had only been forecasting a profit of $1.33 for the quarter on $326.3 million in revenue, so this was a very sizable earnings beat. UniFirst also boosted its full-year EPS and revenue guidance to a range of $5.10-$5.25 and $1.34 billion-$1.35 billion, from its previous forecast of $4.65-$4.85 and $1.33 billion-$1.34 billion.

Now what: Today's earnings beat was undeniably large, but I have to ask the question, "Now what?" UniFirst doesn't exactly have a way to "innovate" itself to double-digit growth, and it pretty much needs the unemployment market to continue improving if it hopes to expand its operations and maintain pricing power. Even at the midpoint of its guidance, which places UniFirst at 16 times forward earnings, I can't say that I'd consider it a particularly intriguing value here.

Craving more input? Start by adding UniFirst to your free and personalized Watchlist, so you can keep up on the latest news with the company.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2178308, ~/Articles/ArticleHandler.aspx, 9/29/2016 3:13:01 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 5 hours ago Sponsored by:
DOW 18,339.24 110.94 0.61%
S&P 500 2,171.37 11.44 0.53%
NASD 5,318.55 12.84 0.24%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/28/2016 4:02 PM
UNF $132.48 Up +1.55 +1.18%
UniFirst CAPS Rating: *****