The 10-second takeaway
For the quarter ended Feb. 25 (Q2), UniFirst beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share improved significantly.
Gross margins dropped, operating margins were steady, net margins increased.
UniFirst recorded revenue of $310.0 million. The six analysts polled by S&P Capital IQ predicted net sales of $304.4 million on the same basis. GAAP reported sales were 11% higher than the prior-year quarter's $278.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.96. The seven earnings estimates compiled by S&P Capital IQ predicted $0.89 per share. GAAP EPS of $0.96 for Q2 were 17% higher than the prior-year quarter's $0.82 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 35.0%, 170 basis points worse than the prior-year quarter. Operating margin was 9.9%, about the same as the prior-year quarter. Net margin was 6.2%, 40 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $313.3 million. On the bottom line, the average EPS estimate is $0.99.
Next year's average estimate for revenue is $1.24 billion. The average EPS estimate is $4.20.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 74 members out of 84 rating the stock outperform, and 10 members rating it underperform. Among 27 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 25 give UniFirst a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on UniFirst is outperform, with an average price target of $66.67.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.