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UniFirst (UNF), a leading financial services company, announced a better-than-expected second quarter profit for fiscal 2025 on Wednesday. However, sales fell short of analysts’ expectations.
The manufacturer of workplace uniforms reported earnings per Share (EPS) at $1.31 On revenue of $602. Million in revenue. Visible Alpha surveyed analysts who expected $1.20 in revenue and $603.5 million respectively.
FY Profits Forecast Well Above Expectations
The company expects revenue for the full-year to be between $2.42 and $2.43 Billion, slightly lower than the previous estimates of $2.43 and $2.44 Billion. This is in line with current estimates. Full-year EPS is seen between $7.30 and $7.70, well above the $7.09 consensus and up from the prior $6.79 to $7.19.
The revenue outlook was lowered due to "the anticipated negative impact of the Canadian Dollar exchange rate compared to our original expectations," while profit is expected to be higher because of improved projections in its Core Laundry business and the assumption that costs of its "key initiative" projects would be lower.
Cintas, the parent company of UniFirst, announced last week that it had canceled its $5.3 billion acquisition bid for UniFirst because “it was unable to engage in substantive dialogue with UniFirst about key transaction terms.” UniFirst’s stock had risen more than 20 percent on Jan. 7 after news of the proposal, but the company didn’t mention the rejected offer in its report.
UniFirst shares were little changed immediately following Wednesday's report. They were up 6% in the last year when they opened the day.
