What happened

Shares of Aramark (NYSE:ARMK), a provider of food, facilities management, and uniform services, fell sharply on Tuesday. The stock declined as much as 13.4%. As of 2:53 p.m. EST, the stock was down 12.4%.

The stock's decline was likely triggered by the company's investor day presentation, which included worse-than-expected guidance for fiscal 2019 non-GAAP earnings per share.

A chalkboard sketch of a chart showing a stock price falling.

Image source: Getty Images.

So what

Last month, Aramark reported fourth-quarter revenue of $3.91 billion -- below a consensus analyst forecast for revenue or $3.93 billion. Adjusted earnings per share for the period was $0.70. Though this was up from $0.54 in the year-ago quarter, it was worse than analysts' average estimate for $0.71. 

Aramark CEO Eric Foss, however, had been pleased with the quarter, noting in the company's fourth-quarter press release that "2018 was a record year, driven by balanced, broad-based business momentum."

But now the company has another figure that is below a consensus analyst estimate. In its Dec. 11 investor day presentation, the company said it expects organic revenue to rise 2% to 4% year over year, leading to adjusted earnings per share between $2.27 and $2.37. On average, analysts were expecting adjusted fiscal 2019 earnings per share of $2.50, according to Reuters.

Now what

Management has been upbeat about its prospects. "While 2018 was an exceptional year," Foss said in the company's fourth-quarter press release last month, "we are even more excited about our future prospects for growth and sustainable shareholder value creation."

Notably, Aramark expects $500 million in free cash flow in fiscal 2019 when excluding a $50 million impact from Aramark's divestment of HCT (Healthcare Technologies).

Editor's note: A previous version of this article mistakenly said the stock was likely down on Tuesday because of the company's fourth-quarter results, which were reported on Nov. 13. The author and the Fool regret this error.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.