Aramark ( NYSE:ARMK ) Second Quarter 2024 Results

Key Financial Results

• Revenue: US$4.20b (down 8.7% from 2Q 2023).
• Net income: US$53.4m (down 4.6% from 2Q 2023).
• Profit margin: 1.3% (in line with 2Q 2023).
• GAAP EPS: US$0.20 (up from US$0.05 in 2Q 2023 on a continuing operations basis*).
• Adjusted EPS: US$0.29 (up from US$0.10 in Q2 2023 on a continuing operations basis).

*The distinction has been made owing to the spin-off of Aramark Uniform Services impacting the 2024 results.

All figures shown in the chart above are for the trailing 12 month (TTM) period

Aramark EPS Misses Expectations

Revenue was in line with analyst estimates. GAAP Earnings per share (EPS) missed analyst estimates by 7.5%. Adjusted EPS beat expectations by 7.4%.

Looking ahead, revenue is expected to decline by 1.1% p.a. on average during the next 3 years, while revenues in the Hospitality industry in the US are expected to grow by 9.8%.

Performance of the American Hospitality industry.

The company's shares are down 2.4% from a week ago.

Risk Analysis

Don't forget that there may still be risks. For instance, we've identified 3 warning signs for Aramark (2 are concerning) you should be aware of.

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