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.
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.
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.